Biden will cancel $10,000 in federal student loan debts

President Biden has announced that he will cancel $10,000 in federal student loan debts for those earning under $125,000 annually.

He announced that those on Pell Grants will have up to $20,000 in student loan debts canceled. The President will outline the plan at 14:15EST.

Around 43 million Americans owe around $1.6tn in federal student loan debts, with a third owing less than $10,000.

Biden announced that his “Administration is announcing a plan to give working and middle class families breathing room.” Forgiving student loan debt was one of his campaign promises and pushed forward by the Progressives in his Party.

In keeping with my campaign promise, my Administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023.

I'll have more details this afternoon. pic.twitter.com/kuZNqoMe4I

— President Biden (@POTUS) August 24, 2022

The President was urged by Progressives to forgive at least $50,000 per borrower, Biden kept the limit to $10,000 but that too is set to put a massive dent on the already-battered economy.

With soaring inflation, the timing of Biden’s announcement is being questioned

The move is set to put around a burden of $300bn on the taxpayer, which most definitely includes the middle class families. Those who worked hard to pay off their student loans have reacted strongly against President Biden’s announcement that was destined to be popular and controversial at the same time.

Moderates in Biden’s Party and Republicans have raised red flags against the ill-timed move that according to them will overburden the already overburdened taxpayer.

President Biden’s move is being labeled as a “debt-transfer scam” by critics and experts.

Who will be forced to pay for Biden's debt transfer scam? Hard-working Americans who already paid off their debts or never took on student loan debt in the first place.

— Kevin McCarthy (@GOPLeader) August 24, 2022

Experts believe the move was made by an under pressure Biden who was facing criticism from within the Party that has started looking for a replacement candidate for 2024.

The move, no doubt, is set to win Progressive hearts ahead of the midterms that the Democrats fear will give the Republicans a majority. With such a radical announcement, the Democrats will definitely have something to sell during their campaign trails that the Republicans are also set to counter them with Biden’s failures at both home and abroad.