According to estimates of the Committee for a Responsible Federal Budget, this could cost about $230 billion.
The White House plans to write off debts on loans taken by students to pay for higher education. The plans of the American government were reported on Friday by The Washington Post, citing sources in the Biden administration.
“The White House plans to write off student debt in the amount of $ 10 thousand for each borrower. The decision was made after several months of closed meetings on the organized write-off of loans from tens of millions of Americans,” sources told the publication.
The newspaper learned that U.S. President Joe Biden hoped to announce the measure next weekend during the graduation ceremony at Delaware University. However, in connection with the shooting at an elementary school in Uvalde (Texas), which led to the death of 21 people, it was decided to postpone the announcement.
According to the estimates of the public organization – the Committee for a Responsible Federal Budget, debt cancellation can cost about $ 230 billion.
Earlier it was reported that the number of applicants to US colleges decreased by 662 thousand people in one year. According to Doug Shapiro, director of the National Student Clearinghouse Research Center, one of the reasons for this situation is the problem of student debt.
“In my opinion, we are talking with you not only about the consequences of the pandemic, not only about low-income segments of the population, who mostly receive education in municipal colleges (they are taught according to a two-year program, and graduates are awarded an associate degree, not a bachelor’s degree), but about the global value of higher education. In particular, we are concerned about the loans that students take out to pay for education, and how much this debt pays off after graduation,” Shapiro said. He noted that applicants compare jobs involving higher education with positions that do not impose similar requirements on candidates, but are no less profitable.