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Topline
President Joe Biden was poised to announce a long-awaited plan to cancel $10,000 per borrower in student loan debt as soon as this weekend, the Washington Post reports, but the timing of the announcement has been delayed due to Tuesday’s school shooting in Texas–here’s how the plan would compare to Biden’s previous commitments:
President Joe Biden delivers remarks before signing an executive order to advance policing and … [+]
Los Angeles Times via Getty Images
Key Facts
The White House is currently planning to limit relief to individual tax filers who made less than $150,000 in the previous year, three anonymous sources familiar with the plans told the Post.
For couples filing jointly, the cap is set at $300,000, the Post reports, citing two of the people familiar with the matter.
The Post reports the plans, which he was set to deliver during commencement addresses, are not yet finalized and the numbers or requirements could still change before Biden makes a decision, while CNN reports aides have already drafted the order.
April 2022: Biden announced on April 28 he would not be canceling $50,000 in debt per borrower, and said he would have a decision on how much in the “next couple weeks.”
October 2020: While campaigning in Miami, Biden said he would “eliminate” student debt for people who make less than $125,000 and went to a public university.”
March 2020: That’s when Biden pledged to cancel a minimum of $10,000 per person in federal student loan debt in a tweet on March 22, and outlined a plan to do so in a Medium post on April 9.
What We Don’t Know
The Post reports it is still unclear if the White House plans to require interest and payments to begin again at the end of August, which is when the current moratorium is scheduled to expire. The moratorium has been extended six times since March 2020, and started at the beginning of the Covid-19 pandemic.
Big Number
15 million. That’s how many people who would have their student loan debt eliminated if $10,000 worth of loans were canceled, according to the Committee for a Responsible Federal Budget.
Key Background
Democrats have urged the president to take action on canceling some, if not all, of the debt. Some Democratic lawmakers, including Senate Majority Leader Chuck Schumer (D-N.Y.) and Sen. Elizabeth Warren (D-Mass.), have pushed for the administration to cancel at least $50,000 per borrower. Some Republicans have argued against forgiveness, saying it would add to inflation issues in the country, or that it is an attempt for Biden and Democrats to improve their approval rating ahead of the midterm elections later this year.
Further Reading
Biden Could Cancel Student Loan Debt This Saturday (Forbes)
White House Said To Eye Income Caps For Student Loan Forgiveness (Forbes)
Biden May Cancel ‘Some’ Student Debt—But Rules Out Canceling $50,000 Per Borrower (Forbes)
