WASHINGTON – President Biden has said he is “seriously considering” the forgiveness of some federal student loans on Thursday, but the amount he is considering is less than $ 50,000 per borrower, lower than some senior Democrats are seeking. since taking office.
“I am considering dealing with some debt reduction,” Mr Biden said in response to a White House question. “I am not considering reducing the debt by $ 50,000. But I am in the process of carefully reviewing whether there will be additional debt forgiveness.”
The president said there would be a response to the forgiveness of additional debts “over the next few weeks”.
Mr Biden’s comments came days after he gave one of his strongest signals so far that he wanted to cancel a student loan debt during a meeting with the Spanish-speaking group in Congress on Monday.
Democratic MP Tony Cardenas, who attended the meeting, said the president had never mentioned a specific amount he wanted to cancel, but said he was ready to forgive borrowers’ debt, whether they visit private or public institutions. When the MP reiterated that the group supports the cancellation of a $ 10,000 debt for a student loan, the president said, “You will like what I do,” according to Cardenas.
In response to the president’s meeting on Monday, some Republican lawmakers criticized Mr Biden for seeking to forgive a student loan debt. Utah Sen. Mitt Romney tweeted that “Desperate polls call for desperate action” and mockingly suggested that Biden was trying to “bribe” voters.
During his presidential campaign, Mr. Biden said he would cancel a $ 10,000 student loan debt and called on Congress to act. He extended the pandemic-related pause to pay off a federal student loan several times, most recently by Aug. 31. The White House had previously expressed concern that the widespread cancellation of federal student debt could face legal challenges if carried out through enforcement action, and the president last year asked his team to assess its legal capabilities.
The pressure on Mr Biden to act is growing as the midterm elections approach. Some Democrats, such as Senate Majority Leader Chuck Schumer and Sen. Elizabeth Warren of Massachusetts, have reiterated calls for the president to cancel a $ 50,000 student loan debt, an amount that does not appear to be on the table.
White House spokeswoman Jen Psaki said the decision to cancel the student loan debt will be made between now and August 31, when loan payments must be resumed. Some Republican lawmakers and organizations oppose extending the pandemic break, which saves about 41 million borrowers about $ 5 billion a month in interest payments on student loans. Prior to that, the break was due to expire in early May.
Meanwhile, the Ministry of Education has made some changes to existing loan forgiveness programs. Since taking office, the Biden administration has forgiven more than $ 17 billion in student loan debt, including to borrowers who have been defrauded by their schools, those with permanent disabilities, and those in income-based repayment plans, or the Income Program. forgiveness of public service loans.
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Sarah Yuol-Weiss
CBS News reporter covering economic policy.
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