Student debt relief has been a part of President Joe Biden’s campaign promise. It has been a known fact that average Americans need to pay for their student debts for almost their entire adult life, and this reality is what turns them off from pursuing higher education after high school.
If you want a college degree, you need to borrow money to get it. Students from low and middle-income families bear the burden of paying student loans that have nearly tripled in cost since 1980. In a study by the Department of Education, a student who graduates from college will have an average of $25,000 in student debt.
President Biden is now making good on his campaign promise by creating a three-part plan to help working families cope with the rising college costs and allow them some breathing space regarding student debt.
If you have loans held by the Department of Education and are a Pell Grant recipient, the student debt relief program can help you with a $20,000 debt cancellation and $10,000 for non-Pell Grant recipients. To be eligible, you must not have an income of more than $125,000 individually or $250,000 for married couples. It is estimated that 90% of the relief program will go to borrowers earning less than $75,000 annually, and no student debt relief will go to the top 5% of incomes in the US.
The Biden Administration’s student debt relief program benefits borrowers in all 50 states. It is expected that about 20 million borrowers will have their entire balance paid from the 40 million borrowers eligible for this student debt relief plan.
This student debt relief program will significantly help American families recover from not only the economic crisis they are facing but also from the crisis brought about by the COVID-19 pandemic. As the resumption of student loan payments begins in January 2023, this student debt program is a welcome relief.
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