Biden Announces Long-Awaited Student Debt Forgiveness Plan

President Biden announced a student loan forgiveness plan, offering up to $10,000 for non-Pell Grant recipients and $20,000 for Pell Grant recipients, targeting those earning less than $125,000 annually. The plan affects 43 million borrowers, with 20 million potentially having their debt erased. An application process will be available before the payment pause ends on December 31st. The plan has faced criticism from both political sides, with concerns about inflation and deficit impacts. The White House compares it to pandemic relief loans, emphasizing its neutral inflation effect.

What is the maximum amount of student loan forgiveness available for Pell Grant recipients under President Biden's plan?

• $5,000

• $10,000

• $20,000

• $15,000

How many people could potentially benefit from the student loan forgiveness plan?

• 10 million

• 20 million

• 43 million

• 50 million

When is the application process for loan forgiveness expected to be available?

• In the next fiscal year

• After January 1st

• No specific date announced

• Before December 31st

What is a concern raised by Republicans regarding the student loan forgiveness plan?

• It will only benefit a few people

• It will have no effect on the economy

• It will increase inflation

• It will decrease inflation

Which political figure expressed that the plan did not go far enough?

• Senator Ted Cruz

• Senator Elizabeth Warren

• Senator Mitch McConnell

• Senator Bernie Sanders

What is the White House's stance on the plan's effect on inflation?

• It will have a neutral or deflationary effect

• It will decrease inflation significantly

• It will cause hyperinflation

• It will increase inflation

How does the White House compare the student loan forgiveness to other financial relief efforts?

• It is less effective than pandemic relief loans

• It is similar to pandemic relief loans

• It is unrelated to pandemic relief loans

• It is more beneficial than pandemic relief loans