In a controversial move, President Joe Biden announced a $300,000,000 plan to eliminate $10,000 in student loan debt for those earning less than $125,000.
The plan also forgives $20,000 in debt for those who secured a Pell Grant to attend college.
CNN reports that the Biden administration had considered the possibility for months and was under pressure from the left to finalize a plan before the midterms in November.
The announcement comes one week before the pandemic-promoted freeze on the repayment of student loans was to end on August 31.
Critics of the plan note that the $300 billion plan comes as the national debt stands at $30.7 trillion — an all-time high — and Democrats recently pushed through a massive $700 billion Inflation Reduction Act bill.
The Biden administration argues that student debt tops $1.6 trillion and represents an unfair burden for the up-and-coming generation.
Biden’s order also caps student loan repayment responsibilities at 5% of one’s monthly income.
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