"Today, we've got people who are in the checkout line for groceries and having to pick what they're going to send back because they can't afford to pay for it. "Democrats win when Democrats are in touch with the American people and what's happening to them," Warren told CBS News' Face the Nation in April. Warren has pushed for student debt cancellation in the hopes it will help Democrats maintain their grip on their Senate and House majorities in the midterm elections this November. Senator Elizabeth Warren also shared her plans to cancel student debt in her presidential campaign.
![cornerstone berkeley cornerstone berkeley](https://www.indieonthemove.com/resize/corner.jpg)
Since his election, politicians and voters have called on him to act on his promise. Justin Sullivan/Getty ImagesĬanceling student debt was a cornerstone of Biden's campaign for presidency. President Joe Biden today expressed his support for forgiving up to $10,000 in federal student loans for those who qualify. People walk through Sproul Plaza on the UC Berkeley campus on March 14 in Berkeley, California. , a website providing information about personal finances, estimated that up to 33 percent of borrowers could have their debt completely erased with the forgiveness plan. MoneyWise reports that student loans constitute the largest percentage of American household debt following mortgages. Nationally, there is roughly $1.7 trillion in federal student loan debt. The debt forgiveness could account for as much as $440 billion in loans. "So if you owed $40,000, now it would be $30,000," Laffer told Newsweek. Instead, they will see a deduction of $10,000 from their loans.
![cornerstone berkeley cornerstone berkeley](https://ezmoments.com/wp-content/uploads/2018/07/dsc_1468-1-741x525.jpg)
Those qualifying for forgiveness won't get a check for $10,000 in the mail, though. Borrowers must make less than $125,000 annually to qualify for debt forgiveness, which will only apply to public loans and not private ones.Įconomist Arthur Laffer estimates that could be as many as 44 million borrowers. That number could stretch twice as high for Pell Grant recipients.
![cornerstone berkeley cornerstone berkeley](https://cornerstoneberkeley.com/wp-content/uploads/2017/08/George-Clinton-ShowJeff-Litton-1.jpg)
He said up to $10,000 in debt from the student loans could be forgiven for those who meet certain income restrictions. However, some lawmakers and observers have criticized his plan.īiden is scheduled to announce plan details on Wednesday, but the president tweeted some details prior to the announcement. It has taken more than a year and a half, but President Joe Biden is now acting on one of his presidential campaign promises: forgiving student loans.