Biden Reportedly May Offer $10,000 In Student Loan Relief And Another Payment Pause

Topline

President Joe Biden is mulling providing more actions on student loans, including the cancellation of $10,000 in federal student loan debt per borrower, Bloomberg reported Tuesday citing people familiar with the matter, as Biden hones in on fulfilling a key campaign promise.

Key Facts

Not all Americans may be eligible for the relief, as a source told Bloomberg that Biden is likely to not cancel debt for individuals making between $125,000 and $150,000 or more.

Biden is also considering another extension on federal student loan repayments, according to Bloomberg, citing people familiar with the situation.

A moratorium on federal student repayments has been in place since March 2020, though the pause is slated to expire August 31.

The White House and Department of Education did not immediately respond to Forbes’ request for comment.

Key Background

Several outlets reported Monday that the Education Department told student loan servicers not to send out billing reminders, making a repayment extension appear increasingly likely. Biden said on the campaign trail he hoped to cancel a “minimum” of $10,000 in federal student loan debt per borrower, though other prominent Democrats have called for Biden to cancel far more. The highest inflation levels in more than 40 years has complicated Biden’s plans, as the New York Times reported last month that Biden is seeking more information on who exactly a blanket cancellation would benefit. Americans have $1.59 trillion in outstanding student loan debt, according to the latest data from the New York Federal Reserve.

Big Number

55%. That’s the proportion of Americans who support the federal government forgiving up to $10,000 in student loan debt per borrower, according to a NPR/Ipsos survey of 1,022 adults conducted last month.

Further Reading

Young Americans Overwhelmingly Want Government To Help Student Debt—But They’re Split On Canceling It, Poll Finds (Forbes)

Who Are the Federal Student Loan Borrowers and Who Benefits from Forgiveness? (New York Fed)