Yesterday, President Biden announced a plan to cancel $10,000 of student debt for individuals earning less than $125,000 a year. The plan also includes $20,000 of debt cancellation for Pell Grant recipients. The amount of relief the Biden Administration is offering, however, is significantly less than what some Democrats were pushing for according to a report from the New York Times.

“‘All of this means people can [finally start] to climb out from under that mountain of debt,” [President] Biden said in remarks from the White House. “To finally think about buying a home or starting a family or starting a business. And by the way, when this happens, the whole economy is better off.’
[President] Biden also announced that a pandemic-era pause on student loan payments, which has been in effect since March 2020, would expire at the end of the year. The timing for the debt relief is uncertain; the Department of Education said it would set up an application process by the end of the year.
Across the United States, 45 million people owe $1.6 trillion for federal loans taken out for college — more than they owe on car loans, credit cards or any consumer debt other than mortgages.”

This is a HUGE step toward full federal student loan cancellation, but there’s still a lot of work to be done. We’re ready to advocate for complete cancellation WITHOUT means-testing on behalf of over 46 million borrowers crippled by student debt. Biden’s plan will only make a dent in the growing economic crisis, but we’re optimistic that this is just the beginning.

Debt cancellation is already means-tested. The richest among us can afford to pay off their debt, and debt cancellation typically benefits low and middle-income borrowers who don’t have the means to do so. While we fight for a more inclusive response from the White House, Debtless will continue to provide debt cancellation for EVERYONE regardless of their financial status.

Read the full article here.