LANSING, Mich., Aug. 25, 2022 — President Joe Biden announced his student loan debt forgiveness plan yesterday. In his plan, those who attended college on Pell Grants will have up to $20,000 of their student loans forgiven, while those who received other federal student loans will have up to $10,000 forgiven. This forgiveness of student loans would only apply to those who earn less than $125,000 per year. Lastly, Biden also announced one final extension for the pause that has been placed on student loans throughout the pandemic. This pause would go through Dec. 31. State Rep. Padma Kuppa (D-Troy) issued the following statement on the plan:
“Forgiveness of student loans is critical to alleviating the crushing burden of student loan debt on Michigan’s residents and economy. By offering college loan forgiveness to graduates, we make it possible for people to better manage their budgets, build wealth and reduce the racial wealth gap. This can also reduce Michigan’s ‘brain drain,’ improve financial security and provide upward economic mobility.”