Biden rejects $50,000 in student loan debt forgiveness

President Joe Biden took swift action to push back reports that he was about to use executive action to pardon $50,000 from federal student loan debt per borrower.

“I’m looking at facing debt reduction,” he said Thursday at the White House, per CBS News. “I’m not looking at a $50,000 debt reduction. But I am in the process of looking closely at whether or not there will be additional debt forgiveness.

Biden went on to say that he “will have an answer on this within the next two weeks.”

Just a day before, by fox businessSenate Majority Leader Chuck Schumer (D-NY) claimed the president was getting closer to erasing up to $50,000 in student loan debt.

“I will continue to urge the president to take this important step. And I say to my colleagues, I think the president is going our way,” Schumer told the Senate. “My talks with him and his team have been very fruitful lately and I hope he does the right thing. We are getting closer.

Such a move by the President would directly affect more than 43 million borrowers who hold $1.75 trillion of federal student loan debt, according to the Department of Education. In addition, it is estimated that around a quarter of student borrowers, or 10 million people, are in default.

Schumer’s statements come as Biden, during a Meet with members of the Congressional Hispanic Caucus (CHC) earlier this week, seemed to want to eventually cancel some student debt, whether they attend a public or private institution.

Rep. Tony Cardenas (D-CA), who attended the meeting, noted that the president never mentioned a specific amount he was looking to write off. When the lawmaker reiterated that the CHC supported the cancellation of $10,000 in student loan debt, Biden said, “You’re going to like what I’m doing.”

In response to Biden’s meeting, Sen. Mitt Romney (R-UT) tweeted “Desperate polls call for desperate measures” – and even suggested the president was trying to “bribe” voters, an odd claim given that Biden campaigned on this policy during his presidential run.

A group of Republican senators also introduced the Imprudent Student Loan Prevention Act— legislation that would end the Biden administration’s pause on student loan repayments and bar it from blanket cancellation of any student loan debt in the future.

“As Americans continue to return to the workforce more than two years into the pandemic, it’s time for borrowers to resume student debt repayment,” said Sen. John Thune (R-SD) in a press release. statement. “Taxpayers and working families should not be responsible for continuing to bear the costs associated with this suspension of reimbursement. This common-sense legislation would protect taxpayers and prevent President Biden from suspending federal student loan repayments in perpetuity.

Ethen Kim Lieser is a Washington State-based finance and technology editor who has held positions at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow him or contact him on LinkedIn.

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