“Some Democrats and activists have insisted that President Joe Biden needs to cancel at least $50,000 per borrower to make a meaningful impact on the country’s $1.7 trillion outstanding student loan balance.”
Joe Biden has been under pressure from the progressive wing of his party to cancel student loan debt. The idea isn’t very popular with anyone else, but it looks like Biden is going to do it.
The current plan is to allow $10,000 per borrower.
Brett Samuels reports at The Hill:
Biden zeroes in on plan to cancel $10,000 in student loans per borrower
President Biden is nearing a decision on student loan debt forgiveness, with the president and his team zeroing in on canceling $10,000 per borrower, with some potential caveats.
White House officials cautioned no decision has been finalized as Biden continues to weigh his options. The president is scheduled to speak at the Naval Academy’s commencement ceremony on Friday and at the University of Delaware’s ceremony on Saturday.
Multiple reports indicated Biden considered using the weekend commencement ceremonies to announce some student debt forgiveness, with The Washington Post reporting the timing was changed in the wake of a school shooting in Uvalde, Texas, that left 19 children dead. A White House official disputed that was the case, however.
“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,” deputy press secretary Vedant Patel said.
Of course, none of this is good enough for the left.
The average student loan debt is over $37k
They're going to try to get away with doing as little as possible, then get offended when it doesn't translate into approval bumps
$10k doesn't address the problem https://t.co/pHKYKArzBY
— Michael Sainato (@msainat1) May 27, 2022
$10k means tested forgiveness is just enough to anger the people against it *and* the people who need forgiveness the most.
$10k relieves most the people who owe the least. What relief is there for the most desperate? For them, interest will undo that 10k fast. We can do better. https://t.co/HhfWbeCf0v
— Alexandria Ocasio-Cortez (@AOC) May 27, 2022
.@DerrickNAACP on reports Biden will cancel $10K in student debt: "President Biden, canceling $10,000 in student loan debt is like pouring a bucket of ice water on a forest fire." pic.twitter.com/CzJNugwBGS
— Ayelet Sheffey (@arsheffey) May 27, 2022
Annie Nova of CNBC has more on that:
As Biden administration leans toward $10,000 in student loan forgiveness, advocates push back
Advocates expressed anger and disappointment on Friday in response to news that the Biden administration is leaning toward forgiving $10,000 in student loans per borrower.
Some Democrats and activists have insisted that President Joe Biden needs to cancel at least $50,000 per borrower to make a meaningful impact on the country’s $1.7 trillion outstanding student loan balance. More than 40 million Americans are in debt for their education, and about 25% of those borrowers are in delinquency or default.
“It’s an absolute insult,” said Thomas Gokey, co-founder of the Debt Collective, a national union of debtors. “This is less than what he promised on the campaign.”
While running for president, Biden had vowed immediate debt cancellation of $10,000 per borrower, and he hadn’t said anything about limiting the relief to people who earn under a certain amount. Now the administration is looking at imposing income caps of $150,000 for individuals and $300,000 for married couples for the relief, according to The Washington Post.
Charles C.W. Cooke of National Review reminds us that even Nancy Pelosi said Biden doesn’t have the authority to do this.
The executive branch has no generalized power to forgive student debt. Asked about the idea last year, Nancy Pelosi confirmed simply that “the president can’t do it. That’s not even a discussion.” https://t.co/eWlSNoJCpU
— Charles C. W. Cooke (@charlescwcooke) May 28, 2022
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