(CTN News) – It has been reported that the White House has denied a report that President Joe Biden will enact a $10,000 student loan forgiveness program, citing that a decision has not yet been made.
Listed below is what you need to know – and what this means for your student loans.
Is it possible to cancel your student loans? Students have been asking this question for months. “There have been no decisions yet,” White House spokesman Vedant Patel told Reuters on Friday. White House officials denied a Washington Post report that said:
- In addition, Biden will cancel $10,000 of student loans per borrower; and
- If you earn up to $150,000 in annual income or if you file jointly and earn up to $300,000, you may qualify for student loan forgiveness.
Earlier this month, the Biden administration proposed a similar income cap for student loan forgiveness. This potential income cap is $50,000 higher than the limit on the Covid-19 stimulus checks for individuals, which was set at $75,000.
Biden could cancel student loans tomorrow
Will Biden cancel student loans tomorrow? Biden will deliver the commencement address at his alma mater, the University of Delaware, tomorrow. President Biden has not yet decided whether to offer wide-scale student loan forgiveness, but he may announce his plans to do so tomorrow at the graduation ceremony. President Biden could discuss the next steps for student loan borrowers, regardless of whether he shares a full-scale plan or updates on a timeline. In an April 28 statement, Biden said he would make a decision within weeks about whether to cancel student loans on a broad scale. Since then, more than two months have passed. Biden’s announcement of student loan forgiveness would be the second major education policy plan announced in the past week. Earlier this month, the U.S. Education Department announced a major overhaul of student loan servicing.
Student loan cancellation: next steps
According to the Biden administration, students who have borrowed federal student loans haven’t had to pay a single dollar since Biden took office. So far, Biden has canceled $18.5 billion in student loans for 750,000 borrowers. In Congress, progressive Democrats have supported a proposal to forgive $50,000 in student loan debt, but the president has said he isn’t considering it. If Biden cancels $50,000 of student loan debt, it would eliminate debt for 36 million borrowers. Since the 2020 presidential election, Biden has remained focused on the forgiveness of $10,000 of student loan debt. Senator Elizabeth Warren (D-MA) and several other senators are still pressing Biden to consider student debt relief of $50,000. They have asked the president to defer a decision on wide-scale student loan forgiveness, which is why Biden may not announce a plan to cancel student loan debt at tomorrow’s graduation. August 31, 2022, is the next major deadline for student loan borrowers. Regardless of Biden’s announcement about student loan forgiveness, pay attention to the end of the student loan payment pause. A game plan should be in place before student loan payments resume. Some options include:
- Student loan refinancing (lower interest rate + lower payment)
- Income-driven repayment (lower payment)
- Student loan forgiveness (federal student loans)