In addition to the waiver, Biden says there will be a pause on repayments for all borrowers until December 31 of this year. The Democrat pledged during his campaign to help millions of people with such a measure. It will waive $10,000 for those who did not receive a federal scholarship and $20,000 for those of modest means who did receive a scholarship.
The debt cancellation, while lower than what most Democrats wanted, comes after months of discussions about its fairness and fears that inflation could worsen in the run-up to the midterm elections. Either way, the plan will face legal opposition, leaving the timing uncertain.
In a joint statement, Democratic Senators Chuck Schumer and Elizabeth Warren called the bill “a huge step toward solving the student debt crisis.”
Republican party leader Ronna McDaniel said the measure “punishes Americans who have saved for college or made other career choices.”