President Joe Biden is set to cancel up to $10,000 in student loan debt for certain borrowers who earn $125,000 a year or less and up to $20k for Pell Grant recipients.
Biden shares via Twitter, “in keeping with my campaign promise, my Administration is announcing a plan to give working- and middle-class families breathing room as they prepare to resume federal student loan payments in January 2023.”
It’s also being reported that those with undergraduate loans would be able to cap their payments at 5 percent of their monthly income. “That’s a lot of young people that are going to be able to have a sigh of relief,” Representative Tony Cárdenas said, “that are going to be able to look forward to buying a house soon; they could look forward to starting a family sooner.”
“While this announcement is a major win for many, it is important to stress that $10,000 will leave many others still crushed by debt, and important details will determine who has access to much-needed relief,” said Natalia Abrams, the president and founder of the Student Debt Crisis Center.