Washington. US President Joe Biden has made a big announcement giving relief in US student loans. American students whose annual income is less than $1,25,000 will have their student loans forgiven. Student loan cuts were a major election debate of the Biden administration.
US President Joe Biden tweeted, ‘I am going to fulfill the promises made in the election. We are going to cut some US student loan waivers in January 2023 to give some relief to the middle class.
Here are the Terms of Living in Student Loans
According to the report of ‘New York Times’, student loan waiver has been announced with certain conditions. If you go to college on a Pell Grant, you get a $20,000 discount. If you haven’t taken advantage of the Pell Grant, you’ll get this $10,000 discount. However, the exemption is only available to those with an annual income of less than $125,000.
In keeping with my campaign promise, my administration is announcing plans to give working and middle-class families breathing space 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) 24 August 2022
Declaration of reduction in loan repayment by December 2022
At the same time, the Biden administration has reduced debt payments until December 2022. No loan will be disbursed till 31st December 2022. Even after this, if you apply for the loan, then you will have to deposit 5% of your income for that loan. That is, if your income is Rs 100 per month, then you will have to deposit only Rs 5 as loan installment.
More than 43 million Americans have student loans
According to statistics, more than 43 million Americans have student loans, nearly a third have less than $10,000 and more than half have less than $20,000. At the same time, the loan payment was banned during the Corona period. The Biden administration chose schools in the president’s home state to announce the loan, but the program was later canceled.
fear of political loss
At the same time, Biden previously feared political damage from living on student loans, as he faces Elizabeth Warren and Bernie Sanders in the polls, considered more progressive than him. Both proposed eliminating debt of USD 50,000 or more in 2020. At the same time, during the election, Biden proposed to cancel the debt of up to $ 10,000 for every American who took the loan without specifying the I cap.
Democrats now believe Biden’s announcement will help attract younger voters.
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tags: america, Joe Biden
First Published: 25 August 2022, 07:51 IST
