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Biden Administration Announces Student Debt Relief
Approval of 12 Billion in Student Debt Cancellation
Today, President Biden announced the approval of 12 billion in student debt cancellation for approximately 153,000 borrowers currently enrolled in higher education.
Proposed 20,000 Dollar Debt Cancellation
President Biden unveiled plans that, if approved, would cancel up to 20,000 dollars of a borrower's current balance. This proposal aims to provide relief for millions of Americans struggling with student debt.
Additional 77 Billion in Student Loan Debt Relief
The Biden-Harris Administration also announced the approval of an additional 77 billion dollars in student loan debt relief, benefiting 160,500 individuals.
Three-Part Plan for Student Loan Forgiveness
President Biden outlined a three-part plan to address student loan debt, including canceling 10,000 dollars for low- to middle-income borrowers.
Part One: Immediate Debt Cancellation
The first part of the plan involves immediate cancellation of up to 20,000 dollars in student debt for Pell Grant recipients and up to 10,000 dollars for other borrowers with federal loan balances below 125,000 dollars.
Part Two: Income-Driven Repayment
The second part introduces a new income-driven repayment plan that caps monthly payments at 5% of a borrower's discretionary income, down from the current 10%.
Part Three: Public Service Loan Forgiveness
The final part of the plan overhauls the Public Service Loan Forgiveness program, making it easier for borrowers who work in public service to qualify for loan forgiveness.
This comprehensive plan reflects President Biden's commitment to addressing the student loan debt crisis and providing financial relief to millions of Americans.
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