Congressman Castro Applauds Administration Action to Forgive up to $10,000 in Student Debt for Borrowers
SAN ANTONIO – Today, Congressman Joaquin Castro (TX-20) released the following statement applauding President Biden’s announcement that the U.S. Department of Education will cancel up to $10,000 in student loans for borrowers making under $125,000/year, with additional forgiveness up to $20,000 for Pell Grant recipients. Today’s announcement also extends the student loan payment pause for all borrowers through December 31, 2022 and allows borrowers to use income-driven repayment plans to cap their monthly payments for undergraduate loans at 5% of income, with balances forgiven after ten years for borrowers with original loan balances of $12,000 or less.
“A college education should be a pathway to success without a lifetime of debt,” said Congressman Castro. “Today’s announcement will transform the lives of millions of Texans, making it possible for them to buy their first homes, launch small businesses, and chase their American Dreams. Student loan forgiveness is a critical step to build a fairer, stronger economy, and I look forward to working with the Biden administration to make higher education more affordable for all students.”
Today’s announcement follows previous moves by the Biden administration to cancel nearly $32 billion in federal student debt by expanding loan forgiveness programs for public servants, borrowers with disabilities, and those who were defrauded by for-profit institutions.
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