US President Joe Biden has announced one of his campaign promises, which is to pay off $10,000 of student loan debt to everyone who earns less than $125,000 a year. In the case of those who went to university with public aid, the debt cancellation will be $20,000.
“In keeping with my campaign promise, my Administration is announcing a plan to give working and middle-class families a break as they prepare to resume federal student loan payments in January 2023,” the president announced. The president has extended the student loan suspension through December 2022, which has been in place since 2020 as a pandemic relief measure.
The president has also announced that people who carry this debt will be able to put a maximum limit on their installments of 5% of their monthly income.
A group of senators from the Democratic Party and organizations representing racial minorities had been pressing Biden for months to forgive all or at least part of the student debt.
The leader of the Democrats in the Senate, Chuck Schumer, and the progressive senator Elizabeth Warren have celebrated Biden’s decision in a joint statement and have pointed out that no US president has done so much to alleviate the burden that weighs on many university students.
Despite the congratulations, both Schumer and Warren had asked Biden to forgive students more than $10,000, since in some cases debts can exceed $100,000 and even $200,000.
For its part, the National Association for the Advancement of Colored People (NAACP), the main US group in defense of African Americans, has considered that the announcement is not enough and has recalled that the black community has been disproportionately affected. because of the student debt problem.