The White House has denied a report that President Joe Biden will pass $10,000 in student loan forgiveness, citing that no decision has been made.
Here’s what you need to know — and what that means for your student loans.
Will your student loans be forgiven? This is the question student borrowers have been asking for months. “No decision has been made yet,” White House spokesman Vedant Patel said. Told Reuters Friday. The White House has denied report from the Washington Post which states:
- Biden will forgive $10,000 in student loans per student borrower; and
- Student loan forgiveness will be available to individual student borrowers who earn up to $150,000 in annual income, or married couples who file jointly and earn up to $300,000.
Earlier this month, the Biden administration floated that same income cap to qualify for student loan forgiveness. In particular, this potential income ceiling is $50,000 more than the income cap on Covid-19 stimulus checks, which were set at $75,000 for individuals.
Biden could cancel student loans tomorrow
Will Biden Forgive Student Loan Debt Tomorrow? Biden delivers the commencement address at the University of Delaware, his alma mater, tomorrow. While the White House says Biden hasn’t decided on a large-scale student loan relief, the president could use tomorrow’s graduation as an opportunity to announce his intentions for student loan relief. Whether Biden shares a full plan or provides an updated timeline on a decision, the president could reference next steps for student borrowers. On April 28, Biden said he would decide whether to proceed with a large-scale student loan forgiveness within weeks. However, that was over four weeks ago. If Bidens announces an update on canceling student loans, that would be the second major education policy plan of the past week. For example, the US Department of Education announced a major overhaul of the student loan service.
Student Loan Cancellation: Next Steps
The Biden administration reiterates that student borrowers have not been required to pay a single dollar of their federal student loans since Biden became president. Biden has now canceled $18.5 billion in student loans for 750,000 student borrowers. The president said he was not considering a plan to write off $50,000 in student loan debt, which progressive Democrats in Congress have championed. If Biden forgives $50,000 in student loan debt, it would eliminate federal student loan debt for 36 million student borrowers. However, since the 2020 presidential election, Biden has remained focused on $10,000 in student loan forgiveness. A group of senators, led by Sen. Elizabeth Warren (D-MA), is still pressuring Biden to consider $50,000 in student debt relief. They’ve asked the president to delay a decision on large-scale student loan cancellation, which may be one reason Biden isn’t announcing a plan to forgive student loan debt. tomorrow’s degrees. The next major deadline for student borrowers is the end of temporary student loan relief on August 31, 2022. Regardless of Biden’s announcement on student loan forgiveness, pay close attention to the end of the student loan hiatus. payment of student loans. Ideally, you should have a game plan in place before student loan payments restart. Consider these popular options for student loan repayment: