White House Denies Report Of $10,000 Of Student Loan Forgiveness: ‘No Decisions Have Been Made Yet’

The White House refuted a Washington Post report that claimed: Biden will eliminate $10,000 in college loans for each borrower; and Individual student loan debtors earning up to $150,000 per year or married couples filing jointly earning up to $300,000 will be eligible for loan forgiveness.

"No decisions have been made yet," Vedant Patel, a spokeswoman for the White House, told Reuters on Friday.

The Biden administration suggested the same income restriction to qualify for student loan forgiveness earlier this month. This possible income limit is $50,000 greater than the income limit on the Covid-19 stimulus cheques, which was set at $75,000 for individuals.

Tomorrow, Biden will deliver the commencement address at his alma school, the University of Delaware. While the White House has stated that Biden has not made a decision on broad-scale student loan forgiveness, the president could use tomorrow's graduation to declare his views on student loan relief.

Whether or not Biden reveals a comprehensive proposal or provides an updated timeline for a decision, the president may mention the next steps for student loan holders.

On April 28, Biden stated that he would determine whether to cancel student loans on a large scale within the next few weeks. That was, however, over four weeks ago. If Bidens offers an update on student loan forgiveness, it will be the second major education policy announcement in less than a week.

Since Biden became president, student loan debtors have not been obliged to pay a single dollar of their federal student debts, according to the Biden administration.

Biden has now cancelled $18.5 billion in student loan debt for 750,000 people. The president has stated that he is not considering a plan to eliminate $50,000 in student loan debt, which has been championed by progressive Democrats in Congress.

If Biden eliminates $50,000 in student loan debt, it will result in the elimination of federal student loan debt for 36 million borrowers. However, Biden has remained focused on the $10,000 in student loan forgiveness since the 2020 presidential election.

Senators led by Sen. Elizabeth Warren (D-MA) are still urging Biden to adopt a $50,000 student debt reduction package. They have requested the president to delay a decision on broad-scale student loan forgiveness, which could explain why Biden does not announce a plan to cancel student loan debt at tomorrow's graduation.

The expiry of temporary student loan relief on August 31, 2022 is the next key deadline for student loan borrowers. Pay special attention to the conclusion of the student loan payment halt, regardless of Biden's announcement on student debt forgiveness. You should ideally have a game plan in place before student loan payments resume.