Biden May Cancel ‘Some’ Student Debt—But Rules Out Canceling $50,000 Per Borrower

Topline

President Joe Biden said Thursday he’s considering canceling “some” debt for federal student loan borrowers, but added he is not looking to cancel $50,000 in debt per borrower, breaking with top congressional Democrats that had pushed for that number.

President Joe Biden speaks about the war in Ukraine in the Roosevelt Room at the White House on … [+] Thursday in Washington. (AP Photo/Andrew Harnik)

ASSOCIATED PRESS

Key Facts

Biden did not specify how much debt he’s considering canceling, but he campaigned on eliminating $10,000 in debt per borrower.

Senate Majority Leader Chuck Schumer (D-N.Y.) has long pushed the president to forgive $50,000 in debt, arguing the higher number will serve to fully eliminate student loan debt for 36 million Americans.

Biden’s expressed hesitancy in the past to canceling debt without going through Congress, but reportedly told the Congressional Hispanic Caucus Monday he might “soon” issue an executive order aimed at eliminating student debt.

Crucial Quote

“I am not considering $50,000 in debt reduction, but I’m in the process of taking a hard look at whether there will be debt forgiveness, and I’ll have an answer in the next couple weeks,” Biden said at a news conference.

What We Don’t Know

It’s not clear whether loan forgiveness will be targeted for certain groups, like only those with lower incomes or public college attendees.

Key Background

A moratorium on federal student loan payments has been in place since March 2020, and is set to remain until at least August 31 under the latest extension signed by Biden. Left-leaning advocates pushing for student loan forgiveness have been urging the president to take action, and many have lobbied for full federal student debt elimination. Biden’s stance so far has brought frustration across the political spectrum, with Democrats of all ideologies questioning the timing of letting the moratorium expire just before the midterm elections. Republicans have also seized on the issue, suggesting the timing of forgiveness or another moratorium extension is a desperate attempt from Biden to boost sagging approval ratings and help Democrats’ chances in the midterms.

Chief Critic

Moderate Republican Sen. Mitt Romney (Utah) tweeted Wednesday that canceling student loan debt amounts to a “bribe.”