It was one of his campaign promises: US President Joe Biden announced on Wednesday August 24 that he would partially cancel student loans, a much-anticipated decision in a country where a year at university costs tens of thousands. Dollars.
“As per my campaign promise, my administration is announcing a plan to provide retirement to working-class and middle-class families as they prepare to repay federal student loans in January 2023.”Mr. Biden tweeted.
The measure applies to people earning less than $125,000 a year. According to an illustration accompanying the president’s tweet. It would be a question of destroying $10,000 to pay for expenses related to their university studies for people who do not benefit from federal scholarships; $20,000 for those who received one of the more modest means.
Fulfilling my campaign promise, my administration is announcing a plan to give working and middle-class families… https://t.co/dH6UYlnKej
The president also extended a moratorium on federal student loan repayments “Last Time” By the end of 2022.
20 million people are affected
Democratic Senators Chuck Schumer and Elizabeth Warren praised in a joint statement, “A Giant Step to Solving the Student Loan Crisis”. Instead, Rona McDaniel, chairwoman of the Republican National Committee, ruled that the move. “Americans who saved for college or chose other careers were unfairly penalized”.
In 2019, about 45 million Americans contracted $1.6 trillion in debt to pay for their higher education. This amount, multiplied by nearly three times over a twelve-year period, is more than the debt attached to credit cards (approximately 1,000 billion). Upon graduation, each borrower owes an average of $32,000.
Nearly a third of borrowers owe less than $10,000 and half owe less than $20,000. Mr. The White House estimated that the measure announced by Biden would wipe out about 20 million people’s federal student loans.
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