Biden announces new student debt cancellation plan

The Biden administration announced it new student debt cancellation plan. Under the new plan, individuals earning less than $125,000 (or $250,000 for families) will have up to $10,000 in federal student debt canceled and recipients of Pell Grants will be able to cancel up to $20,000.

According to a press release, the Biden administration enacted the final extension of the student loan repayment pause through the end of the year with repayment beginning in January 2023

“The president’s decision today to reduce the outrageous level of student debt in our country is an important step forward in providing real financial help to a struggling middle class,” Sen. Bernie Sanders (I-Vt.) said.

This plan will eliminate student debt for near 20 million Americans and reduce debt for another 43 million people, a press release from Senator Bernie Sanders’ website reported.

“In the year 2022, in the wealthiest country on earth, everyone in America who wants a higher education should be able to get that education without going into debt,” Sen. Sanders said.

While advocates for student loan cancellation applauded the Biden administration’s plan to address the student debt crisis in the United States, many groups believe the government needs to do more to continue to compete in the global economy.

applauded the Biden administration’s plan to address the student debt crisis in the United States, they believe the government needs to do more to continue to compete in the global economy.

“Not only does this action begin to address the student debt crisis, it also sets an important precedent that the government can—and should—intervene to fix the broken systems that hold people back,” Dr. Rakeen Mabud, chief economist and managing director of the Groundwork Collaborative, said. “But we can’t stop here: More work is needed to end the student debt crisis, guarantee access to free college, close the racial wealth gap, and continue to build an economy where everyone can thrive.” 

“At a time of massive income and wealth inequality, education, from pre-school through graduate school, must be a fundamental right for all, not a privilege for the wealthy few,” Sen. Sanders said.