On Aug. 24, President Joe Biden said the U.S. government will forgive $10,000 in student loans for millions of debt-saddled former college studentskeeping a pledge he made in the 2020 campaign for the White House, Reuters noted.
The move was praised by some and criticized by others, with some critics saying the forgiveness could fuel inflation. However, Congressman Mike Quigley (D-Illinois) issued a statement firmly praising Biden.
"For too long, student debt has stood between millions of families and the American dream," Quigley said. "Higher education should be a ticket to the middle class, instead the increasing cost of college has blocked Americans from buying their first home, owning a new car, and even pursuing further education.
"President Biden's announcement today will put the American dream back within reach for millions.
Quigley also noted that Biden's announcement will
Provide up to $20,000 in debt cancellation to Pell Grant recipients and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers who earn less than $125,000 per year or households earning less than $250,000 are eligible for debt cancellation.
Extend the federal student loan pause a final time through December 31, 2022 to provide borrowers a smooth transition back to repayment.
Make the student loan system more manageable for current and future borrowers by cutting monthly payments in half for undergraduate loans and holding schools accountable when they hike up prices.
Borrowers can visit studentaid.gov/debtrelief to sign up to be notified automatically when additional information is available and individuals can apply right until Oct. 31 at PSLF.gov to take advantage of temporary changes to the PSLF (Public Service Loan Forgiveness) program.