Biden’s Student Loan Forgiveness Plan Not Yet Complete

United States North America Higher Education News by Erudera News May 03, 2022

Joe Biden

US President Joe Biden on Monday said that his plan to forgive student loan debt is not yet complete.

During a White House awards ceremony for federal workers, President Biden was asked if the proposal to cancel massive amount of student loan debt is near finalization, to which question he responded with “not yet,” according to The Washington Times.

White House press secretary Jen Psaki had also previously stated that the plan for the student loan debt cancelation is “still on the table.”

Over the past few days, Biden mentioned that he will launch a plan for federal student loan forgiveness within a couple of weeks but confirmed that he would not forgive $50,000 in student loans.

“I am considering dealing with some debt reduction. I am not considering $50,000 debt reduction. But I’m in the process of taking a hard look at whether or not there are going — there will be additional debt forgiveness, and I’ll have an answer on that in the next couple of weeks,” Biden said at the White House after unveiling new funding for Ukraine,” Biden said during a speech at the White House.

Biden considers canceling a minimum of $10,000 for student loan borrowers through execution action. This was also his campaign promise as a presidential candidate.

The proposal to cancel up to $50,000 per borrower was supported by other Democrats, including Sen. Elizabeth Warren (D-MA) and Senate Majority Leader Chuck Schumer (D-NY).

According to the nonprofit Committee for a Responsible Federal Budget, if Biden canceled $10,000 in student loan debt for every borrower, then the total amount of cancelled debt would reach approximately $245 billion.

Earlier in April, the Biden Administration decided to extend the pause on student loan repayments until August 31 for the fourth time, offering student borrowers additional time to plan the resumption of payments

>> Biden’s Administration Announces Steps to Bring 3.6 Million Borrowers Closer to Student Loan Forgiveness

In response to Biden canceling $415 million of student loans for 16,000 more student borrowers, Sen. Bernie Sanders, who had proposed the cancelation of all student loan debt, including private and federal, said that Biden should cancel all $1.8 trillion of student debt.

“Good. Now cancel the remaining $1,883,214,046,704 for 44,984,000 other Americans who are still drowning in student debt,” Sanders tweeted on February 18.

So far, Biden has canceled more student loan debt than any other US president, forgiving nearly $17 billion. However, this is still a small percentage of all $1.75 trillion student loan debt taken by 45 million borrowers.

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