The White House is preparing to announce a student loan relief plan as early as Wednesday
According to the Washington Post, the White House hasn’t finalized details on broad student loan forgiveness. (Other reporting notes student loan forgiveness could come as early as tomorrow)
The White House forgive up to $10,000 for some borrowers and further extend the current freeze on loan repayment, according to several people familiar with the plan.
The White House has focused on canceling $10,000 for borrowers who make $125,000 or less annually, which would fully erase the student debt for millions of Americans.
there are several reasons why the Biden administration is carefully weighing the decision on broad student loan cancellation.
1. Student loan forgiveness could increase Inflation
2. Student loan cancellation could be perceived as wealth redistribution
3. Americans without student loans may not want to pay for other people’s student loans
3. Americans without student loans may not want to pay for other people’s student loans
Supporters of wide-scale student loan cancellation want a financial lifeline in the wake of the Covid-19 pandemic and an uncertain economy.
They also want Biden to fix a broken student loan system that has created disparities
They also want Biden to fix a broken student loan system that has created disparities