The Biden Administration Just Announced Sweeping Student Loan Debt Cancellation

Of the 43 million Americans who have student loan debt, nearly a third owe less than $10,000.

You're welcome, fellow kids.Shawn Thew/Pool/CNP/Zuma

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More than two years after Joe Biden first floated the idea on the campaign trail, the president finally announced a sweeping student loan forgiveness plan that will relieve the debt burdens of millions of Americans.

Biden said on Wednesday that he would forgive up to $10,000 in student loans for borrowers who make less than $125,000 a year, or households that make less than $250,000. Students who have received Pell Grants can expect up to $20,000 in loan forgiveness. He also announced that the current pause on student loan payments, which was set to lapse on Aug. 31, will continue until January.

Of the 43 million Americans who have student loan debt, nearly a third owe less than $10,000, and more than half owe less than $20,000, according to the Associated Press. In addition to dramatically decreasing the financial burden for a huge portion of voters, the decision is expected to boost Biden’s support among younger voters, whose opinion of him has recently soured

Still, the decision has critics on both sides of the aisle. Some progressives, have argued that the $10,000 in forgiveness is not enough. Others find the idea unfair to those who don’t have college degrees, or who have already paid off their debt.

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Fact:

In-depth journalism that investigates the powerful takes real money and is so damn important right now.But it doesn’t take a Mother Jones investigation to know that billionaires and corporations will never fund the type of reporting (like they do politicians) we do that exists to help bring about change. Instead, our mission-driven journalism is made possible by people power, and has been for 46 years now since our founding as a non-profit.

In “TITLE TK” Monica Bauerlein writes about the perilous moment we’re in, and why it’s so important that we raise $325,000 by the time November’s midterms are decided so we can be ready to throw everything we have at the big issues facing the nation no matter what happens. Please help MoJo’s people-powered journalism with a donation today.

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