Washington: US President Joe Biden has made a big announcement giving relief to American students. Student loans will be forgiven for US students whose annual income is less than $1,25,000. Reducing student loans was a big election promise of the Biden administration.
US President Joe Biden tweeted, ‘Going to fulfill the promise I made in the elections. We are going to waive or cut some American student loans in January 2023 to give some relief to the middle class.
These are the conditions for relief in student loan
According to the report in ‘The New York Times’, the student loan waiver has been announced with some conditions. If you went to college on a Pell Grant, you’d get $20,000 off. If you didn’t take advantage of the Pell Grant, you’ll only get a $10,000 discount. Even on that, this exemption will be available only to those people whose annual income is less than $ 125,000.
Declaration of reduction in loan repayment till December 2022
At the same time, the Biden administration has reduced the loan payment till December 2022. No loan will have to be given till 31st December 2022. Even after this, if you deposit a loan, then that loan you will have to deposit only 5 percent of your income. That is, if your income is Rs 100 per month, then you will only need to deposit the loan installment of Rs 5 only.
More than 43 million Americans have student loans
According to statistics, more than 43 million Americans have student loans, with almost a third less than US$10,000 and more than half under US$20,000. At the same time, some of the loan payments were frozen during the Corona period. Schools in the president’s home state were chosen by the Biden administration to announce loan relief, but the program was later canceled.
Fear of political loss
Biden, on the other hand, had previously feared political damage from student loan relief, as he faced more progressive Elizabeth Warren and Bernie Sanders in the polls. Both of them had proposed to cancel loans up to USD 50,000 or more in 2020. At the same time, during the elections, Biden gave up to $ 10,000 to every loanee American without specifying the income cap.
