While on the presidential campaign trail, much of the POTUS’s platform centered on growing the economy from the bottom up and middle out. Looks like President Biden is making good on his promise based on his latest announcement on student loan relief.
On Wednesday, he discussed his plans to address the country’s massive student loan debt. This includes forgiving $10,000 for borrowers for those earning less than $125,000 per year and extending the payment moratorium until the end of the year. The plan also stipulates that low-income college attendees who qualified for Pell Grants will receive up to $20,000 in student loan forgiveness.
“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 Tweeted just ahead of his public address.
The Department of Education will also announce details student debt relief next month, with the application expected to be available no later than when the pause on repayments terminates at the end of December.
The Education Department released a memo from general counsel Lisa Brown backing President Biden’s actions stating: “In present circumstances, this authority could be used to effectuate a program of categorical debt cancellation directed at addressing the financial harms caused by the COVID-19 pandemic,” Brown wrote. “The Secretary could waive or modify statutory and regulatory provisions to effectuate a certain amount of cancellation for borrowers who have been financially harmed because of the COVID19 pandemic.”