The administration is also considering extending the pause on student loan repayments.
President Joe Biden is considering forgiving $10,000 in student loan debt per borrower and extending the current pause on repayments, according to published reports.
Citing people familiar with the matter, the Philadelphia Inquirer reported Biden’s payment pause could extend either through the end of 2022 or until next summer. The current moratorium on student loan payments expires Aug. 31.
Debt forgiveness could follow but the exact amount is unclear and will likely fall short of the $50,000 per borrower civil rights organizations have advocated. Debt forgiveness will probably include some form of caps between $125,000 to $150,000 in annual income to target lower income earners.
The pause on student loan repayments were first scheduled to resume May 1 after being halted since early in the COVID-19 pandemic. That deadline was later pushed back to the end of August.
The action applied to more than 43 million Americans who owe a combined $1.6 trillion in student debt held by the federal government and includes more than 7 million borrowers who have defaulted on student loans, meaning they are at least 270 days late on payments.
Look, I get why the President and some Democrats are wary of being too bold on these matters just prior to the mid-terms.
There is a huge selfish streak in the American spirit right now, and handing away too much too soon to a population — college students — that has already been broad-brushed as entitled and whiney is just too big a risk for a population that largely sits out elections in the best of times.
If college-aged people would become a more reliable voting bloc I think politicians would be more likely to risk big things for them.
However, average community college tuition is around $3,000 a year in-state. Add school expenses, let’s call it conservatively an average of $16,000 for a 4-year community college degree.
Let’s make the forgiveness at least that much, for now.
Then take another stab at it after the mid-terms.
Read more about possible loan forgiveness here.