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Hall: Biden’s Student Loan Bailout is a Bad Move

(09/15/22 8:00am)

President Joe Biden recently announced $10,000 in federal student loan forgiveness for borrowers earning less than $125,000 annually, or for couples earning less than $250,000, through a recent executive order. In addition, the plan also cancels up to $20,000 for Pell Grant recipients. Pell Grants are provided by the federal government — they do not have to be repaid, but recipients often take out additional loans to pay for higher education. Biden’s plan would provide complete debt cancellation for approximately 15 million borrowers and provide some relief for up to 40 million people. In addition to the bailout, the moratorium on student loan payments — a policy put in place at the beginning of the pandemic — was once again extended through the rest of the year. This marks the seventh extension of the payment pause. 





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