Beden warns university credit forgiveness for millions of students

Also, the president of the US said low-income borrowers who went to college with CHAPel grants would benefit up to 20,000 dollars in student credit forgiveness.

This debt relief will give tens of millions of borrowers little breathing at a time when the cost of living has increased significantly in the United States.

This move could boost support for his party's Democrats in the November Congress elections, but some economists say it could spur inflation and some Republicans in Congress questioned whether the president had legal authority to cancel the debt.

This measure is “for families that need them most, workers and middle class people who were especially seriously hit during the pandemic”, Biden said in a statement from the White House. He pledged that no high-income families would benefit, thus responding to one of the main criticisms of the plan.

Many Democrats had demanded that Mr. Biden forgive up to $50,000 for each borrower. Republicans opposed the forgiveness of student loans, calling it unfair because it will disproportionally help people who earn higher income.

“President Biden's student loan socialism is a slap on every family he sacrificed saving for university, every graduate who paid his debt, and every American who chose a certain career route or served in our Armed Forces to avoid borrowing,”, Republican leader in the Senate, Mitch McConnell, said on Wednesday.

American consumers owe $1.75 trillion in student loans, a high cost of university schooling far higher than in most other affluent countries. Mr. Biden said that other countries can cross the United States economically unless students receive economic relief. / REL/