President Joe Biden on Wednesday announced historic new steps to address student loan debt, which includes forgiving up to $20,000 for millions of borrowers and extending the payment freeze one final time until the end of the year.

“Education is a ticket to a better life. … but over time that ticket has become too expensive for too many Americans,” Biden said during a speech from the White House. “All this means that an entire generation is now saddled with unsustainable debt in exchange for an attempt, at least, at a college degree. The burden is so heavy that even if you graduate you may not have access to the middle-class life that the college degree once provided.”

The President’s sweeping plan on student loans follows extended, down-to-the-wire negotiations at the White House among stakeholders and lawmakers ahead of when payments were set to resume at the end of this month. The decision is already disappointing many, with those on the left arguing that the President should have provided even more loan forgiveness and those on the right asserting that Biden is punishing Americans who avoided going into debt. But it fulfills one of Biden’s campaign promises, issuing major reforms to America’s student loan system and providing relief to millions of current and future borrowers.

Borrowers who hold loans with the Department of Education and make less than $125,000 a year are eligible for up to $20,000 in student loan forgiveness if they received Pell Grants, which are given to students from low- and middle-income families. Individuals who make less than $125,000 a year but did not receive Pell Grants are eligible for $10,000 in loan forgiveness.

Biden said that the administration’s “targeted actions are for families that need it the most: working and middle class people hit especially hard during the pandemic making under $125,000 a year,” emphasizing that “about 90% of the eligible beneficiaries make under $75,000.”

“I understand not everything I’m announcing is going to make everybody happy,” Biden said. “Some think it’s too much – I find it interesting how some of my Republican friends who voted for those tax cuts think we shouldn’t be helping these folks. Some think it’s too little, but I believe my plan is responsible and fair. It focuses the benefit of middle-class and working families, it helps both current and future borrowers and it’ll fix a badly broken system.”

The Department of Education will announce details on how borrowers can claim this relief through an application in the coming weeks. Millions of borrowers will be able to receive relief automatically based on existing income data.

Additionally, the department is proposing a federal rule aimed at making the student loan system more manageable for current and future borrowers.

The proposed rule would change income-based repayment for student loans, cutting in half the amount borrowers would have to pay each month on their undergraduate loans, “while borrowers with both undergraduate and graduate loans will pay a weighted average rate.”

The proposal would also “raise the amount of income that is considered non-discretionary income and therefore protected from repayment.” And it would forgive loan balances after 10 years of payments rather than 20 years under many income-driven repayment plans for borrowers with original loan balances of $12,000 or less, the department said.

.nba
nba
nba
nba
nba
matchmatch
matchmatch
matchmatch
matchmatch
matchmatch
snapshat
snapshat
snapshat
snapshat
snapshat
Webtoon
Webtoon
Webtoon
Webtoon
Webtoon
livu
livu
livu
livu
livu
bigo
bigo
bigo
bigo
bigo
insta
insta
insta
insta
insta
zepeto
zepeto
zepeto
zepeto
zepeto
cookingdiary
cookingdiary
cookingdiary
cookingdiary
cookingdiary
bingo
bingo
bingo
bingo
bingo

Leave a Reply

Your email address will not be published.