PRESIDENT-elect Joe Biden’s transition team confirmed that changes to American student loan plans would come into “immediate effect” once he takes office.
Biden’s inauguration will take place on January 20, and the student loan debt crisis is one of the things at the top of his to-do list during his first 100 days.
Joe Biden plans to tackle the student debt crisis within his first 100 days in office
What is Joe Biden’s student loans plan?
Biden is set to use executive authority to extend the current moratorium on student loan payments, interest, and collections.
This will be one of his first acts in office after he and Vice President-elect Kamala Harris are inaugurated.
The transition team also announced that it would expedite a request to Congress for $10,000 in loan cancellation for all federal borrowers.
This could wipe out debt completely for nearly 15 million borrowers who owe $10,000 or less, according to federal data.
Joe Biden has called on congress to forgive up to $10,000 in student loans for all federal borrowersCredit: AFP or licensors
What did Biden say about student loan forgiveness?
In March 2020, Congress passed the CARES Act, which provided substantial relief to student loan borrowers by pausing their payments, and suspending accrued interest.
Donald Trump‘s administration extended the moratorium twice after it was initially supposed to expire on September 30, 2020.
Details of how long the next extension will last currently remain unknown.
Biden has also committed to issuing executive orders on President Trump’s travel ban, the Paris climate change accord, mask mandates, and evictions.
American borrowers are hoping Biden will forgive their loans, which total $1.6billionCredit: Getty Images – Getty
What is Joe Biden’s stimulus check plan?
He previously tweeted his support for a $2,000 stimulus checks, but has instead announced he’d send out $1,400 to make up for the difference following Trump’s $600 checks.
Critics slammed Biden for the $1,400 checks, which are $600 less that the amount he initially called for.
The IRS said that after initial problems, it is getting more of the second round of relief payments to taxpayersCredit: Getty Images – Getty
Some supporters claimed the total was indeed $2,000 when the new $1,400 checks are added to the the $600 already issued.
Just days ago, Biden tweeted: “$600 is simply not enough when you have to choose between paying rent or putting food on the table.
“We need $2,000 stimulus checks.”