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Student loan forgiveness: When will the Biden administration make a decision?

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The first official speech from the US government in months emerged after White House press secretary Karine Jean-Pierre commented on the plan’s release date last Tuesday.

“We will just continue to evaluate our cancellation options…so no decision has been made on that. [yet],” she said. “And the president made it clear that he would – he will have something before august 31st.”

The Biden administration has been tight-lipped on student debt plans, despite it being a key commitment when Biden was elected. August 31 also coincides with the date when repayments and debt accumulation are due to resume for the first time in two years, although a further extension of this may be a proposition.

What help should be offered?

Biden is now consider canceling up to $10,000 but limit access to assistance, according to a number of American media. Only single borrowers earning less than $150,000 a year, or less than $300,000 for married couples filing jointly, would be eligible for federal debt forgiveness. This is far less than promised during the election cycle and he is unlikely to be popular with his young voters, which is particularly vital with the midterm elections fast approaching.

With the flick of a pen, President Biden could forgive $50,000 in student loan debt and give millions and millions of student borrowers a new lease of life,” Senate Majority Leader Schumer, one of the biggest proponents of full forgiveness, said in October.

Until the full announcement is made, the amount of debt written off is not known, but it looks increasingly less like $50,000.

How much debt do students in the United States have?

The Average student debt per borrower is $39,351which means an average monthly payment of $393, according to recent statistics from EducationData.org. A total of 43.2 million people currently have a student loan and this number is only increasing every year. Around 2.6 million graduates owe more than $100,000 in student loan debt alone.