Home WORLD AMERICA Joe Biden announces partial cancellation of student debt

Joe Biden announces partial cancellation of student debt

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In line with my campaign promise, my administration is announcing a plan to give working-class and middle-class families a break as they prepare to resume federal student loan repayments in January 2023.Mr. Biden tweeted, promising details in the afternoon.

The measure, announced less than three months before the midterm elections, affects people earning less than $125,000 a year, according to an illustration accompanying the president’s tweet.

It will be a question of erasing $10,000 for people who have not benefited from a federal scholarship to pay the costs related to their university studies, and $20,000 for those, with more modest means, who have received a .

Between $10,000 and $70,000 per year to study

The plan was announced after months of reflection at the White House on this issue, which has also been a headache for previous administrations. The executive was particularly concerned about the possibility that the measure would fuel already galloping inflation.

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Democratic Senators Chuck Schumer and Elizabeth Warren praised in a joint statement a giant step towards solving the student debt crisis.

The leader of the Republican Party, Ronna McDaniel, on the contrary considered that this measure unfairly punished Americans who saved up for college or made a different career choice.

American universities can charge anywhere from $10,000 to $70,000 a year, and many students start their working lives with heavy debt.

According to government estimates, the average debt of American students when they graduate is $25,000, a sum that many take years or even decades to pay off.

In total, some 45 million borrowers in the country collectively owe $1.6 trillion, according to the White House.

Biden also announced that a moratorium on student loan repayments, instituted during the COVID-19 pandemic, would be extended until the end of the year.

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