September 25, 2022

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Student loans are partially forgiven in the US

Student loans are partially forgiven in the US

US President Joe Biden announced on Wednesday that he would cancel some federal student loans, as promised during his campaign. writes that Twitter. Of the millions of Americans who earn less than $125,000 (€125,650) a year, $10,000 in student loans will be forgiven. For those struggling financially, it’s $20,000 (20,103 euros). In addition, the repayment break established due to the corona pandemic will be extended “for the last time” until the end of 2022.

About 43 million Americans struggle with an average of more than $37,600 in student debt per person, which the government says is a “significant burden on America’s middle class.” The White House estimates that about 20 million people will be completely discharged from their student loans as a result of this waiver.

Biden’s announcement has been met with mixed reactions. Many Democrats Prices Senators Chuck Schumer and Elizabeth Warren called the move “a big step forward in tackling the student loan crisis.” The Republican Party is particularly critical. President of the Republican Party Rhona McDaniel, laments that Americans who save for college or choose a different career path are “unfairly” disadvantaged. “As Hard-Working Americans Struggle With Rising Costs and Recession, Biden Gives Hand to the Wealthy.”

Election campaign

During the 2020 presidential campaign, Biden was initially skeptical about canceling student loans, especially with competition within his own party. For his candidacy, he had to compete with progressive candidates like Elizabeth Warren and Bernie Sanders, who proposed a rebate of $50,000 or more.

Biden’s position changed during the election campaign against Donald Trump. To appeal to younger voters, Biden proposed a $10,000 rebate without specifying an income limit.

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