Representative Adriano Espaillat Statement on Student Loan Relief for Borrowers
NEW YORK, NY – Today, Representative Adriano Espaillat (NY-13) released the following statement in response to President Biden’s actions to provide student loan relief for borrowers who need it the most.
“During the campaign, President Biden promised to provide targeted student debt relief to working- and middle-class families, and today, he kept his promise by taking actions that fulfil that commitment and provide breathing room to borrowers as they prepare to resume student loan payments following the COVID-19 pandemic,” said Rep. Espaillat. “A post-high school education should be a ticket to the middle-class, but over the years, we have witnessed the cost of college skyrocket to exorbitant amounts preventing far too many borrowers from being able to purchase a home, start a business, or save for retirement. Today’s student borrower relief is a step in the right direction, and I look forward to continuing my efforts in collaboration with President Biden and this administration to help American families get back on track, recover and thrive.”
The Biden-Harris Administration announcement will:
- Forgive up to $20,000 of federal student loan debt for Pell Grant recipients, and up to $10,000 for other qualifying borrowers. Borrowers who earn less than $125,000 per year or households earning less than $250,000 are eligible for debt cancellation.
- Extend the federal student loan pause a final time through December 31, 2022 to provide borrowers a smooth transition back to repayment.
- Make the student loan system more manageable for current and future borrowers by cutting monthly payments in half for undergraduate loans and holding schools accountable when they hike up prices.
These actions will help borrowers who need it most – with nearly 90% of relief dollars going to borrowers earning less than $75,000 per year. Additionally, the actions taken today will continue to have a significant impact for current and future students. Under President Biden’s proposed changes to income-based repayment, the average borrower will save over $1,000 per year on loan payments, and the typical college borrower will see their loan payments cut in half.
More information will be available to borrowers in the coming weeks to find out whether they qualify for debt cancellation and more details on the proposed revamp to the repayment program. Visit studentaid.gov/debtrelief to sign up to be notified automatically when this information is available.
Today’s actions build on the steps that the Biden-Harris Administration has already taken to provide over $32 billion in loan relief to 1.6 million borrowers. That includes making temporary changes to the Public Service Loan Forgiveness program so more public service workers can get their debt cancelled after 10 years of service. Individuals can apply right now – until October 31st - to take advantage of these temporary changes to the PSLF program. Visit PSLF.gov for more information.
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