Friday, September 20

Biden will ask for immediate forgiveness of $ 10,000 of student debt

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President Joe Biden will ask Congress to immediately cancel $ 10, 000 dollars of student debt to support the crisis caused by the pandemic Attention to the issue of student loans was one of Joe Biden’s campaign promises. Photo: Joe Raedle / Getty Images

One time to assume the presidency Joe Biden will ask Congress to immediately cancel $ 10, 000 debt student for all borrowers, in support of the economy that has been affected by the Covid- 19 , revealed this Friday David Kamin , of the transition team.

He commented that in addition Biden will order the Department of Education to extend the payment pause that is scheduled to expire this month , as well as the inter It affects million Americans with federal student loans .

Kamin added that in the next administration will improve the payment programs based on income, in addition to “fix and expand the loan forgiveness programs for those with public service”.

No further details were released about the duration of the extension and if it will be suspended all types of debt collection , but yes that from the first day that the president Biden arrives at the White House will make decisions in this area, as it came promising in campaign .

The topic is very relevant because the financial aid package approved in December did not include an extension of the pause of payment for student loan debtors , valid since March and that expires at the end of the month .

The news is encouraging for many borrowers who have not been able to make their payments . A Pew survey revealed that around 90%, of loan applicants feds for students have taken advantage of the government’s option to pause their payments during the pandemic and that 6 of each 10 borrowers assured that it would be difficult for them to start paying your student loan bills back in the next month .

We will have to wait for Biden becomes president to find out how this support is approved, if it is done through the Congress or through a executive action .

With information from CNBC and Yahoo! Finance

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