August is set to be a pivotal month for federal student loan policy as the clock ticks for President Joe Biden to follow through on his promises on debt cancellation.
By the end of the month, Biden will make a call on student loans.
The pause on student loan repayments is set to end in August.
When Biden was asked by a reporter if he would make a decision on student loans by the end of August, he replied, "by the end of August."
According to a report last week, Biden is considering forgiveness of student loan debt for most borrowers.
The Education Department has prepared a plan to act on student loan forgiveness if Biden signs off on a mass cancellation.
Despite repeated calls from Democratic lawmakers, Biden hasn't taken action on his promise to cancel a minimum of $10,000 in student loan debt. More than a dozen senators, including Senate Majority Leader Chuck Schumer (D-N.Y.) and Sen. Elizabeth Warren (D-Mass.) called on Biden to cancel up to $50,000 in student loan debt. According to an NPR/Ipsos poll conducted last month, 45% of Americans are in favor of a cancellation of up to $10,000. According to a source, Biden may only forgive debt for people who make less than $150,000 a year. The Education Department told loan servicers not to send out billing reminders to borrowers, a sign that the pause on repayments will continue. The left of Biden has called for the cancellation of student loan debt.
The Government Accountability Office found that the federal student loan program cost the government $197 billion between 1997 and 2021.
According toForbes, Biden may offer student loan relief and another payment pause.
Biden has three major decisions to make regarding student loan forgiveness.
There are important deadlines for student loans.
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