Issued by an apolitical federal body and requested by conservative lawmakers, the estimation is adding more points to the long-going debate between Republicans and Democrats.
Debt relief plan in US
As per the Congressional budget on Monday, the plan of President Joe Biden to give rest to the students by forgiving their student debt is now touching the numbers to the government up to a massive total of $400 billion. The plan was announced by Biden on the 24th of August, adding to his campaign promise.
Republicans on the other hand are arguing that the public money and funds could be used more effectively and are calling it a waste.
As per the announced plan, $10,000 will be removed from the owed loans by people who are earning less than $125,000 and relief of $20,000 for the students who went to their universities under need-based government assistance which is also known as Pell Grant.
The US colleges are known for leaving their students under crushing student debts that take them a lifetime to pay off. It can cost anywhere between $10,000 to $70,000. As per government estimates, an average debt of a student is $25,000.
The plan of Biden’s is heavily debatable right now. Experts and many economists are talking about the implications of the proposal as it is highly unclear about the loan repayments which are already made by the people who could be benefitting from the same debt forgiveness.
