The Biden administration is likely to decide on student loan forgiveness in July or August, the Wall Street Journal reported on Monday.
President Joe Biden will announce his plans on student loan forgiveness later this summer. Closer to when the pandemic-related pause in Federal student loan payments is scheduled to lapse as the Biden administration weighs the political and economic fallout of any such move.
The temporary student loan freeze started in 2020 as part of the movement to help aid families struggling during COVID-19. It was passed under the Trump administration and then extended twice during the Biden administration.
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The current administration in America ran heavily on a platform of student loan forgiveness. President Biden, on his campaign trail, said that he was in support of clearing $10,000 from borrowers’ accounts.
The U.S. has a $1.7 trillion outstanding student balance that outpaces credit card or auto debt. The average education debt balance is around $30,000. The delay in deciding on student loan forgiveness means that more than 40 million people who have student loan debt will have to wait longer to see whether all or part of their loans will be erased.
Congress is divided on the issue of forgiving student loan debt. Some members of the Senate support loan forgiveness for up to a certain amount or with conditions like income status.
However, some Republican lawmakers have accused Democrats of using debt relief as an irresponsible play for votes.
If you are one of those who is struggling with student loan debt, there are still some ways to get student loan debt forgiveness. Check out here whether or not you meet the qualification.