August 24, 2022: -The Biden administration has been hinting at an announcement on broad student loan cancellation for weeks, and with less than two weeks to go before a moratorium on repaying a student loan, interest and collections will expire, U.S. Education Secretary Miguel Cardona said that Americans could anticipate a decision from the administration in the coming week.
“We know August 31 is a date many people are waiting to hear something from,” Cardona said. “We’ve been talking every day about this, and I can tell you that the American people will come across in the coming week or so from the President and the Department of Education on what we will do around that.”
The White House officials are zeroing in on canceling $10,000 in student debt for all borrowers who make less than $125,000 or $150,000 each year, but the administration has yet to confirm such plans.
The department’s repayment freeze, enacted in March 2020, has been extended four times and is set to end on August 31.
Cardona echoed White House press secretary Karine Jean-Pierre’s statements earlier this month when she told reporters that Biden’s talks on broader federal student loan forgiveness would come before August.
“We’re just going to keep assessing our options for cancellations, and so no decisions have been made on that,” she added. “And the president has made clear he’ll have something before August 31.”
The Biden administration has canceled more student loan debt than any other, including $13 billion for defrauded borrowers.
Over 40 million Americans are saddled with student loan debt. Suppose the Biden administration chooses to discard $10,000 in loans for each borrower without restrictions on who accepts such relief. In that case, it will let go of the entire balance for almost 11.8 million borrowers and wipe out almost $321 billion of federal student loans, the Federal Reserve said.
Nearly 50% of Americans support the $10,000-per-borrower proposal, according to a recent survey of 1,500 Americans from An Economist/YouGov.