President Biden is considering student loan debt reduction.
However, it would come with income limits.
Student loan forgiveness
President Biden is expected to lay out the specifics of his $10,000 per student debt forgiveness plan in the next few weeks. It seems that the steps he’s taking will help those making less than $125,000 a year. Read more about it here.
Biden has been hesitant to use executive action to cancel student debt. Rather, he is urging Congress to pass legislation that would provide relief. However, some are concerned that debt forgiveness could worsen inflation.
The Biden Administration has already cancelled $17 billion in student loan debt. This has impacted about 750,000 borrowers. The Department of Education has also announced that there will be a one-time adjustment of loans for borrowers who were directed into forbearance.
It is estimated that this will result in immediate debt cancellation for tens of thousands of borrowers. It will also move millions closer to debt forgiveness.