As soon as this weekend, President Biden could announce a plan to cancel $10k in student debt per borrower, according to WaPo, citing three people with knowledge of the matter.
Biden could make the announcement at the University of Delaware’s commencement ceremony on Saturday. The plan would apply to Americans who earned less than $150k in the previous year or less than 300k for married couples filing jointly.
On April 6, the White House announced it would extend the pause of federal student loan repayments through August 31. It wasn’t clear if the administration would extend the moratorium beyond this.
The decision to wipe out $10k of student debt per borrow who meets requirements comes as President Biden’s approval ratings collapse.
Notice how the number of stories in the news of “student debt loan forgiveness” is soaring ahead of the midterms, but Biden’s polling numbers remain cratered.
The Committee for a Responsible Federal Budget, a nonpartisan think tank, said canceling $10k of student debt per borrower would cost a whopping $230bln.
WaPo said, “most of the nation’s 41 million student borrowers stand to benefit.” Though, who exactly benefits?
Goldman Sachs’ Jan Hatzius found canceling the debt would mainly benefit middle- and upper-income households, contrary to the administration’s claims it would help the working poor.