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Biden decision on student loan forgiveness is months away, report says


On June 2, 2022, President Joe Biden spoke in the East Room at the White House.

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The Wall Street Journal reports that the Biden administration will not announce any decision regarding student loan forgiveness before later in the summer. reportedOn Monday

After President Joe Biden stated in May that he would share his plans over the coming weeks, more than 40,000,000 Americans have been eagerly waiting for information.

According to The Wall Street Journal the White House is expected to announce forgiveness sometime in July or August.

Most likely causing the delay is intense deliberation — and disagreement — between officials on the political and financial factors of canceling billons of dollars in education debt. It’s not possible to do so in the past.

There is a $1.7 trillion student loan outstanding balance in the United States. Additionally, 25% of borrowers were behind on payments at least one year before the public health pandemic.

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Biden stated that he supported the removal of $10,000 from borrower’s accounts on his campaign trail. It would be expensive. $321 billion and completely forgive the loans of about one-third of student loan borrowers.

But there are concerns that such an announcement might cause even more disappointment and frustration than other things. After all, the average balance of education debt is around $30,000.

As a result, the Senate’s top Democrat, Chuck Schumer of New York — along with Sen. Elizabeth Warren, D-Mass., and other Democrats — is pushing the president to cancel at least $50,000 for all.

NAACP also argued that $10,000 would not be enough to help Black students who are borrowers of student loans. Wisdom Cole is the national director for the youth and college division of NAACP. said on Twitter that nixing just $10,000 would be “a slap in the face.”

All borrowers would be happy with any amount of forgiveness.

Even if the $50,000 limit was removed, the three million plus borrowers that are in excess of $100,000 would be left with huge balances.

The idea of student loan forgiveness is a source of anger for many Americans, even those who have never borrowed money to pay for college. Some Republicans have said they would try to block an effort by the president to cancel the debt.

As part of the pandemic-era policy relief, federal student loans are currently on pause through August. Nearly all of the borrowers have stopped paying their loans, according to data.