Biden was asked about $10,000 student loan forgiveness. Here is what he said.
President Joe Biden was asked about $10,000 student loan forgiveness. Here is what he said.
Here’s what you need to know.
For almost two hours yesterday during its premiere press conference of the year, Biden answered a wide range of questions on topics ranging from his legislative agenda to the Covid-19 pandemic. Then came the question student borrowers have been asking for months. The answer could determine if your student loans are forgiven.
Student Loan Cancellation: What Did Biden Say?
The last question from the press conference began with this: “You campaigned to cancel $10,000 in student loans. Do you still plan to do it and when? »
Is student debt cancellation the next step? The question refers to Biden’s campaign proposal when he ran for president. Biden has long supported $10,000 in large-scale student loan forgiveness. However, it has been consistent that Congress should cancel student loans. Biden maintained this position while he was president.
However, the reporter asked a second, unrelated question immediately after she asked her student loan forgiveness question. Biden answered the second question in detail. After finishing his response, he noted that the press conference lasted almost two hours and decided to end it there. Thus, Biden did not directly answer the question about student loan forgiveness.
Biden supports canceling student loans, but it’s not his top priority
Let’s be clear: Biden supports large-scale student loan cancellation. He’s repeated it several times over the past few years. His position has been consistent since he was a presidential candidate: Congress should cancel up to $10,000 for student loans to student borrowers. Biden has said he is ready to forgive student loans for millions of student borrowers, but Congress has failed to pass any legislation. Biden has said he will sign any student loan bill Congress sends to his desk. (According to Brookings, student loan forgiveness is regressive and only targeted student loan forgiveness works).
Some borrowers and student loan advocates may be frustrated that Biden has not signed into law large-scale student loan forgiveness. A quick glance at any social media platform will show repeated calls for Biden to “cancel student loans today.” However, that shouldn’t be surprising. Of all the issues Biden takes on, large-scale student loan cancellation hasn’t been the top priority. That said, Biden has forgiven $12.7 billion in student loans for hundreds of thousands of student borrowers. (Student borrowers will get $15 billion in student loan forgiveness). Yes, that’s a fraction of the $1.7 trillion in total student loan debt, but it’s still a significant number. Biden also reshaped the student loan landscape, creating more consumer-centric student loan policies and easing the path to student loan forgiveness. (How Federal Student Loans Will Change This Year).
Canceling student loans isn’t Congress’ top priority, either.
Importantly, canceling student loans is also not the top priority for many members of Congress. In theory, on social media, canceling student loans can be an important political goal. Legislatively, however, this has not been the top priority. Bills have been proposed to cancel student loans. However, there have been no votes on large-scale student loan cancellations or real progress on bipartisan higher education reform. (Here’s Who Won’t Get Student Loan Forgiveness). In the current Congress, the prospects for large-scale student loan cancellations are dim. Beyond progressive circles, lawmakers in both parties do not support large-scale student loan forgiveness of $50,000, $10,000 or any other amount. Some say student loan forgiveness could be the reason Democrats lose the midterm election. That’s not to say there aren’t advocates on both sides of the aisle who want to reform higher education. (Here’s what the Republicans mean for your student loans). As Biden faces an uphill legislative battle, including criticism of governing too far left, Biden could begin to pivot toward a more moderate approach closer to President Bill Clinton. If this happens, large-scale student loan cancellation may be less likely than it already is.
The bottom line: There may be more student loan forgiveness, but don’t expect everyone’s student loan forgiveness. Temporary student loan relief will end, so make sure you’re ready for the restart of student loan repayment. Evaluate all your options. Here are some popular ways to save money and pay off student loans faster: