Biden just canceled $10,000 in student debt for federal borrowers making under $125,000 a year

Broad student-loan forgiveness has been enacted by the president.

Biden said on Wednesday that he would be canceling student debt for people making under $125,000 a year. The announcement was made on the campaign trail by Biden.

Payments will resume after August 31

The president indicated during a speech at the end of April that he was not considering the $50,000 in relief requested by Elizabeth Warren. Insider previously reported that the relief would be difficult to implement because it would be targeted to borrowers based on income.

Democrats were hoping the relief wouldn't be subject to income thresholds. All student debt should be wiped out according to Vermont Sen. Alexandria Ocasio-Cortez told The Washington Post that high-earning people shouldn't lose out on relief.

"I don't believe in a cutoff, especially for so many of the front-line workers who are drowning in debt and would probably be excluded from relief," she said.

With student-loan payments set to resume in a week, lawmakers on both sides of the aisle were growing concerned with the announcement of relief on such short notice. The administration is causing a lot of anxiety. On Monday, the Education committee wrote on the social networking site.

Student-loan companies are hesitant about implementing student-loan forgiveness on a short time frame. Debt relief is something that will take months to operationalize, according to Scott Buchanan, executive director of the Student Loan Servicing Alliance.

"That's going to take months for us to figure out how to do it, because we're going to have to think about all sorts of the implications of the interactive effect of that forgiveness with other forgiveness programs that are in place today," Buchanan said.

Millions of borrowers will benefit from this relief. According to data obtained by Massachusetts Sen. Elizabeth Warren, $10,000 in loan forgiveness would eliminate 13 million balances. The Education Department enacted $5.8 billion in relief for Corinthian Colleges students who were deceived by the for-profit chain, and many lawmakers used that to push for forgiveness for all borrowers.

The Corinthian relief is a great first step according to Minnesota Rep. All of the student debt needs to be canceled.

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