This is amazing news! President Joe Biden has announced that he will be canceling $10,000 in student loan debt for borrowers making less than $125k a year. Along with this cancellation, he will extend loan payments to the end of the year.
“In keeping with my campaign promise, my Administration is announcing a plan to give working and middle-class families breathing room as they prepare to resume federal student loan payments in January 2023,” President Biden wrote in a Twitter post.
In keeping with my campaign promise, my Administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023.
I'll have more details this afternoon. pic.twitter.com/kuZNqoMe4I
— President Biden (@POTUS) August 24, 2022
He also announced that students with undergraduate loans will be able to cap their payments at 5% of their monthly income as a way to reduce bills for many borrowers. This debt forgiveness plan comes months after deliberations over the fears of inflation and Biden saying that he won’t extend the student debt relief a few months back.
President Biden said that he will provide more details about this forgiveness plan throughout the day. We will keep you posted with updates.