Joe Biden gives $10,000 to 43 million students in debt
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The American president announced the partial cancellation of student loans.
After months of hesitation, but in the midst of the campaign for the midterm elections, President Biden announced on Wednesday a cancellation of 10,000 dollars in the amount of debt held by some 43 million students and former students. It was one of his election promises two years ago.
The measures only cover federally guaranteed university debt. The maturities of these debts had already been suspended during the pandemic. The moratorium is also extended until the end of the year.
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43 million Americans are in debt today under the financing of their studies. The average borrower owes $37,000. The total amount of federal student debt is $1.6 trillion.
The left of the Democratic Party believes that the White House should have gone further. It proposed to erase up to 50,000 dollars of debt per student. Republicans denounce the “gift” offered to students because of its clearly electoral scope and in their eyes unfair. They argue that millions of Americans did not get a higher education because of the cost of debt they would have had to bear. These disadvantaged taxpayers find themselves in fact financing the debts of relatively wealthy students. To limit this effect, the White House decided that borrowers with annual incomes above $125,000 would be ineligible for the new measures. Ultimately some 15 million students should find themselves free of their debts.
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