Earlier today, the Biden administration announced plans to cancel up to $10,000 in federal student debt for individuals earning less than $125,000 per year (or $250,000 for families) and up to $20,000 for recipients of Pell Grants. The administration also extended the COVID-era moratorium on loan repayments until the end of the year.
Below is a statement from Dr. Rakeen Mabud, chief economist and managing director of the Groundwork Collaborative:
“Today’s debt cancellation will provide life-changing relief to tens of millions of borrowers who will sleep a little easier tonight and wake up with more freedom to change jobs or start a business and more ability to provide for their families.
“Not only does this action begin to address the student debt crisis, it also sets an important precedent that the government can – and should – intervene to fix the broken systems that hold people back. But we can’t stop here: More work is needed to end the student debt crisis, guarantee access to free college, close the racial wealth gap, and continue to build an economy where everyone can thrive.”