Biden announces student loan forgiveness plan

Published: Aug. 24, 2022 at 7:50 PM MDT
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RAPID CITY, S.D. (KEVN) -The U.S Department of Education will provide student debt cancellation for up to $10,000 for people with an annual income under $125,000; while also extending the pause on payments one final time until the end of December.

The cancellation of student debt is being paired with a plan to lift the COVID-era freeze on federal student debt payments, beginning In January of 2023. That means many Americans who haven’t had to pay down student loans since March 2020 will have to begin doing so.

Cyler Henderson, a Black Hills State University student, says " it’s positive and negative to it and I think Joe Biden would be very good by helping students get out of that debt, but also you’re taxing all the other people that haven’t went to college and made a different opportunity occur for them.”

The Department of Education is also proposing to create a new income-driven repayment plan they say should reduce monthly payments for lower-and-middle-class people.