WASHINGTON, D.C., August 23, 2022 – A report from The Hill today indicates that President Joe Biden may soon fulfill his campaign promise to cancel student loan debt with an announcement as early as tomorrow. For over a year, high-ranking Democrats have been urging Biden to forgive student loan debt.
The exact amount he will cancel is still unknown. Though he promised to cancel a minimum of $10,000 per borrower back in 2020, some are pushing for $50,000, while others urge cancelling all $1.75 trillion of student debt in the US.
According to The Hill’s report, “sources said President Biden’s intended measure will include at least $10,000 in loan forgiveness for borrowers who make less than $125,000 annually, as well as another payment freeze for roughly four months” through December 2022, a month after the mid-term elections.
In April, President Joe Biden announced that the student debt moratorium would be extended until Aug. 31, marking the seventh postponement since his predecessor initially enacted the freeze in March 2020.
According to a Bloomberg article by Nancy Cook, forgiving student loan debt will cost taxpayers over 10 years $300 billion for borrowers earning less than $125,000 per year with a one-time forgiveness of $10,000. When eliminating the income threshold and forgiving up to $50,000 per borrower, that cost to taxpayers increases to $980 billion with the majority of relief going toward borrowers in the top 60% of earners.