The White House insists there is no decision on student loans
White House insists there are STILL no decisions on student loans following report that Biden is now considering eliminating $10,000 of debt per borrower after months of negotiations
- The White House moves closer to a decision on student debt forgiveness
- President Joe Biden leans toward writing off $10,000 per borrower
- No final decision has been made, warns the White House
- But reports say an executive order has been drafted and Biden is expected to sign
- Liberals push for student loan forgiveness
- Republicans say it’s a waste of federal tax dollars
- Federal loan payments currently on hold due to the covid pandemic
The White House is closing in on a decision on student debt relief, a cause pushed by progressives, and President Joe Biden is leaning toward writing off $10,000 per borrower.
The administration cautions that no final decision has been made, but multiple reports released Friday indicated that Biden considered using a commencement address scheduled this weekend to make the announcement.
“No decisions have been made yet, but as a reminder, no one has had to pay a single cent of student loans since the president took office,” Deputy Press Secretary Vedant Patel told DailyMail.com.
Biden spoke at the Naval Academy on Friday but did not mention student loans. He will speak at the University of Delaware, his alma mater, on Saturday.
the Washington Post reported that the timing was changed in the wake of a school shooting in Uvalde, Texas, that left 19 children dead.
The White House moves closer to a decision on student debt forgiveness and President Joe Biden leans toward writing off $10,000 per borrower
Federal loan payments currently on hold due to the covid pandemic
Graduates applaud during a New York University commencement ceremony at Yankee Stadium
The loan forgiveness plan would apply to those who earned less than $150,000 the previous year, or less than $300,000 for married couples filing jointly, the Post reported.
The executive order has been drafted and Biden is weighing whether or not to sign it, CNN informed.
Prominent Democratic Party liberals, including Sens. Bernie Sanders and Elizabeth Warren and Rep. Alexandria Ocasio-Cortez, have been pushing Biden to forgive student loans.
Ocasio-Cortez commented on the reports, saying that $10,000 was not enough.
‘$10k means proven forgiveness is enough to piss off the people against *and* the people who need forgiveness the most. $10k relieves most people who owe less. What relief is there for the most desperate? For them, interest will undo that 10k fast. We can do better,’ she wrote on Twitter.
Republicans have criticized the idea, saying it wastes federal dollars.
Forgiving $10,000 per student would equal $321 billion of federal student loans and wipe out the entire balance for 11.8 million borrowers, or 31 percent, according to a study by economists at the New York Federal Reserve.
‘The administration’s actions have already provided more than $18.5 billion in targeted debt relief to more than 750,000 borrowers. Not to mention the tens of billions more saved by the 41 million borrowers who have benefited from the extended student loan payment pause,” Patel said.
Loan payments have been suspended since March 2020, a move made during the coronavirus pandemic.
The issue could come into play during the midterm elections.
Student loan cancellation is a popular topic among young voters.
But Biden appears reluctant to unilaterally write off university debt owned by the US government, a move that would test his legal authority and could be the subject of a lawsuit.
Instead, Biden has asked Congress to pass a debt forgiveness bill that he could sign.
In April, Biden said he was “considering dealing with some debt reduction.”
“I am not considering a $50,000 debt reduction, but I am in the process of taking a hard look at whether or not there will be additional debt forgiveness and I will have an answer on that in the next two weeks,” he said. on April 28.