Queens, NY – In response to President Biden announcing his plan to cancel student loan debt Assemblymember Nily Rozic (D,WF-Queens), Chair of the Assembly Committee on Consumer Affairs, issued the following statement:
“The President’s announcement is a huge win for NY students and consumers. At a time when New Yorkers are struggling under high costs – from the grocery stores to the gas pumps – this debt forgiveness will provide significant relief for those in the most need.”
“This debt cancellation, along with the pause on federal student loan payments, interest, and collections will improve borrowers’ economic security, allow them to invest in their families, save for emergencies, and pay down other debt. Additionally, the President announced improvements to other programs like Income Driven Repayment, which will also allow millions more student loan borrowers to better access existing programs to reduce their student loan debts.”
President Biden’s announcement stated that he would cancel $10,000 in federal student loans for borrowers earning less than $125,000 or for couples earning less than $250,000. Students who received Pell grants, which are for low-income students, will be eligible for an additional $10,000 in debt forgiveness.
Biden also announced that those with undergraduate loans would be able to cap their payments at 5 percent of their monthly income under income driven repayment plans, down from 10 percent previously.