The Biden administration announced it will forgive around $500 billion in student debt. Up to $20,000 in debt will be forgiven for Pell Grant recipients and $10,000 for other borrowers.
Additionally, borrowers whose income used to be under $125,000 ($250,000 if married) in either 2020 or 2021 will be eligible for this.
You can find all the objectives in the Fact Sheet. It says they want to target relief on low- and middle-income borrowers—particularly Black borrowers, borrowers who didn't get a degree, and those who have defaulted on their student loans.
There is zero doubt that these borrowers struggle the most with their loans and represent the most disadvantaged groups of borrowers.
However, President Joe Biden's plan to forgive billions of dollars in student loan debt has been facing its first serious legal challenge alleging it violates federal law and the Constitution, according to a lawsuit filed by the Pacific Legal Foundation.
The PLF, a libertarian law firm, asked a judge in the District Court for the Southern District of Indiana to place a restraining order on the Biden administration's plan, which seeks to cancel up to $20,000 in student loan debt per person for more than 40 million borrowers.
In a statement, Foxx blasted the Biden administration, saying the White House had "lost all sense of fiscal responsibility" because it did not incorporate "this administration's other efforts to transfer wealth from college graduates to hardworking taxpayers who never set foot on a college campus."
"Rather than working with Congress to bring down college costs, President Biden has opted to bury the American people under our unsustainable debt," Foxx said in a statement.