President's student loan forgiveness plan draws pushback from some lawmakers and consumer groups

cnbc.com:

President Biden's long-awaited plan to forgive student debt, announced on Wednesday, drew immediate pushback from some lawmakers and consumer groups even as they praised the historic measure.

The White House said it would cancel $10,000 in federal student debt for most borrowers and up to $20,000 for recipients of Pell Grants, which are available to undergraduates based on financial need. The plan may eliminate balances for at least 9 million borrowers, according to higher education expert Mark Kantrowitz.

Relief is limited based on income qualifications — to individuals with annual income less than $125,000 and year and couples earning less than $250,000. It also extends a «final» pause on loan payments through Dec. 31; that pause, in place since March 2020, has been extended seven times.  

In a tweet, Biden touted the move as a fulfillment of a campaign promise that gives «working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023.»

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Astra Taylor, co-founder of the Debt Collective, a union for debtors, called Wednesday's announcement «bittersweet.»

«On the one hand, this is a landmark victory for our movement,» she said in a statement. «Yet, President Biden should have, and could have, done much more than cancel $10,000 or 20,000 — and he could have made the relief automatic, instead of imposing unnecessary hurdles,» she added.

Nearly 8 million borrowers may be