WASHINGTON (Reuters) – U.S. President Joe Biden announced on Wednesday the partial cancellation of federal loans granted to millions of U.S. students, while their repayment – suspended due to the coronavirus pandemic – is due to resume next January.
“Getting a college degree or certificate should help every American secure a brighter future. But student debt has prevented too many people from achieving their dreams, like owning a home, starting a business or supporting their families,” said writes the Secretary of Education in a press release.
The White House said “the cumulative federal student loan debt — which stands at $1.6 trillion and affects more than 45 million people — is a drain on the middle class.”
The Biden administration will erase $20,000 for people who received a federal scholarship to finance part of their studies, and $10,000 for those who did not. The plan will apply to people earning less than $125,000 a year, the White House said.
US student debt, held mostly by the federal government, is due to university fees, which are much higher than those charged in many other developed countries.
(Report Nandita Bose and Moira Warburton; French version Camille Raynaud, edited by Tangi Salaün)
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