The White House attempts to make Student Loan Forgiveness a little more Attractive by adding Income Caps
The White House is weighing the possibility of using income caps to exclude high earners from the eligibility criteria for relief...
Student loan cancelation or even help has been one of the most recent pressures faced by the Biden administration. In reality, they did it to themselves by making it such a staple during Biden’s presidential campaign. In terms of updates, the White House is weighing the possibility of using income caps to exclude high earners from the eligibility criteria for relief according to The Post.
According to various news sources, officials now have their thinking caps on to find a way to write off student loans as Biden indicates that he is considering waiving the debt. Some officials are looking to cap the relief amount based on people’s earnings. Those earning less than $125,000-$150,000 or $250,000-$300,000 for couples that file joint taxes will be used as the mark to determine how much funding the lesser earners get and if those making the previously mentioned amount get any relief. No financial decisions have been made just yet.
"There are different proposals floating around the administration about how to structure this. The congressional staff has centered discussion on how to best meet the president's desire to ensure the most economically vulnerable people with student debt benefit from any action."
The Washington Post was told by one source.
There are discussions that the amount could be at least $10,000 for eligible individuals. Sources added that the White House is also weighing the possibility of excluding relief for loans that were taken out for professional degrees like medicine and law. This would limit the aid to undergraduate loans only.
Biden hasn’t done what he has promised he would but now the pressure is on for the White House to help aid in the piled $1.7 Trillion in student loan debts. Biden said this week would be the starting point of his decision and that the final plan could come in the coming weeks. He made it blatantly clear however that $50,000 in forgiveness is off the table.
The one-step the White House has taken to help ease the struggle of student loan debt is the pause on repayment. However, this expires on August 31st and honestly, it seems we all just want one small glimpse of progress from the Biden administration. There is a fine understanding as well that over the past weeks the GOP has been ramping up criticism of the prospect of broad student-loan forgiveness, citing its cost to taxpayers and the economy.
Mitt Romney went as far as to consider the efforts a “bribe,” but the addition of thresholds may show a more favorable tale to the Republicans who are knocking down advancements.
"I had a lot of concerns that there does not seem to be any kind of income cap that he is proposing. I believe that we ought to increase Pell Grants which go to our neediest families and that is a far better way to target relief.”
Senator Susan Collins told Insider with the added claim that borrowers will just have to wait and see in the summer.