Faith Zochowski | Reporter
On Aug. 25, President Joe Biden announced details of his ongoing plan to relieve people of their student loans.
According to the White House Fact Sheet, President Biden has a three-part plan to relieve individuals and families of financial stress, particularly due to the COVID-19 pandemic. As part one of this plan, the Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients and up to $10,000 to non-Pell Grant recipients. Individuals with an income of less than $125,000 or married couples with an income of less than $250,000 are eligible for this relief.
The Biden-Harris administration also plans to cut monthly payments in half for undergraduate loans, meaning that the average student loan payment will decrease by more than $1,000 for current and future students.
According to Federal Student Aid, the student loan repayment pause will extend through Dec. 31, 2022, with payments resuming in Jan. 2023.
With this plan, the President aims to further reduce the cost of college. President Biden advocated for the largest increase in Pell Grants in over a decade.
This action comes as a result of the ever-growing student debt plaguing the nation. According to AP News, U.S. student debt has reached up to $1.6 trillion in 2022. Since 1980, the total cost of four-year public and private institutions has nearly tripled, resulting in more loans.
BGSU strives to make college affordable for its students. 90% of all students receive some form of financial assistance such as general fees, housing, meals, or books.
The university has yet to release a statement on President Biden’s announcement.
