$400 bn worth of estimation for US student debt relief plan

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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.

Image Source- Encyclopaedia Britannica

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.

Image Source- Jagonews24

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. 

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Sunidhi Rai
Sunidhi Rai
The world of books is an intriguing path to take. I have been passionate about writing and publishing for as long as I can remember. I am a young author who dwelled into the sphere of writing at an early age. Studying and choosing my major in journalism was just a part of my rebel persona. I published my first book in my second year of graduation which is called 'Not so sweet 16'. This book highlights the issues that a teenager faces in today's world. I have scripted two documentaries till now and I am working towards many more. The field of media and journalism in India is going through a turbulence state and I would like to do my part in this arena by delivering unbiased and factual matters to the very best in hands.

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