Mr Biden's debt forgiveness plan comes after months of deliberations over fairness and fears that the plan could make inflation worse ahead of the midterm elections.
abc.net.au/news/us-biden-student-loan-forgiveness-could-help-millions/101370008US President Joe Biden has announced a plan that could see student loan debts reduced — and in many cases eliminated — for more than 40 million Americans, a historic but politically divisive move in the run-up to the midterm elections.
Republicans quickly denounced the plan as an insult to Americans who have repaid their debt and to those who didn't attend university.Critics across the political spectrum also questioned whether Mr Biden has authority for the move. Legal challenges are virtually certain. The cancellation applies to federal student loans used to attend undergraduate and graduate school, along with Parent Plus loans.Current university students qualify if their loans were issued before July 1. For dependent students, their parents' household income must be below $250,000.
As a black woman, she said higher education was a requirement to obtain a more stable financial future, even if that meant taking on large amounts of debt. The proposal would create a new payment plan requiring borrowers to pay no more than 5 per cent of their earnings, down from 10 per cent in similar existing plans.
Mr Biden's plan comes after more than a year of deliberation, with the president facing strong lobbying from liberals who wanted sweeping debt forgiveness, and from moderates and conservatives who questioned its basic fairness.
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