President Joe Biden delivers remarks on the March jobs report from the White House’s State Dining Room on April 1, 2022 in Washington, DC.
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Tens of millions of Americans with student loans may finally learn soon what the Biden administration has decided to do, if anything, about debt forgiveness.
“Not a single person in this country has paid a dime on federal student loans since the president took office,” White House press secretary Jen Psaki said at a news conference on Monday.
She went on to say that President Joe Biden “will make a decision on student loan cancellation before the end of the student loan pause.”
Relief from that pandemic era halted bills that have been in effect for more than two years, and now expire on August 31.
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Even before the public health crisis, repayment problems were common for student borrowers.
The country’s outstanding education debt exceeds $1.7 trillion and imposes a larger burden on households than credit card debt or auto debt. About a quarter of student loan borrowers – or 10 million people – are estimated to be in a state of delinquency or default.
Experts say the financial downturn of the public health crisis has only made the situation worse. A recent study found that surveyed student borrowers reported 16% the ability to quickly go short on payment if the payment pause ends.
Although Biden did express skepticism on past student debt forgiveness, another development this week suggests he may be kicking the idea off.
When the topic came up Monday with the congressional Hispanic Caucus meeting, the president said he was currently looking to offer some form of student debt cancellation, according to arrive many reports.
Democrats and supporters have put intense pressure on the president to act before midterms, pointing to student debt cancellation as a campaign promise he can deliver without without Congress, while much of his agenda was thwarted in the House and Senate.
There is still a debate among some attorneys over whether the president has the authority to clear the debt through action.
Meanwhile, opponents of student loan cancellations say the policy forces taxpayers to pay the bills for those who already benefit from a college education and is unfair to Americans who don’t. go to college, have never taken out a loan, or have paid off their debt.
Advocates point out that the mushrooming cost of college leaves people with no choice but to take out loans if they want a well-paying job, and that people of color and women are suffered the most from the lending system. Two-thirds of federal student debt is held by women.
about 70% According to a recent study by the Federal Reserve Bank of New York, the $50,000 student loan relief relief will go to people in low- and middle-income areas.
