Biden Writes Off $10,000 In Student Debt For Millions

EKO HOT BLOG reports that US President Joe Biden will cancel up to $10,000 (£8,474) in federal student loans for millions of Americans who earn less than $125,000 each year.

Biden will also forgive $20,000 of debt for students on Pell Grants, which applies to those in greatest financial need.

The president will provide the details of his plan at 6pm.

An estimated 43 million Americans owe a combined total of $1.6tn in federal student debt.

Nearly one-fifth owe less than $10,000.

“My administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023,” Biden said on Twitter.

The temporary student loan pause, first put in place in March 2020, will also be extended a final time until 31 December of this year.

The announcement follows more than a year of intense internal White House debate and mounting pressure from progressive Democrats. Top Democrats Senate Majority Leader Chuck Schumer of New York and Senator Elizabeth Warren of Massachusetts, are among those who had pushed Biden to use his executive power to wipe out borrower debts.