Published: Just now
US President Joe Biden has presented a proposal that will reduce many Americans’ federal student debt by up to $20,000, equivalent to around SEK 106,000), he announced on Twitter.
People with federal student debt who also received special financial aid due to bad finances would have their debt written down by an additional $10,000, according to the proposal.
The write-downs of the student debts must only be given to those who borrowed before July 1 of this year, and earn less than 125,000 dollars a year. President Biden also extends the pause for student loan payments, which applied during the pandemic, until the end of the year.
More than 43 million Americans have federal student debt, with an average debt equivalent to about SEK 400,000.