In addition to the baseline student loan debt forgiveness for individuals falling within certain income levels, government officials recently announced the possibility of additional forgiveness for certain subsets of the population, according to sources familiar with discussions within the government. also discussed.
The announcement could come as early as Wednesday, but it’s not clear if a final decision has been made on the details and timing of the announcement, which could change anytime after 11 hours. The White House also plans to address in the coming days whether it will again extend the current moratorium on federal student loan payments, which are set to expire on August 31st.
Since March 2020, when the Covid-19 pandemic hit the United States and devastated the economy, most federal student loan payments have been eliminated. Biden has extended the suspension four times, arguing that federal student loan borrowers need to get back on their feet. Most recently he was done in April.
CNN has reached out to the White House for comment.
Recently, White House officials have reached out to lawmakers to discuss their thoughts on student loan debt forgiveness before the current payment moratorium expires. ‘s Chuck Schumer, Democrat Massachusetts Sen. Elizabeth Warren and Georgia Democrat Rafael Warnock met with senior White House officials, sources said.
The income cap, which has been the subject of intense debate both inside and outside the government, was also created as a buffer against criticism that amnesty would benefit those with the means to control debt repayment.
Education Secretary Miguel Cardona said on Sunday that Americans can expect a decision from the administration on student loans “in the next week or so.” With less than two weeks left, Americans are wondering if Biden will extend the current moratorium. I’ve been speculating for weeks about whether it will, or perhaps forgive some of the debt.
“We’ve been talking about this every day. The American people will hear from the president and the Department of Education in the next week or so about what we’re going to do,” Cardona told NBC’s show. Chuck Todd in “Meet the Press.”
He didn’t elaborate on the details, saying he wouldn’t get ahead of the announcement.
Some Democrats and supporters have called for Biden to substantially cancel student loan debt of up to $50,000 per borrower, but the president has consistently said he would not allow that amount. I am against canceling.
Biden has canceled more student loan debt than any other president, and his administration has spent $32 billion primarily due to defrauded and permanently disabled borrowers by for-profit colleges. I am approving the cancellation of a loan near me.
This story has been updated with additional reports.
CNN’s Sam Fossum contributed to this report.
Source: www.cnn.com
