President Joe Biden announced a sweeping package of student-debt relief that forgives as much as $20,000 in loans for some, a move he said would help a generation “saddled with unsustainable debt.”
According to Bloomberg, “The burden is so heavy that even if you graduate you may not have access to middle-class life that the college degree once provided,” Biden said.
He also announced a four-month extension of the moratorium on student loan repayments, as well as plans to allow borrowers with undergraduate loans to cap repayments at 5% of their monthly income.
The measures seek to make good on a Biden campaign promise and to curry favor with younger and progressive voters, whose support could help Democrats hoping to stave off a loss of their slim House and Senate majorities.
For some of the 45 million Americans with student loans, the package comes as a welcome, if long overdue, relief. For others, it feels like a Band-Aid over a deepening wound, Bloomberg reported.
