Biden cancels 10 to 20 thousand dollars of student debt for millions of people – Corriere.it

from Marilisa Palumbo

Biden has kept his campaign promise to alleviate university debt. Ten thousand dollars of mortgage canceled for individuals who earn under 125 thousand dollars a year (250 thousand for families), 20 thousand for Pell Grants recipients

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For the left of the Democratic Party not enough, for the right a glaring mistake.
A huge relief for millions of Americans. After months of reasoning, studies, second thoughts, Biden has kept faith with his electoral promise to alleviate his university debt. Ten thousand dollars of mortgage canceled for individuals earning under $ 125,000 a year (250 thousand for families), 20 thousand for the recipients of Pell Grants, designed for the less well-off (it is estimated that 27 million people will benefit). There are 45 million Americans on whose shoulders a total debt of 1.6 trillion dollars weighs. One fifth owes less than ten thousand. Biden also announced that the payment hiatus, which began with Covid in March 2020, will be extended still until the end of the year.

Speaking from the White House returning from the beach house in Delaware, Biden said: All of this means that people can finally start getting out of that mountain of debt … They will finally be able to think about buying a house, starting a family or starting a business. And, by the way, when this happens, the entire economy benefits.

Great joy on the part of those who have always fought on the subjectstarting with Senator Elizabeth Warren, but a lot of skepticism even among prominent Democrats such as the former Treasury Minister (with Clinton, then head of the National Economic Council with Obama) Larry Summers, worried about rising inflation because families will have more money to spend (inflation is his worry, he predicted it would skyrocket long before it happened). According to Summers and the many who think like him, Biden’s move is one redistribution of wealth, which however does not help the poorest: the moratorium in particular, tweets Summers, rewards among other surgeons, lawyers and investment bankers with very high salaries.

But from the younger electorate, whose support the Democratic president was losing, the relief was enormous. Before the announcement on social media, this tweet was circulating a lot: Personally, if Biden cancels even $ 10,000 of my student debt, I’ll hang a picture of her in the living room. as an Italian grandmother does with that of the pope.

Others do not toast, and even if from opposite positions – because they would like much clearer measures – I agree with Summers. According to critics from the left, who called for a discount of at least $ 50,000, the measure as it is does not help enough blacks, minorities and the poorest, those in greatest difficulty with debt repayments. According to the Brookings Institution, four years after graduation, black students owe an average of $ 25,000 more than their white peers..

Republicans are indignant, according to whom it will be those who have already paid off the debt or those who have never contracted it to pay for the children of others. According to Nebraska Republic Senator Ben Sasse, the plan it forces blue-collar workers to subsidize white-collar graduate students. Instead of demanding accountability from a failing higher education sector that pushes many young Americans into massive debt, the administration’s unilateral plan names a failing system. As for the cost to the government, according to an estimate by Penn Wharton, it will be around 300 billion dollars.

August 24, 2022 (change August 24, 2022 | 23:31)

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