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White House considers $10,000 student loan forgiveness: report


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The White House is considering a plan to write off $10,000 of student debt for borrowers earning less than $125,000, according to reports. CNN’s report.

The Biden administration has promised to make a decision on student loan forgiveness by the end of August, when monthly loan payments are scheduled to resume after being paused for more than two years as part of pandemic relief policy.

It is not yet certain how management will proceed, if at all, with the loan cancellation.

An extension of the payment moratorium has also been introduced and federal student loan providers have instructions to stop sending payment reminders to borrowers. Continuing payments without preparing the borrower for more could cause Crime rate skyrocketedExperts have warned.

The country’s student loan balance exceeds $1.7 trillion, with 40 million Americans paying off their education. Before the pandemic, when the economy was at its strongest, about 10 million borrowers were still behind on payments.

Since the campaign trail, President Joe Biden has donated $10,000 for student debt forgiveness, while his left-wing opponents, Senator Elizabeth Warren, D-Mass. And Senator Bernie Sanders, I-Vt., Announced More Revocations. Warren pledged to cancel $50,000 for most of the borrowers, and Sanders, to clear all debts.

The Washington Post has also report that the White House is leaning toward canceling $10,000. Meanwhile, the administration has been considering ways to limit relief for certain income earners to quell criticism that student debt relief is a way for better-off Americans. than.

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Biden is currently under enormous pressure to delist more than $10,000, including from groups like NAACP and legislators like Senate Majority Leader Chuck Schumer, DN.Y. Wisdom Cole, the national director of the NAACP’s youth and college division, recently said on Twitter that just shelling out $10,000 would be “a slap in the face.”

At the same time, student loan forgiveness will also anger some Americans, including those who have never taken out a loan to study or go to college. Some Republicans have said they will try to block the president’s attempt to cancel the debt. Rep. Kevin Brady, R-Texas, ranking member of the House Ways and Means Committee, recently called for student loan forgiveness”a gift for highly educated college graduates. “

Overall, however, a majority of voters (62%) support student loan forgiveness, according to a poll by Morning Consult.

White House officials did not immediately respond to a request for comment.

This is an evolving story. Please check back for updates.



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