White House Says Student Debt Cancellation “Still On The Table”

(PatriotWise.com)- The White House took some dramatic steps to help federal student loan borrowers, just a few days after White House Press Secretary Jen Psaki said that canceling some federal student loan debt was “still on the table.”
On Tuesday, the U.S. Department of Education effectively canceled the student loan debt for roughly 40,000 people in the country. In addition, they offered credits that could help an additional 3.6 million people repay their loans.
The plan is aimed at helping borrowers who fit into a low-income category or who are public servants.
In a statement, Miguel Cardona, the education secretary, said:
“Student loans were never meant to be a life sentence, but it’s certainly felt that way for borrowers locked out of debt relief they’re eligible for.”
Immediately, 40,000 or more borrowers will receive debt cancellation under what’s known as the Public Service Loan Forgiveness Program, or PSLF. The White House said in doing so, it was addressing what it called “historical failures” to properly communicate all the benefits that borrowers have been eligible for under various federal programs for student loans.
A few thousand additional borrowers who have older loans will receive forgiveness through IDR forgiveness, or income-driven repayment. Finally, roughly 3.6 million other borrowers will get three additional years of credit toward that IDR forgiveness, the Education Department said.
The programs here put a cap on how much borrowers in lower income brackets have to pay on their student loans, forgiving the rest of the balance in full after a certain timeframe.
While this is another move that the Biden administration is making to forgive federal student loan debt, it still falls short of what the progressive wing of the Democratic Party has called for. Progressives such as Representative Alexandria Ocasio-Cortez want President Joe Biden to cancel all federal student loan debt, something that he hasn’t said he supports just yet.
During his campaign for president in 2020, Biden did commit to canceling at least $10,000 in debt for each federal student loan borrower. That would total $400 billion.
In just his first year in the White House, the president canceled $17 billion in total debt for roughly 725,000 people.
Last Friday, Psaki said that canceling federal student loan debt outright for every borrower is “still on the table.”
For now, borrowers don’t have to repay any of their loans until August 31. As that date approaches, it’s possible that the Biden administration could extend the grace period again, or they could take further action to officially cancel the debt outright.
In speaking on Friday, Psaki said:
“Nobody’s had to pay a dollar, a cent, anything in student loans since Joe Biden has been president. And if that can help people ease the burden of costs in other parts of their lives, that’s an important thing to consider. That’s a big part of the consideration.”
Of course, what Psaki didn’t mention is that this plan wasn’t Biden’s idea. It was started under his predecessor, Donald Trump, at the outset of the COVID-19 pandemic in 2020.