Biden’s decision on student loan forgiveness is likely to come in July or August, report says

The Wall Street Journal reported on Monday that a decision on student loan forgiveness will not be made until later this summer.

President Joe Biden said in May that he would be sharing his plans in a couple of weeks.

According to The Wall Street Journal, the White House is expected to make a decision on forgiveness in July or August.

The political and financial factors of canceling billons of dollars in education debt are probably the cause of the delay. There is no precedent for that.

A quarter of borrowers were already behind on their payments before the public health crisis, and the country's student loan balance surpasses credit card or auto debt.

The former SEC chief economist thinks it is a good time for young investors to put money in the market.

Biden said on the campaign trail that he was in favor of clearing loans. It would cost $321 billion to forgive all of the student loan debt.

There is concern that the announcement would cause more disappointment than anything else. Three times that is the average education debt balance.

Chuck Schumer, the Senate's top Democrat, is pushing the president to cancel at least $50,000 for everyone.

$10,000 isn't enough for Black student loan borrowers, says the NAACP Wisdom Cole is the national director of the association's youth and college division.

All borrowers wouldn't be happy if there was a lot of forgiveness.

3 million borrowers who are more than $100,000 in the red would still be stuck with large balances even if 50,000 borrowers were erased.

Some Republicans have said they would try to block an effort by the president to cancel the debt

The federal student loan is on hold until at least the end of August as part of a relief policy that started in March 2020. Almost all borrowers have stopped making payments.