White House officials are planning to pay off $10,000 in debt loan per borrower after months of internally analyzing how to structure loan forgiveness for tens of millions of Americans, reported The Washington Post.
According to the same media outlet, three people With knowledge on the subject, the president of the United States, Joe Biden, expected to make the announcement this Saturday during the graduation of the University of Delaware, however, the plan could change as a result of the massacre that took place on Tuesday in a elementary school in Uvalde, Texas, which left 21 dead people, 19 students and two teachers.
Two of the three informants (whose names are unknown) indicated that the Biden administration’s plans called for limiting debt forgiveness to Americans who earned less than $150,000 in 2021 or less than $300,000 for married couples filing jointly , however, it is not clear if the administration will simultaneously require the interest and if the payments will resume at the end of August.
Despite the leak of information by three people who know closely the issue, the White House has limited itself to pointing out that they have not yet made a final decision and Joe Biden promised last 28 April to clarify the issue of student debt in the next few weeks.
The deputy press secretary of the White House, Vedant Patel, has indicated that since Joe Biden took office as president of the nation, January 2021, no one has been required to repay a single penny of the loans.
Action that a group of experts on the subject claims has cost the federal government $100 billion and its maintenance would cost around $50 billion per r year.
For their part, Democratic Senator Elizabeth Warren, Independent Senator Bernie Sanders and Senate Majority Leader Charles Schumer (D. of New York), pressure Biden on the issue, insisting that such action would provide immediate relief to minorities and low- and middle-income families.