WASHINGTON, May 27 (Reuters) – President Joe Biden’s administration has not made a final decision on student loan cancellation, a White House spokesman said on Friday after a report said it planned to cancel. $ 10,000 in student debt per borrower.
The Washington Post report cited three people familiar with the plan. Two of them said the $ 10,000 debt forgiveness would apply to Americans who earned less than $ 150,000 the year before, or less than $ 300,000 for married couples filing together.
White House spokesman Vedant Patel said the report was inaccurate.
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“No decisions have been made yet. But as a reminder, no one has been forced to pay a single penny of student loans since the president took office,” he told Reuters.
The government’s current pause in student interest and payments due to COVID-19 expires in late August.
Sources, who were not identified, told the newspaper the details could change.
According to a study by New York Federal Reserve economists, forgiving $ 10,000 per student would mean $ 321 billion in federal student loans and would eliminate the entire balance of 11.8 million borrowers, or 31 percent.
“The government’s actions have already provided more than $ 18.5 billion in debt relief to more than 750,000 borrowers. Not to mention tens of billions more saved by the 41 million borrowers who have benefited from the debt. extended pause for student loan payment, “Patel said.
Student debt cancellation has become a priority for many Liberals and one that could boost popularity among younger, more educated, Democratic-leaning voters ahead of the midterm congressional elections. November term. Read more
But the Biden administration has been reluctant to unilaterally cancel an unprecedented cancellation of U.S. government-owned university debt, a move that would test its legal authority.
Instead, Biden has asked Congress to pass a bill to forgive the debt he could sign.
The federal government has allowed 43 million borrowers to stop paying a total of $ 1.6 trillion in student loans since the start of the COVID-19 pandemic in 2020.
“I’m considering trying to reduce some debt,” Biden told reporters on April 28. He said he was not considering the $ 50,000 debt reduction that some progressive Democrats have accepted.
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Report by Trevor Hunnicutt and Doina Chiacu; Editing by Hugh Lawson and Mark Porter
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