WASHINGTON: US President Joe Biden has announced his government will forgive at least $10,000 in student loans for many debt-laden university graduates in the United States, in a move that progressive activists and lawmakers welcomed but said does not go far enough.
In a tweet on Wednesday morning, Biden said students who received federal Pell Grants for lower-income families would get $20,000 in debt forgiveness, while those who did not would get $10,000. The relief only applies to those earning less than $125,000 annually, he said.
“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,” said Biden, who is expected to speak to reporters later in the day.
The forgiveness could impact 8 million borrowers automatically, the Department of Education said, while others would need to apply.
Members of Biden’s own Democratic Party have pushed him to forgive as much as $50,000 per borrower, arguing that the debt makes it impossible for younger Americans to save for down payments on a home or other big consumer purchases. Republicans have argued the move will disproportionately help people earning higher incomes. –Agencies
