President Biden is considering limiting student loan forgiveness to individuals with less than a specified income, according to three sources familiar with the issue. Tell Washington Post.
Officials are looking to limit cancellations to those with incomes below $125,000, $150,000 as an individual, or $250,000 or $300,000 for married couples who file taxes together.
“There are different proposals being put out around the administration about how this should be organized,” one person told the newspaper. “Over the past week in particular, administration and congressional staff have focused the conversation on debt forgiveness on how best to satisfy the president’s desire to ensure that the most economically vulnerable people with student debt benefit from any action.”
One of the arguments Republicans use against student loan forgiveness is that it will benefit high-income Americans who are able to pay their debts.
The sources told the outlet that the talks are still in their early stages and many changes may be revealed before an official plan is announced.
Earlier this week, Biden denied debt relief was as high as $50,000 per borrower, but said he would have more to say on the issue in the coming weeks.
“I’m thinking about dealing with some debt reduction,” Biden said. “I’m not considering a $50,000 debt reduction, but I’m in the process of taking a closer look at whether or not there will be additional debt forgiveness and I’ll have an answer to that in the next couple of weeks.”
Since his 2020 presidential campaign, Biden has promised to cancel at least $10,000 of student debt for every borrower, but fellow Democrats and activists have been pushing for more ahead of the midterm elections.
Biden has been delaying this issue by continuing to extend the freeze on student loan payments that began during the pandemic due to job losses.
Biden has extended the resumption of payments twice, with borrowers due to start paying again at the beginning of September.