Debt cancellation will free up hundreds of billions of dollars for new consumer spending that could go toward real estate purchaseaccording to economists.
“Earning a college degree or certificate should give every person in America a head start on securing a bright future. But for too many people, student loan debt has hampered their ability to pursue their dreams, including buying a home, creating a business or supporting your family,” said Secretary of Education, Michael Cardona.
The administration said the nation’s “accumulated federal student loan debt, at $1.6 trillion and rising for more than 45 million borrowers, is a significant burden on the middle class of the United States”.
Joe Biden is expected to speak on the matter later Wednesday at the White House.
A lots of democrats they had pushed for Biden to forgive up to $50,000 per borrower, but applauded the move.
The republicanswho seek to regain control of the Congress in the November election, they argue the measure will disproportionately help higher-income people.
Americans have a whopping $1.75 trillion in student loan debt, most of it held by the federal government, the result of college tuition substantially higher than in most rich countries.
Source: Ambito
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