How will your student loans be forgiven?

Now that President Joe Biden has announced the cancellation of up to $20,000 in student loans, what’s the next step in getting forgiveness?

Biden’s plan would provide debt cancellation for up to $20,000 in debt cancellation for Pell Grant recipients on loans held by the Department of Education, and up to $10,000 in debt for non-Pell Grant recipients for borrowers with personal incomes below $125,000 Cancel.

Since the Department of Education already has income information, more than 8 million eligible lenders will automatically receive forgiveness. A website with an app will launch in the next few weeks.

Speaking at the White House, Biden said he knew not everyone would be happy with the plan.

“I believe my plan is responsible and fair. It focuses benefits on the middle class and working families. It helps current and future borrowers. It will repair a system that is badly damaged,” Biden said. .

When asked if the program is fair to those struggling to pay off their student loans, the president did not respond.

The moratorium on federal student loan repayments will last until December 31, 2022.

Democrats give thumbs up

The response to the loan forgiveness was in line with Democrats who supported the president’s plan and Republicans who opposed it.

“Today’s action will provide temporary relief to student borrowers,” Senator Jenny Shaheen said on her Twitter account. “But to truly contain this crisis, Congress needs comprehensive legislative action. I am committed to helping student borrowers and ensuring that higher education is affordable for all students.”

Senator Maggie Hassan said she’s not in favor of canceling all debt, but lowering the cost of higher education.

“The government’s announcement is a balanced compromise approach that will help those who need it most. I will continue to work to make higher education and vocational training programmes more affordable and ensure our young people and our economy are not held back by student debt. ,” Hassan said in a statement.

Governor Chris Sununu said student debt wasn’t cancelled, it was moved.

“Let’s be clear: President Biden isn’t canceling student debt — he’s transferring it to the backs of millions of hardworking Americans who choose not to go to college to get an expensive degree,” Sununu said in a statement. wrote on Twitter. “@POTUS unilaterally transfers the debts of New York PhD students to blue-collar workers across the country, forcing them to pay for it.”

The frontrunners in the Republican primary for the first congressional district found common ground against the plan.

“Joe Biden and Chris Pappas’ plan to raise taxes on average working-class New Hampshire families to subsidize student loans of Chris Pappas’s Harvard buddy is distasteful. Instead of encouraging bloated colleges The education system is raising prices even higher, and we must reform our higher education system and provide more resources for technical degrees, not bail out the nation’s elite,” Matt Morse said in a statement.

Karoline Leavitt gave Sununu a similar message about where the debt is going.

“Let’s be honest – debt is not going to be ‘cancelled’. It will be passed on to millions of hardworking people, many of whom made the wise decision not to go to college,” Levitt said on her Twitter account. “This is a terrible policy that sets a terrible example for young Americans.”

Contact reporter Dan Alexander at Dan.Alexander@townsquaremedia.com or by Twitter @DanAlexanderNH

Top Stories from Seacoast Current (15-21 August 2022)

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