Biden Says A Decision On Student Loan Forgiveness Is Coming Within Weeks — Here’s Where He Stands

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President Biden told reporters on Thursday that he is considering taking executive action to broadly cancel student loan debt, and a decision may be imminent. Here’s what you need to know.

Biden Confirms Student Loan Forgiveness Is Coming — With A Caveat

“I am considering dealing with some [student] debt reduction,” Biden said today. However, he appeared to conclusively rule out $50,000 or more in student loan forgiveness. “I am not considering $50,000 [student] debt reduction,” he said. His comment confirms his earlier statements rejecting larger amounts of student loan forgiveness, and would seem to contradict suggestions made earlier this week by Senate Majority Leader Chuck Schumer (D-NY) that Biden was seriously considering canceling $50,000 or more in student loan debt.

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Biden did not specify an exact amount of student loan forgiveness that he is considering, although clearly it would be under $50,000. He also did not address rumors that he is considering imposing income restrictions on student debt cancellation.

“I am in the process of considering whether there will be additional debt forgiveness, and I’ll have an answer on that in the next couple of weeks,” he said.

Biden has consistently said he would support $10,000 in student loan forgiveness for borrowers. This would completely eliminate the student debt for nearly 9 million people — roughly one in five borrowers, according to the Center for American Progress. Cancelling $40,000 in student debt for every borrower would completely wipe out the student loan debt for 35 million people, representing nearly four in five borrowers.

Biden Touts Other Student Loan Forgiveness Initiatives

While Biden clearly indicated that some form of broad student debt cancellation is on the table, he also noted that his administration has already implemented billions of student loan forgiveness for hundreds of thousands of borrowers.

Biden focused specifically on recent steps to address the dysfunctional Public Service Loan Forgiveness (PSLF) program. “The first thing we did was reform the system that was in place that didn’t work for anybody,” he said, likely referring to the long-standing dismal loan forgiveness approval rate for the PSLF program under its original rules. Since implementation of the new PSLF initiative, the Education Department has announced $5 billion in new student loan forgiveness.

Earlier this month, the administration also announced historic fixes to the Income-Driven Repayment (IDR) system, relaxing eligibility rules and allowing borrowers to significantly advance their progress towards eventual loan forgiveness. The Education Department estimates that at least 40,000 borrowers will see near-immediate student loan forgiveness under the IDR initiative, with potentially hundreds of thousands of additional borrowers benefiting in the coming years.

Further Student Loan Reading

Thousands Of Jobs Qualify For Expanded Student Loan Forgiveness Program

Who Qualifies For Student Loan Forgiveness Under Biden’s Huge New Expansion Of Income Based Repayment

Biden Administration Announces Sweeping Fixes To Income Based Repayment And Student Loan Loan Forgiveness Programs

4 Options For Biden To Legally Enact Student Loan Forgiveness Without Congress

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Credit: www.forbes.com /

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