U.S. President Joe Biden confirmed on Thursday that his administration is looking into forgiving some of the federal student debt in the near future. Biden said he is “taking a hard look” into this possibility but added that more information on the matter would be known in the coming weeks. The figure
Some representatives of the Democratic Party have pushed for a $50,000 debt write-off per borrower in the past, but Biden said that he wouldn’t go that far.
“I am not considering $50,000 debt reduction,” Biden stated. “But I’m in the process of taking a hard look at whether or not there will be additional debt forgiveness.”
Bloomberg later reported that the figure Biden is considering is at “least $10,000” per borrower. The debt forgiveness would come through executive action. This is in line with what Biden promised during his presidential campaign, although the process of fulfilling this promise has taken a lot longer than expected.
Positive actions concerning student debt forgiveness would probably resonate with the voters ahead of November midterms and provide some badly-needed boost for Democrats. However, there are also concerns about the move with some believing it could worsen the already raging inflation.
