Student rates

Biden says he will have decisions on gas tax and layoff of student loans by the end of the week

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Americans who want clarity on how the US government will handle soaring gas prices and heavy student loan debt should get their answer this week, as President Joe Biden is expected to make an announcement on both. Questions.

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Biden said Monday he hopes to decide soon whether to support a federal gas tax waiver, CNN reported. He is also approaching a decision on student loan relief.

“I’m hoping to have a decision based on the data I’m looking for by the end of the week,” Biden told reporters at a Delaware briefing when asked if he supported a gasoline tax exemption.

The federal gasoline tax, currently 18.3 cents a gallon, cannot be waived without congressional approval. That could be a tough sell, given that the money is being used to fund needed infrastructure improvements to the country’s roads and highways, which many lawmakers support.

But the White House is under increasing pressure to lower prices at the pumps as the summer travel season kicks off. The national average recently climbed above $5 a gallon for the first time before dropping to $4,968 this week, according to AAA.

Biden also said his staff would meet with oil industry executives this week, Fortune reported. Last week, the president told US refiners in a letter that the oil industry’s record profit margins were unacceptable. He called for “immediate action” to improve oil production.

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“I want them to explain to me why they’re not refining more oil,” Biden said.

Meanwhile, the White House is also considering whether to send gas discount cards to Americans.

“It’s part of what we’re looking at, it’s part of the whole operation,” Biden said.

As CNN noted, the Biden administration has previously played down the prospect of sending gas rebate cards directly to Americans because the program would be difficult to administer. However, on Monday the president indicated that the idea was still on the table.

On federal student loans, Biden said he and his team are close to deciding whether to cancel student debt, though he didn’t provide further details.

As previously reported by GOBankingRates, Biden suggested earlier that he was likely to delay any firm decision on student loan forgiveness until at least July or August. That would bring his announcement closer to the end of the federal student loan repayment pause, which is scheduled to end on August 31, 2022.

The pause, which took effect in March 2020, relieved millions of federal student borrowers of student debt during the COVID-19 pandemic. Although Biden said on the 2020 campaign trail that he supports some form of student loan forgiveness, many lawmakers oppose the idea.

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About the Author

Vance Cariaga is a London-based writer, editor and journalist who has previously held positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work has also appeared in Charlotte Magazine, Street & Smith’s Sports Business Journal, and Business North Carolina magazine. He holds a BA in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting has won awards from the North Carolina Press Association, the Green Eyeshade Awards and AlterNet. In addition to journalism, he has worked in banking, accounting and restaurant management. A North Carolina native who also writes fiction, Vance’s short story “Saint Christopher” placed second in the 2019 Writer’s Digest short story competition. Two of her short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. Her first novel, Voodoo Hideaway, is published in 2021 by Atmosphere Press.