Students Aided by Presidents Promise 

Bree Dowds

Aug 26, 2022

Wednesday, August 24, a press release from the White House addressed student loan relief. President Biden’s campaign promised a three-part plan to aid students, ensuring their monthly payments are achievable. Overpriced student loan payments have brought distress to middle-class families across the nation. The student forgiveness plan demands opportunity and a breathable future for those facing debt. 

Biden states, “[We] provide more breathing room for people, so they have less burden by student debt.” 

The Department of Education has declared they will supply up to $20,000 in debt cancellation to students receiving the Pell grant. Non-Pell grant recipients can obtain up to $10,000 to help with financial distress. Individuals are eligible for this relief if their income is less than $125,000 or $250,000 for married couples. As a result of this revised repayment plan, the average student loan payment will decrease by more than $1,000 for current and future loan recipients. In addition, President Biden is working to double the maximum Pell grant amount and coerce free community college. Colleges will be responsible for providing reasonable prices to reflect these updated guidelines. 

“No high-income individual, or high-income household, on the top of 5%, and the top 5% of income, by the way, will benefit from this action,” Biden declared. 

The Student Loan Relief Bill will provide consolation to 43 million borrowers of all ages. The Department of Education will create payment plans based on income. The Federal Student Loan Repayment pause is extended to Dec 31, 2022, and payments resume in January 2023.

For undergraduate loans, the relief will decrease by half of the current monthly payments. However, enrollment is required. Beginning in summer 2023, recipients can grant the Department of Education access to their income information yearly, ensuring a smooth transition. 

For more information, visit https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/.