President Biden said on Thursday he’s looking into offering a solution to student loan debt, but he will not be canceling $50,000.
After speaking on funding for Ukraine, Biden spoke about the student loan debt that exceeds more than $1.7 trillion and has an estimated 10 million people in default.
I am considering dealing with some debt reduction. I am not considering $50,000 debt reduction. But I’m in the process of taking a hard look at whether or not there are going – there will be additional debt forgiveness, and I’ll have an answer on that in the next couple of weeks.
He didn’t specify just how much debt he would cancel, but while campaigning for president Biden mentioned that the amount being considered is $10,000.
California Democratic Rep. Nanette Barragá said, Biden seemed “positive” about canceling $10,000 for borrowers at the Congressional Hispanic Caucus on Monday, CNN reports.
According to CNBC:
“Canceling $10,000 per borrower would wipe out $321 billion of federal student loans, and eliminate the entire balance for nearly 12 million people. Around 70% of student loan borrowers would still be left with the debt.
Senate Majority Leader Chuck Schumer of New York and Sen. Elizabeth Warren of Massachusetts have requested Biden to cancel up to $50,000 of student loan debt for each individual.
As you know, he recently extended the pandemic pause plan until August 31st.
As previously reported, the US Dept of Education the US Department of Education agreed to cancel $415 million of student loan debt in February.
The website stated:
Nearly 16,000 borrowers will receive $415 million in borrower defense to repayment discharges following the approval of four new findings and the continued review of claims.
This includes 1,800 former DeVry University students who will receive “approximately $71.7 million in full borrower defense discharges.” It was determined the university gave widespread misleading information about job placement rates.
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