White House: No decision made on student loan forgiveness

According to a White House spokesperson, President Joe Biden’s administration has not made a final decision on student loan cancellation, despite reports that it was preparing to eliminate $10,000 in student debt per borrower.

Three people acquainted with the idea were quoted in the Washington Post piece. According to two of them, the $10,000 debt forgiveness would be available to Americans who earned less than $150,000 in the previous year, or less than $300,000 for married couples filing jointly.

The report, according to White House spokesman Vedant Patel, was false. “No decisions have been made yet. But as a reminder, no one has been required to pay a single dime of student loans since the president took office,” Vedant told Reuters.

The current government interest and payment halt for COVID-19 students end at the end of August. Details could alter, according to the anonymous sources who spoke to the newspaper.

According to research by economists at the New York Federal Reserve, forgiving $10,000 per student would result in the forgiveness of $321 billion in federal student loans, wiping out the entire total for 11.8 million borrowers, or 31%.

“Administration actions have already provided more than $18.5 billion in targeted debt relief to more than 750,000 borrowers. Not to mention tens of billions more saved by the 41 million borrowers who have benefited from the extended student loan payment pause,” Patel added.

Student debt forgiveness has become a top concern for many liberals, and it’s a move that might boost Democratic support among younger and better-educated voters ahead of November’s midterm legislative elections.

However, the Biden administration has been hesitant to make an unprecedented unilateral cancellation of government-owned college debt, a move that would put his legal powers to the test.

Biden has instead asked Congress to pass a debt-forgiveness bill that he can sign.

Since the outbreak of the COVID-19 pandemic in 2020, the federal government has allowed 43 million borrowers to default on $1.6 trillion in student loans.

On April 28, Biden told reporters, “I am considering dealing with some debt reduction.” He stated that he was not considering the $50,000 debt reduction advocated by certain radical Democrats.

21 Responses

  1. biden gives away money like water. This country can’t afford his reckless spending. You take out a loan, you pay it back!

  2. So people that have gone to College and paid off their debt get a refund in order to make things equal?

  3. Doesn’t that mean that taxpayers will pay the debts of strangers, in addition to their own debts? How much more psychopathic, abusive madness are Americans going to be subjected too!

  4. Personally they should pay their own debt, there are many that did it the right way. If you pay this for them now you should go back and repay the honest ones that did it on their own. Have you decided to treat this generation like babies? They need to learn to be responsible like the ones that did it the right way. You need to be sued if you do this, they need to come together and take you down.

  5. It would be unfair, and hopefully unconstitutional, for the administration to favor citizens with federal student loans and not those who have student loans not backed by the Feds. Additionally, there are those who have paid off their student loans already who would come up on the losing end in the Biden arrangement.

  6. If he wants to forgive student debt he should also reimburse the people that paid for college out of
    their own pocket. At least give them the same 10,000. just to be fair!!!

  7. He will get crushed by everyone who paid off their loans & everyone who didn’t go to college
    It is a real looser for Democrats to please their woke minority of lazy bums
    You borrow , you pay back !!!!!!!

  8. Who is paying for all of these bills passed? Just ridiculous! What about people who paid for their children’s college? How are they rewarded? Government is out of hand with all these freebies! Vote Republican get these life time government people out of office!!

  9. This is not fair to the students that suffered while repaying their student loans. Some had debt for several years. It’s a stab in the back to those students who paid their loan off themselves.

  10. My son and I both worked hard, putting repaying our student loans before anything else. We knew we were obligated to do this. Along with Biden’s other economically disastrous policies, this one is outrageous. It is nothing other than another kick in the teeth for trying to do the “right “ thing. Thank you.

  11. If they cancel any debt it should be considered taxable income. I personally am against forgiveness. Much of what is claimed to be college debt is actually living expenses that would have been incurred anyway if they had not been students. Many of us worked part time and summers to be able to go to college. Forgiving debt is not fair to the millions of us who worked and repaid any loans we had.

  12. Forgiveness of student loan debts with the asset threshold of $150,000 or $300,00 does not make sense. A majority of Americans don’t earn more than half that amount. At a time when our economy is in tatters, and our borders are open, where does the government come up with tax resources to prop up our leaders’ political ambitions? Besides, the hard-working and responsible Americans who completed college trying to avoid loans by inching through college some courses at a time are insulted by this move. Loans are obligations that you do not have to go for. We are teaching our young citizens the wrong thing. Debts have to be paid back and the government should stay out of rescuing people from obligations that they have committed themselves to, voluntarily. So, why not forgive Veterans’ mortgage loans, after they have paid some of it? After all Veterans have risked their lives to preserve the democratic values that we all cherish. How about those who have paid up their student loans whose pay is under the threshold mentioned by the Democrats, will they get refunded? You have more social problems to deal with, all of you politicians. Homelessness here, yet encouraging illegal immigration; schools underfunded but abortion clinics promoted and funded; law enforcement officers, underfunded and under-equipped, yet expected to answer calls and blamed for slow responses to emergency calls. Wake up, America. The world is watching how your democracy proceeds . No guns for the ordinary citizens to make themselves secure at home, yet you have government officials have the taxpayers pay for their security with armed escorts and guards. How hypocritical and shameful is that?

  13. My husband and I paid for our education and we don’t think we should have to pay someone else’s debt. Go to work like we did and pay it back

  14. My husband and I started saving for college soon after our third child was born. It was not easy but we wanted to be prepared. The oldest earned a degree in psychology, the second attended business school to become a legal assistant and the youngest got a degree in history and
    archaeology and is now managing a large corporation. The best thing is that they finished school debt-free & we didn’t have to borrow!

  15. That would be the most unfair, the most disasterous, the most stupid move that could be made. Our country is so far in debt that the very thought of getting more by forgiving those that knowingly contracted those debts is unforgivable. Hopefully there are still a few common sense Democrats that will not let this happen. If it does go through I suggest that the Democrat politicians make it up by forgoing their salaries until the debt is covered.

  16. What about the people that have already paid back their loans? It sure wouldn’t be fair to them.

  17. A person that went to college knew the cost when they signed up. Gives them education for much better jobs. They should pay not me

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