According to reports, the White House of Biden is considering whether to “cancel” student loans up to $10,000 for borrowers. This decision is expected to be made Wednesday.
Even though student debt is a hotly contested topic among Democrats, President Biden continues to play the game down the road. He simply continued the Trump administration’s decision not to pay student loans due to the Chinese coronavirus epidemic.
Many borrowers have not paid a single payment for over a year. And many are hopeful that they will never have to, as far-left Democrats continue pressure on Biden, to cancel student loan debt or at least a significant portion.
CNN was told by a source that the White House will announce Wednesday that it is cancelling up to $10,000 of student loan debts for those earning less than $125,000 per year.
According to sources familiar with the internal discussions within the administration, in addition to the standard of forgiveness of student loans for those who have a certain income, officials from the administration recently discussed the possibility for additional forgiveness for subsets.
The White House is still not clear on how it will respond to the continued pause in student loan payments. They are expected to resume in September.
The hashtag #CancelStudentDebt became a trending topic on Twitter as a result. For example, Cori Bush (D-MO), a radical left Rep., demands that Biden cancel student loans and tie it to the pursuit “racial. gender. and economic justice.”
Senator Elizabeth Warren (D.MA) has been calling for Biden’s action to cancel student loan debt since long. Her cries are continuing.
She said, “President Biden should #CancelStudentDebt” to help reduce the racial wealth gap between borrowers, provide relief for the 40% of borrowers that never finished their degrees, and give working families the opportunity to purchase their first home or to save for retirement.” It’s the right thing.”
“If we can bailout Wall Street after their greedy, recklessness and illegal behavior drove them into the worst recession ever recorded, then YES — We absolutely can cancel every cent of student debt,” Sen. Bernie Sanders (I-VT), agreed.
Biden’s Wednesday announcement is expected two months before the midterm elections. This move will be embraced by Democrats as they fight for their majority in the Senate and House.