Biden Unveils Student Loan Debt Relief Program

The New York Times reports:

President Biden announced on Wednesday that he would cancel $10,000 in student loan debt for Americans earning less than $125,000 per year, capping months of anticipation over a campaign promise to provide economic relief to millions of people, according to four people familiar with the announcement.

Mr. Biden also extended a pandemic-era pause on loan payments until the end of the year. It has been in effect since March 2020.

Mr. Biden also said those with undergraduate loans would be able to cap their payments at 5 percent of their monthly income, a change that could significantly reduce bills for millions of borrowers. The government’s current income-driven plans generally cap payments at 10 percent of a borrower’s discretionary income.

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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