Wednesday, August 24, 2022

President Biden Announces Student Loan Relief for Borrowers Who Need It Most. Really!

This is anything short of debt cancellation! Another joke by the demented and senile 46th President!

General debt forgiveness is a terrible and unjust measure. It will incentive higher education institutions to raise tuition further like government subsidies and programs!

Would you not say that $125,000 is very high income limit for a single earner? Why did they set the limit much lower (e.g. like $75,000), where it should be! With such a high income limit probably 90% or higher of all students with debt are eligible!

"... Provide targeted debt relief to address the financial harms of the pandemic, fulfilling the President’s campaign commitment. The Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education, and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 ($250,000 for married couples). No high-income individual or high-income household – in the top 5% of incomes – will benefit from this action.  To ensure a smooth transition to repayment and prevent unnecessary defaults, the pause on federal student loan repayment will be extended one final time through December 31, 2022. Borrowers should expect to resume payment in January 2023. ..."

FACT SHEET: President Biden Announces Student Loan Relief for Borrowers Who Need It Most - The White House

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