According to Bloomberg News, the United States Department of Education has approved about $6.8 billion in student debt relief. This applies to more than 113,000 borrowers through the Public Service Loan Forgiveness Program adjustments.
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The relief, according to the DOE, states will be of an average of $60,000 per borrower, it is being approved after President Joe Biden made changes in his program in October, under which the government employees and nonprofit professionals can have their federal student loan forgiven after 120 payments or ten years.
This debt forgiveness program will serve as a relief for those eligible, and the number that represents this sect is only 0.26% of the 43.4 million Americans that have a load of federal student loan debt on their heads.
In recent weeks, Biden was under pressure to make good on the campaign to forgive $10,000 worth of student loans for every borrower as the deadline for the moratorium for student loan payments at August end. The President revealed that he would either opt for a moratorium extension that has been in place since the beginning of the pandemic or carry out some type of debt cancellation.
The White House is trying to look into whether Joe Biden has the legal right to forgive student debt through the executive action. On Tuesday, Jen Psaki, the White House Press Secretary, revealed that the president was thinking of limiting the student loan forgiveness program for those Americans that earn lower than $125,000 per year.
Forgiveness of $10,000 for every borrower would clear the debt of 15 million borrowers.
