Biden Will Reportedly Delay Decision On Student Debt Forgiveness Until July Or August

The new date is Jun 6, 2022.

According to the Wall Street Journal, President Joe Biden will likely delay a decision on federal student debt forgiveness until later this summer, leaving tens of millions of borrowers waiting to see if he will fulfill his promise of $10,000 per person debt forgiveness.

Citing unnamed administration officials, the Wall Street Journal reported that Biden is likely to announce his plans on student-loan debt in July or August.

Biden is expected to make a decision on student loan debt in the weeks leading up to the fall elections.

The current pause on student debt repayments is set to end.

In the next couple of weeks, Biden said he would make a decision on whether to forgive future student loan debt.

The White House did not reply immediately.

The Department of Education said that the pause would allow borrowers time to plan a return. Some advocacy groups criticized the Biden Administration for leaving borrowers hanging after the extension was announced. Student loan debt is the second-highest category of consumer debt after mortgage debt in the U.S. According to an analysis by the Federal Reserve, $50,000 in student debt forgiveness would eliminate the debt of 29.9 million borrowers, while $10,000 in student debt forgiveness would eliminate the debt of 11 million borrowers. Biden has overseen the cancellation of $16 billion in student loan debt, but hasn't fulfilled his campaign promise to eliminate $10,000 in debt per borrower.

Biden has eliminated more student loan debt than any previous president, but he is under pressure to do more. Senate Majority Leader Chuck Schumer and Sen. Elizabeth Warren have both called for the elimination of the federal government. Some Republican lawmakers criticized the actions Biden has already taken to forgive some debt, saying that debt cancellation encourages students to borrow more and will make inflation worse.

Lawmakers are expected to say after a meeting that Biden may cancel student debt soon.