Student rates

Student loan forgiveness: Report says Biden is on the verge of making a decision

President Biden said last month that he expected to make a decision on canceling additional federal student loan debt within a month.

WASHINGTON — President Joe Biden’s administration has not made a final decision on canceling student loans, a spokesperson said Friday. after a report that the last plan would be to cancel $10,000 of student debt per borrower.

The Washington Post quoted three “people with knowledge of the matter” who said the president had hoped to announce the administration’s long-awaited plan early Saturday at the University of Delaware. But Post sources said the timing changed due to the fatal shooting at a school in Uvalde, Texas.

“No decision has been made yet – but as a reminder, no one has been obligated to pay a single penny in student loans since the president took office,” a White House spokesperson said. Reuters and CNBC. CNN reported Friday White House aides drafted the debt relief order, but were awaiting a final decision.

On April 28, Biden said he expected to make a decision on canceling additional federal student loan debt within a month.

Several outlets have reported in recent weeks that the plan will cancel at least $10,000 in student debt per person, although there may be income limits on who qualifies.

Friday’s Washington Post article said the latest plan would only include those who made less than $150,000 in the previous year, or less than $300,000 for couples filing jointly.

Senate Majority Leader Chuck Schumer, DN.Y., and other leading Democrats have called for $50,000 in debt to be forgiven and some activists want all debt erased without exception.

Those hoping for a higher amount were not happy with the $10,000 report.

NAACP President Derrick Johnson Charged like “like pouring a bucket of ice water on a forest fire”.

“In other words, it won’t do anything, especially for the black community. Right now, black Americans are the only ones with more student debt to pay off than the sum of their median annual income. 10 $000 of cancellation wouldn’t even put their total student debt below their annual income,” Johnson said in a statement.

During his campaign, Biden said he wanted to “immediately cancel” at least $10,000 in student debt per person. So far he has repeatedly extended a pause to force borrowers to repay their loans, a moratorium that was put in place under then-President Donald Trump at the start of the COVID-19 pandemic. .

About 43 million Americans owe $1.6 trillion on student loans, more than credit cards or car payments.

The Associated Press contributed to this report.