Some borrowers aren't eligible for student debt forgiveness.
People earning more than $125,000 will not see any relief.
Private lender borrowers are not eligible for debt cancellation.
Student loans will be forgiven by President Joe Biden. Many will be left behind
The administration will eliminate student debt for borrowers who make less than $125,000 a year, according to Biden. After months of speculation, the move is a fulfillment of a campaign promise.
The devil is still in the details. Due to its strict criteria, the program excludes millions of borrowers. The biggest groups are not included in Biden's plan.
People earning more than $125,000 per year.
Two people filing together and earning more than $250,000 per year.
Private loans were taken out by borrowers.
There were borrowers who took out student loans after June 30.
Republicans and moderate Democrats were happy with the income cap, which they argued was too expensive. Some graduates are in a difficult spot because of the cap's high incomes. Many graduate programs that lead to higher paying jobs come with hefty loan balances and Biden's plan offers little support to those students and graduates
It ignores a group of borrowers whose incomes may be below the cap. Private loans make up 8% of student debt according to Measure One. About $131 billion in loans will not be affected by Biden's program.
The administration's initial announcement did not include graduate-school debt and debt held by the parents of students. The administration will soon give more information on the forgiveness program, according to Biden.
Progressives have criticized the limitations. The senator from Vermont urged Biden to forgive student debt The administration was pushed to remove the income cap by a New York lawmaker.
The department plans to make monthly payments on income-based plans cheaper for all borrowers with federal debt, even without broad relief.
"I don't believe in a cutoff, especially for so many of the front-line workers who are drowning in debt and would likely be excluded from relief," she said.
Business Insider has an article on it.
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