President Biden has announced a plan to cancel up to $10,000 in federal student loan debt for millions of Americans.
- Borrowers who earn less than $125,000 per year will be eligible for up to $10,000 in loan forgiveness, while Pell Grant recipients will be eligible for an addition $10,000.
- Current students will also be eligible for debt relief, but not future students, the White House says.
- Biden will also defer student loan repayments until the end of the year.
- Most people will have their debt cancelled automatically, but some will have to apply for debt relief, according to the Education Department.
- Is this the right move? Should Biden have taken it further with even more debt forgiveness? Are there any potential economic downsides to cancelling student loan debt?