Biden cancels $10,000 in federal student loans for most borrowers | New

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President Joe Biden announced a student loan forgiveness plan on Wednesday that will forgive up to $10,000 in federal debt for most students and up to $20,000 for Pell Grant recipients. Biden also extended the federal student loan payment pause, which began during the COVID-19 pandemic, through the end of the year.

Borrowers earning less than $125,000, or $250,000 for married couples, per year will be eligible for debt relief through the US Department of Education, according to a White House Fact Sheet. “No high-income individuals or households – in the top 5% of income – will benefit from this action,” the statement said.

“During the campaign, he promised student debt relief,” Biden’s statement read. “Today, the Biden administration is following through on that promise and giving families a break as they prepare to start repaying their loans after the pandemic-driven economic crisis.”

It was not immediately clear how many University of Cincinnati (UC) students would benefit from the announcement. The university did not return The News Record’s request for comment.

However, according to the fact sheet, the “skyrocketing” in cumulative federal student loan debt has reached $1.6 trillion for more than 45 million borrowers – a “significant burden on America’s middle class.” . The White House said the average undergraduate student with loans is now leaving school with nearly $25,000 in debt.

Pell grants, which once covered nearly 80% of the cost of a four-year public degree, now cover only a third, according to the White House.

“Getting a college degree or certificate should give every person in America a head start in securing a bright future. But for too many people, student loan debt has hampered their ability to fulfill their dreams, including buying a house, starting a business or supporting their families,” Education Secretary Miguel Cardona said in a statement. “Receiving an education should set us free, not tie us down!”

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