Joe Biden has given a big relief by announcing loan waiver for American graduate students or graduating students.
Announcing the loan waiver, Joe Biden said on Wednesday that American students whose annual income is $ 125,000 or less. That student’s loan of $ 10000 is waived.
However, waiving the loans of the students which was an election promise of the Joe Biden and he has told this by tweeting that In keeping with my campaign promise, our administration is announcing plans to give working and middle-class families breathing space as they prepare to resume federal student loan payments in January 2023.
The US President has announced to waive loans to graduate students with certain conditions.
- Forgiving debt $20000 if you went to college on Pell Grants.
- Forgiving debt $10000 if you didn’t receive Pell Grants.
- 3 Forgiveness only applies to those earning less than $125000.
- Student loan pause extended one final time through Dec 31, 2022.
- If you have undergraduate loans, you can cap repayment at 5% of your monthly income.
For example, if your monthly income is $1000, you may only pay $50.
The Department of Education said it has been approved to receive nearly $10 billion in student loan debt cancellation through a government program designed to encourage more than 175,000 people to work in public service. They said also it would have four “days of activity” before long, pointing to the program “empowering the nation’s community workers to take advantage of temporary changes”. In addition, Biden will send a letter to government representatives on Wednesday educating them about changes to the program and how they can apply.