MAINE, USA — President Joe Biden announced his student loan debt relief plan Wednesday afternoon, according to a post shared on Twitter.
The plan, named The Biden Administration's Student Loan Debt Plan, aims to reduce student loan debt for working- and middle-class families, according to the tweet.
The campaign promises to forgive $20,000 in student loans for those who received Pell Grants, and $10,000 for those who didn't. To meet the qualifications, you must earn below $125,000 individually per year, or below $250,000 as a family per year.
The student loan repayment pause will also be extended through Dec. 31 of this year, and those with undergraduate loans will be able to cap repayments at 5 percent of their monthly income, the tweet says.
Maine political leaders are speaking out about their opinions regarding the new student loan debt plan announced Wednesday.
Rep. Chellie Pingree, D-Maine, is "applauding" the decision, saying Biden has "improved [the] financial health of 48 million Americans."
She stated the following in a news release issued Wednesday afternoon:
"For the past two years, the zero-interest payment pause has been a lifeline for millions of borrowers, easing the financial burden that unfairly comes with pursuing higher education. But the truth is, America faced a student debt crisis long before the pandemic. About 1 in 5 Americans have student loan debt. They are our family, our neighbors, our friends; business owners, teachers, nurses, [and] doctors. President Biden’s announcement today not only fulfills a campaign promise—it will improve the lives of more than 48 million Americans, including tens of thousands of Mainers.
"Waiving $10,000 of student debt and extending the zero-interest payment pause is an important step towards addressing the crisis that has been crushing Americans for decades. Now, we must rethink our system that fostered this crisis in the first place: charging taxpayers seeking an education interest on their own money."
Rep. Jared Golden, D-Maine, criticized Biden's plan in a news release Wednesday, going as far as to say he does not support the president's decision.
“This decision by the president is out of touch with what the majority of the American people want from the White House, which is leadership to address the most immediate challenges the country is facing," Golden wrote. "The president should be taking action to reduce inflationary pressures; with this move, he potentially makes them worse. It is out of step with the needs and values of working-class Americans, and I do not support the president’s decision."
Sen. Susan Collins, R-Maine, also criticized Biden's plan in a news release Wednesday, calling it "inherently unfair" to those who didn't pursue higher education:
“I am a strong supporter of federal financial assistance to help students pursue higher education, including Pell grants, which are targeted to our lowest-income families, and the GI bill, which helps our veterans pursue higher education. I also have advocated for expanded loan forgiveness for health care professionals who practice in underserved areas.
"President Biden’s decision, however, to cancel student debt for couples making as much as $250,000 is inherently unfair to millions of hardworking Americans who chose not to pursue higher education; paid their own way to attend a community college, trade school, or certificate program; or paid off their student loans. Essentially, the President is requiring a hardworking logger to subsidize a graduate of Yale who is earning far more but has student loans. With the stroke of a pen and without congressional approval, the President has added more than $300 billion in new spending.”
Additionally, former Rep. Bruce Poliquin, R-Maine, was against the plan. He said the following in a news release issued Wednesday:
"Today, President Biden chose to use working Mainer's tax dollars to pay off the debts of college graduates. Working Mainers who are paying for home mortgages, car loans, and increased costs for home heating and groceries should not have their taxes taken to pay for loans they didn’t take out. And, the President’s use of the Heroes Act to make this decision raises serious legal questions.
"I believe in providing financial aid and support for kids to attend college and I fought against President Obama’s proposal to tax 529 college savings plans. I supported legislation which would help expand, strengthen and modernize 529 college savings plans to make college more affordable, including changes allowing students to purchase necessary school supplies, including computers, using their 529 account funds."
The office of Sen. Angus King, I-Maine, responded to a request for comment on King's behalf:
“While Senator King recognizes the value of President Biden’s means-tested, limited student loan move, he believes the skyrocketing cost of college is something that needs to be addressed more directly and sustainably. Making higher education affordable and accessible is crucial to developing a 21st-century workforce, supporting Maine’s growing industries, and providing every young American an opportunity for success.”
For more information regarding the student loan debt relief plan, click here.