Progressives hail Biden for action on student loans
by Hanna Trudo and Alex Gangitano - 08/24/22 2:48 PM ET
Progressives are praising President Biden’s plan on student loans, arguing the move to provide $20,000 in relief to Pell Grant recipients in particular is a real step toward helping the most needy deal with crippling college debt.
Biden is canceling up to $10,000 in debt for single people making less than $125,000 annually in addition to the $20,000 in relief for those who received the need-based program.
The extra relief for the Pell Grant group was somewhat of a surprise that sweetened the pot for liberals, who had been calling for as much as $50,000 in debt forgiveness per borrower.
“Today’s announcement marks a historic moment in the long fight to end the student debt crisis,” said Natalia Abrams, president of the Student Debt Crisis Center. “Broad-based student debt cancellation will free millions of Americans to invest in their futures, support their families, and contribute to their communities and the economy.”
“Today is a day of joy and relief,” Sen. Elizabeth Warren (D-Mass.) tweeted after the announcement.
She had introduced the idea of loan forgiveness during the 2020 presidential campaign and got Senate Majority Leader Charles Schumer (D-N.Y.) on her side to convince administration officials to take the issue seriously. Schumer was on the phone discussing details with the White House up until the final decision.
Left-wing lawmakers and activists see the move as a positive, necessary step of action before the midterms. By forgiving large portions of Americans’ loans, Biden moved closer to becoming the progressive leader that he promised to voters, they said, following through on a campaign pledge.
Biden’s sweeping plan unveiled officially on Wednesday is the largest forgiveness of federal student loans per person yet. Heeding calls from progressives, he also extended the ongoing federal loan payment freeze and interest accrual until the last day of the year.
The White House announced that borrowers with existing undergraduate loans can cap repayment at 5 percent of their monthly income. Under his policy, current students with loans are eligible for this debt relief and dependent students will be allowed relief based on their parents’ income.
The Hill reported the news of the planned executive actions and timing on Tuesday.
Biden still didn’t go as far as some wished, but the complaints were relatively muted just before the official rollout.
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https://thehill.com/homenews/administration/3614316-progressives-hail-biden-for-action-on-student-loans/