Biden Cancels $12 Billion in Student Debt, Six Months Ahead of Schedule
Supreme Court to Rule on Biden's Student Loan Plan
President Biden has canceled $12 billion in student debt for over 400,000 Americans, six months ahead of the original repayment deadline. This action is part of Biden's broader plan to address the rising cost of higher education and provide relief to struggling borrowers.
Debt Forgiveness Details
The debt forgiveness applies to borrowers who received Pell Grants, federal grants awarded to low-income students. Up to $10,000 of student debt is canceled for single filers earning less than $125,000 and married couples earning less than $250,000. Borrowers may receive an additional $10,000 in forgiveness if they meet certain requirements, such as attending a Historically Black College or University (HBCU) or other minority-serving institution.
Impact on Borrowers
The debt forgiveness will provide significant relief to borrowers facing financial hardship. According to the Education Department, 90% of those eligible for forgiveness earn less than $75,000 per year. The forgiven debt will free up funds for essential expenses, such as housing, healthcare, and childcare.
Supreme Court Review
The Biden administration's student loan forgiveness plan is currently facing legal challenges in the Supreme Court. The court is expected to issue a ruling this month on whether the plan exceeds the president's executive authority. If the plan is upheld, it will provide additional relief to millions of borrowers across the country.
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