Biden to cancel up to $20K in student loan debt, extend pause on payments

WASHINGTON (WLNE) — The Biden administration is has announced a plan that will cancel up to $20,000 in federal student loan debt for individuals making less than $125,000 a year and families making less than $250,000.

President Joe Biden said $10,000 in student loans will be forgiven for borrowers earning $125,000 a year or less and up to $20,000 for recipients of Pell Grants.

An announcement that will have a significant impact on college students in The Ocean State such as Rhode Island College Junior Danielle McDonald.

“Money is one of the biggest things that frustrates me and stresses me out. I’m actually about to take out a loan for the first time. Any assistance will be very helpful and impactful towards my life and take some stress away from me,” McDonald said.

However, one Rhode Island political leader thinks this decision will only add more stress to the economy.

Rhode Island GOP Chair Sue Cienki sent ABC6 the following statement:

“President Biden is using taxpayers hard earned money to pay off other people’s loans. This will further drive skyrocketing inflation upward. Democrats are forcing the transfer of wealth from those that pursued a trade , live frugally to pay off their own debt or chose not to have any debt to those Americans that knowingly chose to take on more debt than they could afford to repay .This is unfair and does nothing to address the rising costs of colleges and universities . Colleges will continue to increase tuition believing the government will just bail out the borrowers again .Hard working taxpayers should not have to bail out the loans of  borrowers just to seduce some voters with hand outs before the midterms .President  Biden is just kneeling down before the progressive left and is doing nothing to lead us out of this  recession and do what is right for Americans. The administration is also extending the payment pause through Dec. 31”

In a tweet, Biden wrote, “In keeping with my campaign promise, 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.”

 

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