Report: Biden Mulling Extending Student Loan Pause And $10k Forgiveness

WASHINGTON, DC - MARCH 01: US President Joe Biden delivers the State of the Union address during a joint session of Congress in the U.S. Capitol House Chamber on March 1, 2022 in Washington, DC. During his first Stat... WASHINGTON, DC - MARCH 01: US President Joe Biden delivers the State of the Union address during a joint session of Congress in the U.S. Capitol House Chamber on March 1, 2022 in Washington, DC. During his first State of the Union address, President Joe Biden was expected to speak on his administration’s efforts to lead a global response to the Russian invasion of Ukraine, work to curb inflation, and bring the country out of the COVID-19 pandemic. (Photo by Saul Loeb - Pool/Getty Images) MORE LESS

President Joe Biden is considering extending the freeze on federal student loan payments that are currently scheduled to resume next month, according to Bloomberg.

Biden is reportedly looking at keeping the pause, which expires on Aug. 31, in place until possibly the end of 2022 or until next summer.

Bloomberg also reported that the President is similarly weighing forgiving $10,000 in student debt per borrower.

Biden reportedly hasn’t made a final decision on the potential extension nor loan forgiveness.

However, the President and his advisers are worried about making an announcement on forgiveness amid growing inflation, according to Bloomberg.

Biden has paused student loan payments four times during his presidency, most recently in April. On the campaign trail, Biden said he supported forgiving some amount of federal student loan debt and said he supported forgiving at least $10,000. While progressives push Biden to cancel federal student debt entirely, some Democrats like Senate Majority Leader Chuck Schumer (D-NY) have pushed the President to embrace forgiving at least $50,000 in student debt for all.

Bloomberg’s report comes as the Education Department instructs student loan servicers to hold off on contacting borrowers about resuming payments.

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