President Joe Biden's student loan forgiveness program will negate $20,000 to those who have a Pell grant and make under $125,000 a year.
Lynn Hunt, who took out between $45,000 and $50,000 in student loans and was a Pell Grant recipient, uses colored pencil to fill in a sketch at Hunt's home in Beaverton, Ore. on Wednesday, Aug. 24, 2022. Hunt says President Biden's student loan forgiveness plan isn't enough to help because Hunt owes about $70,000 due to a 6.7% interest rate on the loans.
The Biden administration is targeting Pell grant recipients for additional forgiveness “to smooth the transition back to repayment and help borrowers at highest risk of delinquencies or default once payments resume,” according to the Department of Education.Roughly 27 million recipients of Pell grants will now be eligible for loan forgiveness. But for some, the $20,000 will hardly made a dent.
“I know mentioned, you know, $20,000 for Pell grants, but the people that had Pell grants had to take out the most loans," Hunt said."So $20,000 isn’t helping most of those people in any substantial manner. And the thing that happens every time when we get one of these half measures is, the can gets kicked for another decade.”
Almost all Pell grant recipients are independent students or dependent students from the bottom half of the income distribution, according to a report from the Urban Institute on college affordability.
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