Home Loan Reviews US President, Joe Biden, Cancels $10,000 In Student Loan Debt For Millions Of Borrowers

US President, Joe Biden, Cancels $10,000 In Student Loan Debt For Millions Of Borrowers

0
US President, Joe Biden, Cancels $10,000 In Student Loan Debt For Millions Of Borrowers

President Joe Biden has stated that the United States government will forgive $10,000 in student loans for each borrower.

ALSO READ: Top 30 Best Instant Loan Apps In Nigeria 2022

This was disclosed in a statement issued by the White House, titled “President Biden Announces Student Loan Relief for Borrowers Who Need It Most”

Many Democrats had sought for as much as $50,000 per borrower to be cleared, but they applauded the action nonetheless as the party prepares for the midterm elections in November.

Speaking from the White House on Wednesday, Mr Biden said his plan would give more “breathing room” to working and middle-class families.

US President, Joe Biden, Cancels $10,000 In Student Loan Debt For Millions Of Borrowers

The White House said the country’s “skyrocketing cumulative federal student loan debt – $1.6 trillion and rising for more than 45 million borrowers – is a significant burden on America’s middle class.”

Biden’s administration will extend a COVID-19 pandemic-linked pause on student loan repayment through to the end of the year, while forgiving $10,000 in student debt for borrowers whose income falls below $125,000 a year, or $250,000 for a married couple, the White House said.

“To address the financial harms of the pandemic for low- and middle-income borrowers and avoid defaults as loan repayment restarts next year, the Department of Education will provide up to $20,000 in loan relief to borrowers with loans held by the Department of Education whose individual income is less than $125,000 ($250,000 for married couples) and who received a Pell Grant.

“Nearly every Pell Grant recipient came from a family that made less than $60,000 a year, and Pell Grant recipients typically experience more challenges repaying their debt than other borrowers. Borrowers who meet those income standards but did not receive a Pell Grant in college can receive up to $10,000 in loan relief.” the White House added.