What Biden’s Student Loan Forgiveness Means for America

Like crumbling infrastructure or rising gas prices, student loan forgiveness is one of those far-reaching political issues affecting many Americans. Close to 1 in 5 Americans have student loans. That’s some 45 million people with a combined $1.75 trillion student loan debt. What heppens now? Keep reading.

The Biden administration’s forgiveness plan is expected to have a far-reaching impact. It will relieve $10,000 in loan debt per federal borrower with an individual income under $125,000 and a household income under $250,000; it will provide $20,000 in relief for borrowers that attended college on income-based Pell Grants.

One-third of federal borrowers would see their debt completely forgiven

Even with $10,000 of student loan forgiveness per federal borrower, most Americans with student loans will still have some debt to repay.

Over the past several decades, the cost of attending college in the U.S. has steadily risen largely due to a reduction in state funding, an increase in university amenities, and unprecedented demand from prospective students.

The rising cost of tuition has made it harder for students and families to pay for college

If a student doesn’t want to take on debt, federal grants—financial aid that doesn’t need to be repaid—are an attractive alternative. The problem? The amount of federal grant money available

Average federal loan packages have grown faster than the average grant size

Today, loans are one of the most widely distributed forms of federal aid

For students who don’t come from families that can cover the cost of undergraduate education, navigating the financial aid application process can be challenging and confusing.

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