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Biden announce $10,000 federal student loan cancellation

Wednesday, 24 August 2022

By : Quick Insurance Guru

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$10,000 in federal student loans for many Americans and extend a pause on payments to January

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The people spoke on the condition of anonymity to discuss Biden's intended announcement ahead of time.

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Include an income cap limiting the forgiveness to only those earning less than $125,000 a year

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The plan would likely eliminate student debt entirely for millions of Americans and wipe away at least half for millions more.

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Almost a third owing less than $10,000 and more than half owing less than $20,000, according to the latest federal data.

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Wednesday’s announcement was set for the White House after Biden returns from vacation in Rehoboth Beach, Delaware.

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Biden was initially skeptical of student loan debt cancellation as he faced off against more progressive Sens. Elizabeth Warren, D-Mass

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That remained one of the final variables being considered by Biden heading into Wednesday’s announcement.

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It increases the risk that some borrowers will inadvertently be told they need to make payments, he said.

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“You can’t just turn on a dime with 35 million borrowers who all have different loan types and statuses.”