In the United States, many university graduates start their careers heavily in debt every year. The reason for this is the student loans that millions of Americans have to take out during their studies. US President Biden is now keeping an election promise and wants to partially waive the repayment.
In the USA, several million university graduates should no longer have to repay their debts to the state in full. President Joe Biden announced in Washington on Wednesday that the government would waive some student loan repayments. Graduates with an annual salary of less than 125,000 dollars (almost 125,400 euros) should get 10,000 US dollars waived.
For graduates from low-income families who received their loan from a special grant program, the waiver is as much as $20,000. According to the government, 20 million people could become debt-free through the scheme.
Because of the high cost of studying and the high cost of living in the United States, many Americans take out a loan and start their careers heavily in debt. According to the Department of Education, a bachelor’s graduate has an average debt of around $25,000 after completing his studies. According to the information, around 45 million Americans currently have debts to the state. Total debt is currently $1.6 billion.
With the partial debt relief, Biden is implementing an election promise. He also announced further relief, such as a further extension of the moratorium on student loan repayments until the end of the year. It has been extended several times due to the economic consequences of the corona pandemic, which had hit many families hard.
After Biden recently pushed through the multi-billion dollar climate and social package, he now wants to fulfill another campaign promise just a few months before the midterm congressional elections in November. Many Democrats — and their constituents — have been frustrated over the past several months that large parts of Biden’s reform agenda have not moved forward.