Report: Biden Likely To Make Decision On Student Loan Forgiveness Later In Summer

US President Joe Biden speaks about the May 2022 Jobs Report from the Rehoboth Beach Convention Center on June 3, 2022, in Rehoboth Beach, Delaware. - US employers added 390,000 jobs last month, the government report... US President Joe Biden speaks about the May 2022 Jobs Report from the Rehoboth Beach Convention Center on June 3, 2022, in Rehoboth Beach, Delaware. - US employers added 390,000 jobs last month, the government reported on June 3, 2022, a sign of a slowdown in hiring but still a better-than-expected result. The jobless rate held steady at 3.6 percent for the third consecutive month, just a tenth of a point above the pre-pandemic level of February 2020, the Labor Department said. (Photo by MANDEL NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images) MORE LESS

President Biden will likely make his decision on partial student loan forgiveness for millions of borrowers later this summer, administration officials told the Wall Street Journal.

Officials reportedly told WSJ that the President is looking to announce his plans in July or August, closer to when loan payments and interest are scheduled to resume at the end of August after being put on pause during the COVID-19 pandemic. Biden and his senior advisers are reportedly continue to weigh potential political and economic backlash in response to any student loan forgiveness-related decision.

A range of proposals have been drawn up by White House officials, administration officials and others familiar with the matter told WSJ. The President has yet to make a final decision.

WSJ’s report comes weeks after a number of leaks on the President’s thinking regarding federal student loan debt forgiveness in recent weeks, suggesting efforts by the White House to take the temperature before finalizing a plan. The President previously said in late April he was closing in on a decision to cancel some student loan debt and would make a decision in the next couple of weeks.

Late last month, the Washington Post reported that the President was on the cusp of canceling up to $10,000 of federal student loans per eligible borrower. The relief would reportedly be income-targeted to single people who earned less than $150,000 in the previous year.

The President reportedly planned to announce his decision during his commencement speech at his alma mater, the University of Delaware, late last month.

Biden ultimately held off on the announcement in light of the elementary school massacre in Uvalde, Texas earlier that week, the Post reported.

The President has been clear about his rejection of a proposal backed by Senate Majority Leader Chuck Schumer (D-NY) and Elizabeth Warren (D-MA) to cancel up to $50,000 in student loans. Biden has also expressed disinterest in forgiving loans for students of elite universities.

Dear Reader,

When we asked recently what makes TPM different from other outlets, readers cited factors like honesty, curiosity, transparency, and our vibrant community. They also pointed to our ability to report on important stories and trends long before they are picked up by mainstream outlets; our ability to contextualize information within the arc of history; and our focus on the real-world consequences of the news.

Our unique approach to reporting and presenting the news, however, wouldn’t be possible without our readers’ support. That’s not just marketing speak, it’s true: our work would literally not be possible without readers deciding to become members. Not only does member support account for more than 80% of TPM’s revenue, our members have helped us build an engaged and informed community. Many of our best stories were born from reader tips and valuable member feedback.

We do what other news outlets can’t or won’t do because our members’ support gives us real independence.

If you enjoy reading TPM and value what we do, become a member today.

Latest News
Comments
Masthead Masthead
Founder & Editor-in-Chief:
Executive Editor:
Managing Editor:
Associate Editor:
Investigations Desk:
Reporters:
Newswriters:
Director of Audience:
Editor at Large:
General Counsel:
Publisher:
Head of Product:
Director of Technology:
Associate Publisher:
Front End Developer:
Senior Designer: