John,
Have you checked on your student loans recently? Well, you might not be able to – Nelnet and a number of other student loan providers crashed this morning as thousands of borrowers logged in to check their loans at once.
They’ll all get their chance to log in soon. And they’ll get to see that a fair amount of their student loans have been forgiven by the Biden administration. This is a fantastic day for us all. After a decades-long student debt crisis, our current administration is finally making progress at eliminating the debt. This will help thousands of people across this country pay off their debt in a reasonable time frame and hopefully reduce the burden of economic inflation.
Here’s a few different provisions from the debt forgiveness plan that will help us most.
- For an individual income of up to $125k, or $250k for a family, $10k will be forgiven. For low-income individuals who received Pell Grants, they’ll receive $20k in forgiveness. This is great! It will significantly reduce repayment burdens and many people may find that the remainder of their debt has been forgiven.
- The COVID-19 moratorium on debt repayment has been extended through the end of this year and will only recommence next January. That means that borrowers have a few more months to prepare for repayment, which will help prevent unnecessary defaulting.
- Student loan repayments will now be capped at 5% of the borrower’s disposable income. That means if you take home $4k per month, you’d only have to pay $200 per month towards student loans. This is significantly less than the average amount many borrowers paid before, which was 10% of the borrower’s disposable income. That’s over $1000 saved per year for many people.
- The Public Service Loan Forgiveness (PSLF) plan, which forgives debt for those who’ve worked in the nonprofit, military, or government sectors is going to be overhauled so that many public sector workers will receive more debt forgiveness.
- The Biden administration is placing pressure on colleges to maintain or lower their costs. Biden’s going to keep his campaign promises and work towards doubling the current Pell Grant maximum and making community college free for all. When this happens, so many more low-income Americans will finally be able to afford higher education.
The usefulness of this policy cannot be understated. This will significantly help reduce economic burdens on low and middle-income borrowers, which will improve social mobility. If we want to have an America where the American Dream is still a possibility, where all of us have the capacity to move upwards if we put in the effort, we need more strong policies like this.
We need to support our Democrats who made this happen! Let’s give a round of applause to Senate Majority Leader Chuck Schumer, Senator Warren, and Senator Warnock, all of whom championed debt forgiveness. They did an excellent job, and I hope they can expand on their work so that we may create a more equitable education system for all Americans.
As many of you may know, Sen. Warnock is up for re-election in Georgia, and we as No Dem Left Behind couldn’t be prouder to support him. He’s doing amazing work in Congress, and we’re going to make sure that he keeps his seat in the Senate. He’s only been in the Senate for two years and he’s made so much progress – could you imagine how incredible it would be if he was given more?
That’s why we’ve got to get out there this November and increase our Senate and House majorities. With the right people at the helm of this country, we have no doubt that our American citizens will flourish. No Dem Left Behind is putting in the work to connect with the rural and working-class people of America’s Heartland. We’re going to swing the middle and help Democratic candidates win in critical races across the country.
It takes a lot of work to do that. We could always use more help. If you have the means, consider donating to us! We’d really appreciate it.
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Thanks for all your support!
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