Last week, President Biden delivered on his 2020 campaign promise to provide welcome relief to the estimated 43 million Americans weighed down by the twin burdens of predatory student loan practices and the Covid-19 pandemic.
The plan provides for debt cancellation of up to $10,000 for borrowers making under $125,000 a year, with recipients of Pell Grants qualifying for up to $20,000. Nearly 90% of relief dollars will go to individuals earning less than $75,000 a year. In parallel, the ongoing pause on federal loan repayment has been extended through the end of 2022.
The effects for individual recipients are expected to be life-changing and the advancement in racial equity significant. In addition to immediate relief, the three-part plan also changes the terms of federal student loans going forward. Among other measures, monthly payments will be capped at 5% of a borrower’s discretionary income (down from 10%), and institutions of higher education will be held to new standards of accountability for rising tuition costs.
Democrats Abroad is thrilled with this most recent example of Democrats delivering real, material improvement to the lives of the American people. Overseas U.S. citizens who want to find out more about the plan and how they might qualify for debt relief are encouraged to attend our webinar on Thursday, September 15. And don’t forget to request your ballot for November’s midterm elections at www.votefromabroad.org today so that we can keep moving our country forward!