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.

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