The Biden administration is taking steps to follow through on a campaign promise to forgive huge student loan debt, sources tell The Hill. The administration is seeking executive action to forgive $10,000 per borrower, with sources saying even bigger options are on the table.
President Joe Biden’s decision to write off $10,000 per borrower would wipe out the loans of 15 million out of 46 million borrowers, Bloomberg reported. Such action would erase $321 billion in federal student loans and completely eliminate student debt for nearly 12 million people, CNBC noted.
The White House has not set an official timeline for executive action, but some lawmakers fear the move could worsen already-high inflation ahead of November’s midterm elections. (RELATED: Biden Admin Announces Massive Expansion of Student Loan Forgiveness)
“I would see that as a good first step. Whatever he [Biden] feels comfortable doing, very good. And I’ll do whatever I feel comfortable doing,” Majority Whip James Clyburn said The Hill. Clyburn has allied himself with the Biden administration despite admitting that $10,000 isn’t enough, according to The Hill’s report. He continues to work with Senator Elizabeth Warren and others to forgive more than $50,000 in student debt per borrower.
Biden said Thursday he wasn’t considering a $50,000 per-borrower rebate, but he recently issued another pandemic pause extension on federal student loan repayments. The White House has said that if Congress passes a bill canceling student debt, the president would sign it.
This week, Senate Minority Whip John Thune introduced a bill aimed at preventing the Biden administration from canceling debt. “After a huge increase in our national debt thanks to the pandemic and reckless spending by Democrats, the government does not need to forego billions of dollars in providing student loan relief to Americans with the highest earning potential. high,” Thune wrote in a statement. .