Biden considers income stipulations on student loan forgiveness: report

(The hill) – President Biden plans to limit student loan forgiveness to people earning below a specific income, three sources familiar with the matter Told The Washington Post.

Authorities are considering limiting the waiver to those earning less than $125,000 or $150,000 as an individual or $250,000 or $300,000 for couples filing taxes together.

“There are different proposals floating around the administration on how to structure this,” one person told the Post. “Over the past week in particular, the administration and congressional staff have focused the debt cancellation conversation on how best to fulfill the president’s desire to ensure that the most economically vulnerable people in debt benefit of any action.”

One of the arguments Republicans use against student loan relief is that it will benefit high-income Americans who are able to repay their debt.

The sources told the outlet that the conversations are still in the early stages and that many changes could occur before an official plan is announced.

Earlier this week, Biden denied debt relief reaching $50,000 per borrower, but said he would have more to say on the matter in the coming weeks.

“I’m looking at facing debt reduction,” Biden said. “I am not considering a $50,000 debt reduction, but I am carefully considering whether or not there will be additional debt reduction and will have a response on this within the next two weeks. .”

Since his 2020 presidential campaign, Biden has promised to eliminate at least $10,000 in student debt per borrower, but fellow Democrats and activists are pushing for more ahead of the midterm elections.

Biden delayed the issue by continuing to extend the student loan payment freeze that began during the pandemic due to job loss.

Biden extended the resumption of payments twice, with borrowers expected to start paying again in early September.

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