On Wednesday, August 26, the Biden administration released its plan to cancel federal student loans up to $10,000 for qualifying debtors, a move the White House says will see 90% of relief go to people earning less than $75,000. You can read the full announcement here, but here are the notes:
A simple application will be released in the coming weeks — if you would like to receive notice of the application, sign up at the Department of Education subscription page.
The announcement will also make big changes to the way student loan interest payments are made:
This plan doesn’t go far enough, but it will provide substantial relief to working-class debtors and help to reduce the racial-equity gap that exists in the United States. This is not a handout — this limited jubilee is the result of debtors organizing to put political pressure on elected officials to live up to the promises they make to their constituents. One of the leading debt organizers — The Debt Collective, which Metro DC DSA has proudly organized with in the past — has vowed to continue to push for full cancellation and further debt relief. This small jubilee will go far, and wouldn’t be possible without the tireless effort of people willing to stand up for themselves and each other in the face of economic peril.