Wednesday, August 24, 2022

President Biden Announces Student Debt Cancellation Of Up To $20,000

Now on to the mid-term elections,* with, I'm sure, a brief stop at a courtroom or five to challenge the legality of the unilateral executive order.

From Forbes, August 24:

Biden Announces Historic Student Loan Forgiveness Of Up To $20,000 And Extension Of Student Loan Pause: Key Details

President Biden on Wednesday made a long-awaited announcement to enact wide-scale student loan forgiveness. Biden also indicated he would extend the ongoing student loan pause once more. Millions of student loan borrowers will benefit from these initiatives.

Biden will be issuing further details later this afternoon. Here are the details so far.

 Biden Announces Up To $20,000 in Broad Student Loan Forgiveness

Biden announced that he will be using executive action to implement a broad student loan forgiveness initiative that will wipe out $10,000 in federal student loan debt for borrowers earning less than $125,000 per year (or $250,000 per year if they are married). No comparable student debt cancellation program has ever been enacted before. 

$10,000 in student loan forgiveness for most borrowers would eliminate the student debt for 16 million borrowers, according to the Center for American Progress. Nearly one in three student loan borrowers would have their student debt completely wiped out through this initiative. 

Biden’s announcement also includes additional relief for Pell Grant recipients. Pell Grants are a form of federal financial aid, issued to lower-income students, that does not have to be repaid. Federal student loan borrowers who earn below $125,000 per year (or $250,000 per year if they are married) and who received Pell Grants as part of their financial aid package could get up to $20,000 in federal student loan forgiveness....

*Bringing to mind an episode of The Simpsons starring Kang and Kodos Johnson (episode 4F02 "Treehouse of Horrors VII"):
Kang on politics:
Kang: Abortions for all.
[crowd boos]
Very well, no abortions for anyone.
[crowd boos]
Hmm... Abortions for some, miniature American flags for others.
[crowd cheers and waves miniature flags]

Kodos on P.R. spin:
One night, Springfield holds a Dole-Clinton debate. Clinton is giving
the opening speech:

My fellow Americans. As a young boy, I dreamed of being a baseball, but tonight I say,
we must move forward, not backward, upward not forward,
and always twirling, twirling, twirling towards freedom.