According to The Washington Post, which cited three sources, President Joe Biden is set to propose a plan to cancel up to $10,000 in student debt for people who qualify to depend on their income.
According to CNN, White House employees have been creating draughts but are awaiting the president’s decision.
According to the Post, the policy is expected to come with conditions, such as applying solely to people earning less than $150,000 per year. According to CNN, the income cap might be as low as $125,000.
Biden was planning to reveal his idea at his commencement speech at the University of Delaware on Saturday, but the incident in Uvalde, Texas on Tuesday, which murdered 19 students and two teachers, forced the administration to reverse direction, according to the Washington Post.
In a statement to the newspaper on Thursday, White House spokesperson Vedant Patel stated, “No decisions have been made yet.” The White House has been contacted for comment by HuffPost.
However, some progressive Democrats are becoming irritated.
“The longer the administration waits — evidently because they’re trying to figure out how many individuals to exclude from a cancellation program — the less appreciative people will be,” Rep. Mondaire Jones (D-NY) told CNN.
A second difficulty for the administration is the inflationary pressures that U.S. households have been experiencing, and there is concern that any action on student loan forgiveness could exacerbate this, especially amid fears of a possible U.S. recession.
In April, Biden stated that the White House would announce its student loan action plan in a few weeks.
“I’m thinking about getting rid of some debt.” On April 28, Biden informed reporters, “I am not considering a $50,000 debt reduction.” “I’m in the process of examining whether or not extra debt forgiveness will be granted, and I’ll have an answer in the next couple of weeks.”
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The $10,000 sum mentioned by the Post is in line with Biden’s 2020 campaign promises, but it’s still far less than what many Democratic senators have demanded.
In October 2020, Biden said at a town hall in Miami, “I’m going to make sure everyone gets $10,000 knocked off their college debt.”
The Biden administration has extended the moratorium on student loan payments through August 31, extending a policy that was implemented at the start of the pandemic.