By: Economic & Finance Report
On Wednesday, August 24, 2022; U.S. President Joe Biden canceled federal loan debt accumulated by past and present college students, in the United States. Certain borrowers will have their federal student loans forgiven, from up to $10,000. Other recipients will have $20,000 student loan debt forgiven, if they are Pell Grants recipients. The Biden Administration will also extend payment pause on student loans until December 31, 2022.
Couples who file jointly and earn less than $250k a year, will qualify for cancellation up to $10,000 for each partner. Individual filers will have up to $10,000 for each person. Democrats have been pressing President Biden to keep his campaign promise of canceling student loan debt. Many Democrats and people alike, wanted Mr. Biden to cancel up to $50,000 worth in student loans; but the White House indicated the President was willing to adhere to $10,000 of student loans cancelations.
It is estimated that over 45 million Americans have student loan debt, and the U.S. Federal Reserve has stated that Americans owe 1.7 trillion dollars’ worth in student loans. The majority of Americans that are student loan debt holders, are African Americans and people of color. -SB
Image Source: Forbes