President Biden returned to the White House late Wednesday morning to prepare his announcement of a controversial student loan forgiveness program.
Biden first laid out some basic information in a tweet and promised more details during a speech planned for later in the afternoon.
U.S. Taxpayers will be on the hook for more than $300 billion that will go to forgive up to $20,000 in student loan debt for those who took Pell grant money and $10,000 for those that did not. To be eligible for the program, single borrowers must make less than $125,000 or $250,000 per family.
Some borrowers may have the relief applied automatically if the Department of Education already has their income information. For those without income information on file, the DOE will set up an online application by the end of the year.
The president will also announce an extension to the pandemic-era payment freeze until December 31st. The freeze was set to expire at the end of August.
Exact details, like how to apply, a start date, and the effect the program will have on the deficit and inflation are being kept to a very tight circle within the administration.
According to a recent analysis from the Committee for a Responsible Federal Budget (CRFB), the $10,000 forgiveness plan would undermine the recently passed Inflation Reduction Act by consuming nearly 10 years of deficit reduction and wipe out disinflationary benefits.https://www.foxnews.com/politics/bidens-anticipated-loan-forgiveness-projected-to-cost-american-taxpayers-300b
Another change to student loan repayment being announced today is that the minimum repayment amount is being lowered to 5% of income down from the current 10% level.
The president is scheduled to speak at 2:15 p.m. EDT, but if you don’t want to wait, information is already available on the Federal Student Aid website HERE.
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