President Biden Announces Student Loan Relief for Those Who Need it Most

Excerpts from White House Fact Sheet dated August 24, 2022 -- see complete document and helpful charts at this link:

Since 1980, the total cost of both four-year public and four-year private college has nearly tripled, even after accounting for inflation. Federal support has not kept up: Pell Grants once covered nearly 80 percent of the cost of a four-year public college degree for students from working families, but now only cover a third. That has left many students from low- and middle-income families with no choice but to borrow if they want to get a degree. According to a Department of Education analysis, the typical undergraduate student with loans now graduates with nearly $25,000 in debt.

On August 24, 2022, President Biden announced a three-part plan to provide more breathing room to America’s working families as they continue to recover from the strains associated with the COVID-19 pandemic.

This plan offers targeted debt relief as part of a comprehensive effort to address the burden of growing college costs and make the student loan system more manageable for working families.

Eligible individuals will be with incomes no more than $125,000 (90% will go to persons with no more than $75,000 in income). Amounts of debt forgiveness is up to $20,000 for Pell Grant recipients and up to $10,000 for non-Pell recipients.

This plan will provide relief to up to 43 million borrowers. Such relief is to help borrowers of all ages.  The plan will advance racial equity since many of the borrowers in the eligible categories are black or other minorities.

This plan also makes the student loan system more manageable for current and future. borrowers.

To see all the amazing details please see this link.