President Joe Biden has announced a $10,000 loan waiver for the education of students from low-income families whose annual income is less than $125,000 or a couple less than $250,000.
BBC reported that he announced this at the White House on Wednesday.
Biden has announced loan waivers of up to 20,000 US dollars for students who will suffer from severe financial crisis. And students who didn’t get the grant will get $10,000 loan waiver.
In a response at the White House on Wednesday, Biden said, as a result of his plan, the middle class and working people will breathe a sigh of relief. Due to the debt burden is very high. A student with a college degree may not enter middle class life.
“This loan waiver will free the people from the huge debt burden”.
At this time he remembered his father who was a car dealer. Because his father had to struggle to meet the children’s education expenses.
Responding to criticism of his plan, Biden said no high-income families would benefit from the debt relief measures.
“I will never apologize for helping working Americans and the middle class, especially not the people who voted for the $2 trillion tax cut. which mainly benefited wealthy Americans and the largest corporations.”
He said this while pointing to the tax relief legislation that Republicans passed under former US President Donald Trump.
According to the country’s statistics, about 4.3 million people take 1.6 trillion in education loans. About one-fifth of them take loans below 10,000.
Student loan forgiveness has been a debate between the White House and members of progressive Democrats for more than a year. Some of the top Democrats were in favor of debt cancellation.
Some Republicans, however, have questioned whether Biden has the legal authority to cancel the debt.
But White House press secretary Karin Jean-Pierre told reporters the administration has the legal authority to forgive debt under the law during emergencies like pandemics.
And a few weeks later, the country will hold midterm elections. Analysts believe that Biden’s debt waiver announcement will have a big impact before that.