Biden Announces BOMBSHELL New Guidelines – Do You Qualify?
(TruthandLiberty.com) – In 2020, then-Democratic presidential nominee Joe Biden disagreed with his far-left colleagues running for president that executive privilege in the White House could unilaterally cancel all student loan debt. As of April 10, 2022, the Education Data Initiative said student loan debt was around $1.747 trillion, and 43.4 million Americans hold federal student loan debt.
On Monday, May 2, White House Press Secretary Jen Psaki said President Biden and White House staff are evaluating school loan forgiveness. Last week, the president revealed he was looking into $10,000 in forgiveness per debt holder but said $50,000 was off the table. It appears many ideas are floating around the White House, and an answer could come soon about what Biden will do unilaterally to forgive school loan debt.
What’s the Administration Floating Around?
The White House is debating how much forgiveness it might get away with and who would receive it. Some officials argue forgiveness should target people with incomes below a certain level. On Saturday, April 30, The Washington Post reported that the administration was considering a cap on individuals who make more than $125,000 or $150,000 per year or couples who file joint tax returns at $250,000 to $300,000.
On Monday, CNBC said that around 66% of borrowers earn under $100,000 per year. It reported the administration hasn’t set a clear limit, or there may not be one at all. The report said if the Biden administration forgave all loan amounts for people who made less than $100,000, it would cost the government $938 billion. Still, a third of borrowers make less than $50,000, costing the government $437 billion to forgive all loans to individuals in that group.
Regarding the amount of forgiveness, CNBC added that if Biden were to wipe out $10,000 from a school loan balance, it would add $321 billion to the national debt and eradicate an entire balance due for 12 million Americans. Still, 70% of student loan borrowers would continue to owe on their school loan debts.
To Forgive or Not to Forgive, Is That the Question?
There’s a lot of debate about school loan forgiveness, including questions about whether the president has any authority to forgive any amount of school loans without Congressional approval. Senate Majority Leader Chuck Schumer (D-NY) believes Biden could legally forgive $50,000 per individual but doesn’t cite the statute giving him that specific authority.
Representative Alexandria Ocasio-Cortez (D-NY) said she doesn’t like income limits. For forgiveness to have any teeth in putting a dent in income inequality and the racial wealth gap, the Democratic socialist said the president needs to start at $50,000 in debt forgiveness. Sen. Elizabeth Warren (D-MA) agreed that the larger the forgiveness, the bigger the boost to America’s economic opportunities for a better life.
Still, Republicans expressed deep reservations. Senator Susan Collins (R-ME) said debt relief shouldn’t go to the highest earners and previously said forgiving school loans to current borrowers isn’t fair to those who’ve paid off their school loan debts.
So, what will happen as the debate swirls around Washington, DC? Stay tuned.
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