After the White House announced on Friday that we would forgive some student loans, President Biden began canceling student loans for millions of borrowers that would cost the federal government $240 billion over the next decade.
The US President has announced a loan waiver of up to $10,000 for students receiving Pell Grant benefits and up to $20,000 for some students.
Students will have to submit the form to forgive their loan and prove their eligibility so that after submitting this form, it will be known whether this student is beneficial for this scheme or not.
A University of Pennsylvania study found that canceling Biden’s debt would cost up to $519 billion. And if its other expenses are added then it can be more than 1 trillion.
Many experts say that millions of borrowers are not paying the government by default, and more than several million Americans have federal student loans. Should not earn more. And should not invest in households earning less than $250,000.
In this, eligible students are going to take advantage of Pell Grant, whose income is too low which is targeted to take advantage of it. According to White, about 90% of the borrowers will take advantage of this scheme. Students who earn less than $75,000.
The Department of Education has withheld, or waived, some program requirements until October 31, and has asked eligible borrowers to apply.