What are the income limits for student loan forgiveness?
President Biden’s campaign pledge to forgive up to $10,000 in student loan debt for Americans may be getting closer. Although details of who exactly would benefit from the action were not presented, he said he would outline his plan in a few weeks.
However, his publicist Jen Psaki Told press aboard Air Force One which the president is “taking action or considering action to help people earning less than $125,000 a year.” Despite constant pressure from members of his party, Biden reiterated that he was unwilling to forgive $50,000 in student loan debt as requested.
After delaying Biden takes action
Biden has been reluctant to use executive action to write off student debt, instead urging Congress to pass legislation to provide relief to borrowers. White House aides said Bloomberg that Biden’s team is split on the merits of a broad pardon.
The biggest concern expressed by deficit hawks is that it could worsen inflationn that more than 40 percent of voters already blame the president. The rising cost of just about everything is expected to weigh on Democrats in the November midterm election results.
High inflation has helped bog down passage of the rest of his policy agenda to invest in families and make the US economy carbon-free. With a lack of momentum in Congress, Biden told the Congressional Hispanic Caucus in late April that he was prepared to use executive action to provide broader student debt relief.
His administration has already canceled $17 billion in student debt for about 725,000 borrowers. The Department of Education recently announced that Federal Student Aid will make a one-time loan adjustment for borrowers who have been improperly coerced into forbearance. It is estimated that this measure will result in immediate debt cancellation for tens of thousands of people and bring millions more closer to debt cancellation.
Cancellation of student loan debt has strong support
A recent survey from Morning Consult and Politico shows that Americans, even those without student debt, have a strong support the cancellation of certain student debts. The survey showed that 32% of respondents support the cancellation of some loans for Americans, shared equally between those who support such a measure for all and only for low-income borrowers.
Another 32% were in favor of canceling all student debt, with 19 percent believing the federal government should cancel the outstanding balance for all Americans. Of the respondents, 80% had no student debt.
Student loans suspended until September
Student borrowers have had vacations to pay off student loans or worry about accrued interest since March 2020. The payment freeze has been extended six times, most recently Biden extended the moratorium until August 31, 2022. Further lawsuits from the measure have not yet been ruled out.