Biden cancels $ 10,000 in student debt for college

WASHINGTON. Joe Biden cancels up to $ 10,000 in a federal college loan for those earning less than $ 125,000 a year (or $ 250,000 if it’s a family), a cut that doubles for the Pells Grants (reserved for students in low income), and extends the moratorium on payments introduced during the pandemic until the end of the year. This was announced by the White House after months of discussions over the fear of rising inflation before Midterm. A maneuver that will affect millions of students and cost taxpayers around $ 300 billion.
“In keeping with my campaign promise, my administration announces a plan to give working families and the middle class time to breathe as they prepare to resume federal loan payments in January 2023,” Biden tweeted. details of the maneuver. For loan payments there is also a ceiling of 5% on monthly income, against generally 10%. There are an estimated 45 million people in the US who hold a combined $ 1.6 trillion in federal college loans, more than any type of loan (cars or other consumer goods). The White House believes 90% of the benefits will go to families earning $ 75,000 or less a year.