President of the U.S.A Joe Biden announced partial removal student loansan issue that is at the center of heated public debate in the country, as a year of university education can cost many tens of thousands of dollars.

“Fulfilling my campaign promise, my administration is announcing a plan to help working and middle class families as they prepare to reopen federal student loans in January 2023,” the president tweeted.

In line with my campaign promise, my administration is announcing a plan to provide breathing space for working and middle-class families as they prepare to resume federal student loan payments in January 2023.

I will have more details this afternoon. pic.twitter.com/kuZNqoMe4I

— President Biden (@POTUS) August 24, 2022

Write-offs of at least $10,000 per credit only apply to those whose income does not exceed $125,000 per year.

Biden’s move is expected to bolster the Democrats ahead of the midterm elections in November as it garners young student votes. The government dismisses concerns that the decision will also increase inflationary pressures, arguing that hundreds of billions of dollars will be freed up for consumption.

American consumers are saddled with a whopping $1.75 trillion in student loan debt due to high tuition fees that are much higher than in most wealthy countries.

Biden is expected to make a statement on the matter today.

If all student loans were cut by $10,000, the total would rise to $321 billion, with 11.8 million borrowers, or 31% of college students, out of debt, according to a study by the Federal Reserve Bank of New York.

Due to the pandemic, the government has decided to freeze interest and principal payments on most federal student loans effective March 2020. This “freeze” will end at the end of August.

Democrats have pushed for Biden to write off the $50,000 limit on a single creditor, arguing that their debt prevents young Americans from saving up for a house or other major purchases. Republicans, for their part, argue that the “gift” of loans will disproportionately help the high-paying.

^{According to REUTERS, AFP, APE-MPE}