Biden would consider canceling a large student loan

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The Biden administration is sending signals this week that large-scale student loan cancellation is being seriously considered. Here is the latest.

Biden reportedly confirms student loan forgiveness is definitely on the table

Biden reportedly told members of the Congressional Hispanic Caucus this week that officials are seriously considering the widespread cancellation of student loans. According to CBS News, a lawmaker has confirmed that Biden is considering his options, including forgiving student loan debt “entirely” for a wide range of borrowers.

Rep. Tony Cardenas (D-CA) told The Washington Post that Biden is “incredibly positive” about enacting broad student loan forgiveness via executive action, and that Biden may act soon.

The comments reported by Biden are just the latest in a string of suggestions from senior White House officials and key Democrats in Congress that the administration is very seriously considering enacting a broad-based student loan forgiveness. Earlier this month, Sen. Chuck Schumer (D-NY) — who became a leading Biden supporter using executive action to write off student debt — told activists that during recent conversations on the issue, the president was “more open than ever. .”

Previously, White House press secretary Jen Psaki had told reporters that Biden “has not ruled out” using executive action to write off substantial amounts of student loan debt. And in March, White House Chief of Staff Ronald Klain said, “Whether or not there is executive action [on] canceling student debt…is a decision we will make” before student loan repayments resume.

The comments from Biden and other White House officials reflect a potential shift in the president, who has previously expressed reluctance to unilaterally write off large amounts of student loan debt through executive branch action.

Biden has already forgiven $17 billion in student loan debt

The Biden administration has so far already approved $17 billion in student loan forgiveness for borrowers, according to the Department of Education. The administration has used a “targeted” approach to student loan forgiveness by easing rules and expanding access to key existing programs, such as the Total and Permanent Disability Release (TPD) program and forgiveness. public service loans (PSLF). The administration also recently extended the ongoing pause on student loan payments and interest until August 31.

Last week, the administration announced historic fixes to the struggling income-based repayment system for federal student loans, which will result in millions of dollars in near-immediate student loan forgiveness for 40,000 borrowers, according to the Department.

But $17 billion in student loan forgiveness is only a fraction of 1% of total student debt outstanding. And student loan activists and advocacy groups have urged Biden to go much further.

“We are optimistic that [the administration’s recent] A set of reforms will help many borrowers and families who felt student debt had become a lifelong burden,” the Natalia Abrams Student Debt Crisis Center said in a statement last week. “However… [m]Millions of people are in debt and a piecemeal political approach will not reach them all. To ensure that everyone impacted by the student debt crisis has the opportunity to thrive and achieve the American dream, we must largely cancel student debt now.

Further Reading on Student Loans

Who qualifies for student loan relief under Biden’s huge new income-based repayment expansion

Biden administration announces sweeping fixes to income-based repayment and student loan forgiveness programs

Forgiveness of student loans through executive action still on the table, says top Biden official

4 options for Biden to legally enact student loan forgiveness without Congress

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