Yes, Biden previously pledged to write off $ 10,000 in federal student loan debt
President Biden released his budget proposal last week, and the failure to forgive federal student loan debt has caught the attention of many.
UPDATE: On December 10, 2021, the Biden administration said it did not intend to extend the hiatus on federal student loan repayments. Repayments are expected to begin on February 1, 2022.
“In the coming weeks, we’ll be posting more details on our plans and engaging directly with federal student loan borrowers to make sure they have the resources they need and are in the proper repayment plan.” . White House press secretary Jen Psaki said at a briefing.
“We are still evaluating the impact of the Omicron variant. But a smooth transition to reimbursement is a high priority for the administration. The Education Ministry is already communicating with borrowers to help them prepare for the return to repayment on February 1 and has secured contract extensions with loan services, ”Psaki continued.
PREVIOUS UPDATE: On August 6, 2021, the Biden administration extended the break on federal student loan repayments until January 31, 2022.
“This will give the Department of Education and borrowers more time and more certainty as they prepare to restart student loan payments,” President Joe Biden said in a statement. declaration. “It will also ensure a smoother transition that minimizes payment defaults and defaults that hurt families and undermine our economic recovery. “
PREVIOUS REPORT: President Joe Biden released on May 28 a Proposed budget of $ 6 trillion for fiscal year 2022. While the budget included Biden’s budget infrastructure plan and the American Families Plan, there was one omission that caught the attention of a lot of people: the forgiveness of student debt.
The NAACP slammed Biden for not including the cancellation of student loans in his budget proposal, arguing that the president cannot close the racial wealth gap without also addressing student loan debt. Others said Biden previously promised to write off student loan debt.
Has Biden pledged to write off federal student loan debt?
Yes, Biden has already pledged to write off at least $ 10,000 in federal student loan debt for each borrower.
WHAT WE FOUND
When Biden ran for president, he said his agenda for work and economic recovery would focus on student debt relief. On his campaign site, he said he would “include in the COVID-19 response an immediate forgiveness of a minimum of $ 10,000 of federal student loan debt” and “forgive all federal student debt related to undergraduate tuition fees of the two- and four-year public colleges and universities; and private HBCUs and MSIs for debt holders earning up to $ 125,000.
During November 16, 2020, press conferencePresident-elect Biden again signaled his support for an immediate $ 10,000 per federal student loan borrower forgiveness.
But Biden’s commitments did not materialize in the first four and a half months of his presidency.
On the first day of his tenure, Biden extended hiatus on student loan payments until September 30, 2021.
On February 4, Democratic leaders including Senator Elizabeth Warren and Senate Majority Leader Chuck Schumer reintroduced a resolution that calls on Biden to use executive action to write off up to $ 50,000 of federal student loan debt per borrower. Warren, citing a letter from the Legal Services Center at Harvard Law School, believes the president can ask the secretary of the Department of Education to largely write off student debt.
In response to the resolution, White House press secretary Jen Psaki saidThe President has supported and continues to support the cancellation of $ 10,000 of federal student loan debt per person in response to the COVID crisis. He asks Congress to draft the proposal. And if so, if it is adopted and sent to his office, he will be eager to sign it.
Almost two weeks later, on February 17, Psaki said that Biden does not promote forgiveness of $ 50,000 of federal student loan debt per person without limitation. She said Biden would task the US Department of Justice with conducting a legal review of his authority to act on student debt relief through executive action. Psaki again urged Congress to move forward with a bill that cancels $ 10,000 in federal student loan debt, saying Biden would support and sign the law if passed.
On March 18, the Ministry of Education canceled approximately $ 1 billion in student loan debt for about 72,000 people who have been swindled by for-profit schools. While impacting those affected, the billion dollar cancellation is a small portion of total student loan debt accumulated in the United States
Ron Klain, Biden’s White House chief of staff told Politico on April 1 that Biden had asked the Department of Education to prepare a note on the president’s legal authority related to the cancellation of student debt. But two months later, no action has been taken by Biden.
According to economic data from the Federal Reserve, student loan debt in the United States totals over $ 1.7 trillion. Data from Federal Student Aid, part of the US Department of Education, shows that about $ 1.56 trillion in student loan debt comes from federal student loans borrowed by approximately 43 million people. About 15 million people in the United States have federal student loan debt that totals $ 10,000 or less, according to Federal Student Aid data.
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