Within a few short weeks following New Jersey’s decision to eliminate student debt, Washington D.C. is following suit!
A press release from the White House on Wednesday acknowledges the rising costs of tuition, and the number of students who have accumulated debt before receiving their degrees.
It is anticipated that this debt-relief incentive will take a large burden off of students and professionals who have been struggling to pay off student debt – especially over the last few years.
A three-part plan will be rolled out and it’s expected to provide “breathing room” to the country’s working families as they’re getting back up on their feet.
Relief amounts are ranging from $10,000 - $20,000.
The president’s plan focuses on the following main points of the American student debt crisis:
- “Provide targeted debt relief to address the financial harms of the pandemic, fulfilling the President’s campaign commitment.
- Make the student loan system more manageable for current and future borrowers.
- Protect future students and taxpayers by reducing the cost of college and holding schools accountable when they hike up prices.”
Some may remember, that the cancellation of student debt was a big part of President Biden’s campaign when he ran for office in 2020. While doing this is monumental, concerns are surfacing…
People who have already paid off their debt are wondering if they’ll see compensation, and people making over a certain income won’t see any relief.
The debt forgiveness will also be applied to certain demographics of students before others. Recipients of the Pell Grant will be the first to notice any changes that take place.
The debt repayment deadline has been extended a final time to December 31, 2022, and it will take time for the effects of the debt-relief efforts to be felt.