President Biden cancels $74 billion in student loan debt
Biden administration using existing loan forgiveness programs to cancel debt
President Joe Biden announced Friday that he will cancel $74 billion in federal student loan debt, a move that will provide relief to millions of borrowers. The announcement comes as the Biden administration faces pressure to address the rising cost of college and the burden of student loan debt.
The plan includes the following:
- Canceling $10,000 in student loan debt for all borrowers who earn less than $125,000 per year (or $250,000 for married couples).
- Canceling $20,000 in student loan debt for all borrowers who have received Pell Grants.
- Extending the pause on federal student loan payments through the end of the year.
The Biden administration estimates that the plan will provide relief to more than 40 million borrowers. The plan is expected to cost the federal government $39 billion over 10 years.
The announcement has been met with mixed reactions. Some advocates for student loan forgiveness have praised the plan, while others have said it does not go far enough. The plan is also likely to face legal challenges from Republicans who argue that the president does not have the authority to cancel student loan debt without congressional approval.
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