Biden exceeds expectations with student debt relief announcement

[babylonsister]

Biden exceeds expectations with student debt relief announcement
Laura Clawson
Daily Kos Staff
Wednesday August 24, 2022 · 3:09 PM EDT
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President Joe Biden finally announced his student debt relief plan on Wednesday, and it exceeds the expectations of recent reports on his thinking. Biden will cancel up to $10,000 in debt for all student borrowers with incomes under $125,000 ($250,000 for married couples). That number had been widely reported. But in addition, Biden is cancelling up to $20,000 for Pell Grant recipients at the same income levels. Biden also extended the pause on federal student loan payments for a “final time,” until December 31.

Biden opened his remarks by noting that 12 years of universal free education had at one point made the United States a world leader, but that 12 years was no longer enough, leaving the U.S. in danger of being outcompeted by other nations. Pell Grants, he noted, have fallen from once covering 80% of public college tuition to just over 30% today. That’s an important part of the backdrop for the student debt crisis.
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“An entire generation is now saddled with unsustainable debt,” Biden said, putting home ownership, starting a business, and even starting a family out of reach. “About a third of the borrowers,” he said, “have debt but no degree,” calling it “the worst of both worlds.”

A majority of people receiving debt relief qualified for Pell Grants and will have $20,000 forgiven, Biden said. Biden’s moves could completely wipe clean student debt for 20 million out of the 43 million eligible people, according to administration figures cited by Biden and reported by The Washington Post, with 90% of relief going to people earning less than $75,000. Thanks to the foresight of Senate Democrats in crafting the American Rescue Plan in 2021, student debt forgiveness will not count as taxable income.

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https://www.dailykos.com/stories/2022/8/24/2118485/-Biden-announces-student-debt-relief-package-that-will-change-millions-of-lives

[PortTack]

1. Kudos to dark Brandon!!!