Student loan forgiveness: When will the Biden administration make a decision?
The decision surrounding the addressing of the student debt crisis has been put off for months and months. Is it finally near?
The first official talk from the US government in months has emerged after White House Press Secretary Karine Jean-Pierre made comments on when the plan will be relased last Tuesday.
“We’re just going to continue to assess our options for cancellations … so no decisions have been made on that [yet],” she said. “And the president has made clear it will — he’ll have something before August 31.”
The Biden administration has been tight-lipped on student debt plans despite it being a key pledge in Biden’s election. August 31 also coincides with the date that repayments and debt accruation is to resume for the first time in tow years, though a further extension of this could be a proposal.
What is the help that is expected to be offered?
Biden is now considering canceling up to $10,000 but limit access to the relief, according to a number of US news outlets. Only single borrowers earning less than $150,000 a year, or less than $300,000 for married couples filing jointly would be eligible for the federal loan debt forgiveness. This is far less than what was promised during the election cycle and is not likely to be popular with his young voters, particularly vital with midterm elections fast approaching.
“With the flick of a pen, President Biden could cancel $50,000 in student loan debt and provide millions upon millions of student loan borrowers a new lease on life,” Senate Majority Leader Schumer, one of the biggest supports of the full forgiveness, said in October.
Until the full announcement is made the amont of debt being written-off is not known, but it’s looking less and less like the $50,000.
How much debt do students in the US have?
The average student loan debt per borrower is $39,351, which means an average monthly payment of $393, according to recent statistics from EducationData.org. In total 43.2 million people currently have a student loan and that number is only increasing each year. Around 2.6 million graduates owe more than $100,000 in student loan debt alone.