By: Zachary Lopez (ZachNews)
Source: The White House (Information and Press Release)
Pictures: The White House (Courtesy)
United States of America: United States President Joe Biden has announced on Wednesday, August 24th, 2022 a new Student Loan Debt Plan that cancels some student debt for millions of Americans.
According to The White House, the Student Loan Debt Plan will provide $10,000 in debt cancellation for millions of Americans, and up to $10,000 more for those with the greatest financial need.
Borrowers who earn less than $125,000 a year, or families earning less than $250,000, would be eligible for the $10,000 loan forgiveness.
For recipients of Pell Grants, which are reserved for undergraduates with the most significant financial need, the federal government would cancel up to an additional $10,000 in federal loan debt.
United States President Joe Biden is also extending a pause on federal student loan payments for what he called the “final time” through the end of 2022.
More information can be found at the following website:
According to the Department of Education, an estimates among borrowers who are eligible for relief, 21% are 25 years and under and 44% are aged 26-39. More than a third are older than 40, including 5% who are senior citizens.
According to the Education Data Initiative, the nation’s outstanding federal student debt now tops $1.6 trillion after ballooning for years, and more than 43 million Americans have federal student debt, with almost a third owing less than $10,000 and more than half owing less than $20,000.
Republicans are criticizing the Biden administration’s plan as unfair and likely to lead to more inflation.
Republican National Committee Chairwoman Ronna McDaniel said, “As hardworking Americans struggle with soaring costs and a recession, Biden is giving a handout to the rich. Biden’s bailout unfairly punishes Americans who saved for college or made a different career choice, and voters see right through this short-sighted, poorly veiled vote-buy.”
Senate Minority Leader Mitch McConnell has also responded to the plan, saying Democrats have “found yet another way to make inflation even worse, reward far-left activists, and achieve nothing for millions of working American families who can barely tread water.”
“President Biden’s student loan socialism is a slap in the face to every family who sacrificed to save for college, every graduate who paid their debt, and every American who chose a certain career path or volunteered to serve in our Armed Forces in order to avoid taking on debt. This policy is astonishingly unfair,” Senate Minority Leader Mitch McConnell.
Senate Minority Leader Mitch McConnell noted that the “median American with student loans already has a significantly higher income than the median American overall.”
“Experts who studied similar past proposals found that the overwhelming benefit of student loan socialism flows to higher-earning Americans. Democrats specifically wrote this policy to make sure that people earning six figures would benefit. This is the one consistent thread that connects Democrats’ policies: Taking money and purchasing power away from working families and redistributing it to their favored friends,” said Senate Minority Leader Mitch McConnell.
When a reporter asked the president exiting the room, “if this unfair to people who pay their loans?” United States President Joe Biden responded with a question to the reporter saying, “Is it fair to people who have in fact do not own multi-billion dollar businesses to see why these guys get all the tax breaks, is that fair? What do you think?”
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