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    Biden unveils plan to cancel $10,000 in student loan debt for millions

    Biden unveils plan to cancel $10,000 in student loan debt for millionsPresident delivers on campaign promise and outlines debt relief measures for those on lower incomes in White House speech01:15Millions of Americans received welcome news on Wednesday when Joe Biden delivered on a campaign promise to provide $10,000 in student debt forgiveness.Borrowers who earn less than $125,000 a year will be eligible for loan forgiveness, with those whose low incomes qualified them for federal Pell Grants receiving up to $20,000 in relief. About a third of US undergraduate students receive Pell Grants.Biden also extended a pause on federal student loan payments through the end of the year. The White House said it would be the last pause, and borrowers should expect to resume payments in January.If it survives probable legal challenges, Biden’s plan could offer a windfall to many Americans in the run-up to midterm elections in November. More than 45 million owe a combined $1.7tn in federal student debt. Almost a third owe less than $10,000, according to federal data.Biden also proposed a new income-driven repayment plan that would cap loans for low-income future borrowers and introduce fixes to the loan forgiveness program for non-profit and government workers.“Twelve years of universal education is not enough,” Biden said, announcing the plan at the White House. “How do we remain the most competitive nation in the world with the strongest economy in the world with the greatest opportunities?“That’s what today’s announcement is about. It’s about opportunity. It’s about giving people a fair shot. It’s about the one word America can be defined by: ‘possibilities’. It’s about providing possibilities.Biden noted that the federal government gave loans to small businesses during the Covid pandemic.“Now, it’s time to address the burden of student debt the same way.”Biden added that “an entire generation is now saddled with unsustainable debt.“The burden is so heavy that even if you graduate, you may not have access to the middle-class life that the college degree once provided. The burden is especially heavy on Black and Hispanic borrowers who, on average, have less family wealth to pay for it.”Biden said more information on the plan would soon be released and borrowers who qualify for forgiveness could expect a “short and simple form to apply for this relief”, sent by the Department of Education.The US has a long history of student debt, the vast majority owed to the federal government, which has been offering loans for college since 1958. US student debt has more than tripled over the last 16 years.Senior Democrats on Capitol Hill cheered Biden’s announcement. The Senate majority leader, Chuck Schumer, and the Massachusetts senator Elizabeth Warren, a longtime advocate of the policy, issued a joint statement.They said: “With the flick of a pen, President Biden has taken a giant step forward in addressing the student debt crisis by cancelling significant amounts of student debt for millions of borrowers.“The positive impacts of this move will be felt by families across the country, particularly in minority communities, and is the single most effective action that the president can take on his own to help working families and the economy.”The senators added that Democrats would continue with efforts “to help close the racial wealth gap for borrowers and keep our economy growing”.Biden has faced pressure from liberals to provide broader relief. The cancellation falls short of the $50,000 many activist groups wanted. Some groups have called for full student debt cancellation.“If we can cancel $10k, we can cancel it all,” the Debt Collective, a union of debtors, tweeted on Wednesday.Administration officials claimed the plan could reduce inflation. The top Senate Republican, Mitch McConnell, argued that it would worsen the problem.McConnell said: “Biden’s student loan socialism is a slap in the face to every family who sacrificed to save for college, every graduate who paid their debt, and every American who chose a certain career path or volunteered to serve in our armed forces in order to avoid taking on debt. This policy is astonishingly unfair.”Biden’s continuation of the pandemic loan payment freeze came just days before millions were set to find out when their next student loan bills were due. The end of the payment freeze extension was set for 31 August.During the 2020 presidential campaign, Biden was initially skeptical of student debt cancellation as he faced progressive candidates including Warren and Bernie Sanders, the democratic socialist senator from Vermont.On Wednesday, Sanders hailed “a great step forward” but said: “We have got to do more.”New York special election victory gives Democrats hope for midterms – liveRead moreAs he tried to shore up support among younger voters, Biden unveiled a proposal for debt cancellation of $10,000 per borrower, with no mention of an income cap. That campaign promise was narrowed in recent months by embracing the income limit.Democrats pushed the administration to go as broad as possible, seeing debt relief as a galvanizing issue, particularly for Black and young voters.‘There’s been a dramatic shift in how Americans think about the role of government in helping people out for college,” said Brian Powell, professor of sociology at Indiana University Bloomington who co-authored a book on the student loan crisis.Powell noted that support for debt cancellation and college affordability has grown. Those who go to college make on average $30,000 more a year than those with just a high school degree.TopicsUS student debtJoe BidenUS politicsUS educationUS domestic policynewsReuse this content More

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    ‘Serious talks’ needed to ease university demand so poorer students don’t miss out, Ucas warns

    Sign up for a full digest of all the best opinions of the week in our Voices Dispatches email Sign up to our free weekly Voices newsletter The government needs to have a “serious conversation” about how to tackle soaring demand for higher education to make sure poorer students don’t miss out, the university admissions […] More

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    Will Biden’s Recent Victories Lift the Democrats?

    More from our inbox:What’s Better, an After-School Program or a Job?President Biden is still one of the most unpopular presidents in modern history, despite his political victories.Yuri Gripas for The New York TimesTo the Editor:Re “Biden Basks in String of Wins. Will This Be a Turning Point?” (news analysis, front page, Aug. 9):The president’s legislative agenda, a close approximation to the one promised, has passed. These are accomplishments, not rhetorical speculations. That the president has low ratings at this juncture speaks volumes not about him — he has delivered, and in under two years — but about the fuzzy-thinking electorate surveyed by pollsters.Yes, voters are perennially concerned about their purchasing power and the brutal effects of inflation. Americans need to be reminded that presidents do not bring inflation with them to the White House. A complex set of global problems — including a war, a pandemic and supply chain problems — contribute to a disrupted economy.Americans would do well in this historic moment to stop and smell the proverbial roses: We, as a country, have finally acted on climate change. And drug pricing. And infrastructure. And, incredibly, guns. Much remains to be done on all these fronts. Nothing is perfect, though voters polled seem disappointed that all their wishes don’t come true on Election Day.President Biden’s poll numbers are low, but let us take a poll of climate activists, people struggling with the cost of drugs, those who understand the truly herculean effort it took to pass the Inflation Reduction Act bill. Would his numbers be higher? I’ll go out on a limb and say they would triple.Will SouthColumbia, S.C.To the Editor:As a Democrat who had previously been disillusioned with President Biden’s commitment to working with Congress in a bipartisan manner, I found the legislative and economic accomplishments noted in this article reassuring and worth celebrating.However, they may not mark a turnaround for the Biden presidency, especially with respect to the coming midterm elections. We can simply revisit the first two years of the Obama administration to see why.Barack Obama’s legislative, economic and judicial achievements through the second year of his presidency are comparable, if not more remarkable, than those of Mr. Biden. By August 2010, Mr. Obama had already nominated two Supreme Court justices, passed Dodd-Frank and the American Recovery and Reinvestment Act, and signed into law what was arguably his crowning piece of legislation, the Affordable Care Act.But, as we all know, he and the Democrats suffered substantial losses in the midterm elections of 2010.So, is Joe Biden on a legislative hot streak? Yes. But will it play to his advantage during the midterms? History suggests otherwise.Ravin BhatiaBrookline, Mass.What’s Better, an After-School Program or a Job? BjelicaS/Getty ImagesTo the Editor:Re “The Best Extracurricular Is a Job” by Pamela Paul (column, July 31):Ms. Paul is right to lament the decline in the number of teenagers who work after school. Teens who work can learn valuable things about themselves and work life that are not readily available otherwise.Where Ms. Paul goes wrong is in playing down extracurricular and after-school activities. After-school experiences help teens develop soft skills and self-confidence. They also provide credentials for getting good jobs down the road.In my research, I spoke with dozens of human resources professionals who had conducted mock job interviews with teens who had participated in after-school programs.The professionals were impressed with the experiences and skills that the teens had acquired and considered many of them to be hirable, even without a history of paid employment. In particular, after-school programs provide opportunities for teens to develop complex leadership skills, something they can rarely do at work.Teens need sequences of after-school programs and work experiences that build on each other, providing the best of both worlds.Bart HirschEvanston, Ill.The writer is professor emeritus of human development and social policy at Northwestern University, and the author of “Job Skills and Minority Youth: New Program Directions.” More

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    Principal of Uvalde elementary school suspended in wake of deadly shooting

    Principal of Uvalde elementary school suspended in wake of deadly shootingMandy Gutierrez put on administrative leave, as 77-page report details multiple failures from police and other Texas officials The principal of the elementary school in Uvalde, Texas, where an intruder shot dead 19 students and two teachers in May, has been suspended from her job.Mandy Gutierrez of Robb elementary school was put on paid administrative leave on Monday, her attorney Ricardo Cedillo said in a statement to the Associated Press.The Uvalde school district superintendent made the decision to place Gutierrez on leave, Cedillo said.‘Nancy, I’ll go with you’: Trump allies back Pelosi’s proposed Taiwan visitRead moreGutierrez had worked in the Uvalde school district for more than two decades and was finishing her first year as principal when the killings there occurred, according to a preliminary investigative report released on 17 July by the Texas state legislature.Cedillo did not provide any details on why Gutierrez was suspended.The decision against Gutierrez is only the latest against an official in the wake of the report’s release.After initially being put on paid leave as the report was being prepared, the Uvalde school district police chief, Pete Arredondo, saw his pay halted on Friday, five days after the report’s release.The school board had called a meeting on Saturday to consider Arredondo’s firing but ultimately postponed it, citing “due process requirements” and a request from Arredondo’s attorney.The 77-page report from the state legislature’s special investigative committee laid responsibility at Gutierrez and a school assistant for knowing that the lock on a classroom in which the massacre took place was not working but not getting it fixed.In addition to the 21 people killed during the shooting, 17 were wounded.Other parts of the report detailed several failures at various levels in the years leading up to the mass shooting at Robb as well as on the day of the massacre.According to the special committee report, nearly 400 officers went to the elementary school as the shooting began, but a lack of coordination between law enforcement agencies meant police failed to confront the shooter quickly.“In this crisis, no responder seized the initiative to establish an incident command post,” the committee wrote in its report.“Despite an obvious atmosphere of chaos, the ranking officers of other responding agencies did not approach the Uvalde [school district] chief of police or anyone else perceived to be in command to point out the lack of and need for a command post, or to offer that specific assistance.”On Monday, the district school board also announced that the district school year would be pushed back to 6 September. The district intends to use the extra time to install additional security measures while also providing emotional and social support services, ABC News reported.TopicsTexas school shootingUS politicsUS educationnewsReuse this content More