When the Biden administration extended the payment freeze on federal student loan payments until August 31st, many were hoping that this would give the White House more time to think of a forgiveness option. President Biden previously signaled that he would be open to forgiving $10,000 of student debt per person. Any more than that would have to be an act of Congress due to legal questions around executive actions.
In a 90-minute meeting with the Congressional Hispanic Caucus, the President stated he is looking at different options to “forgive an unspecified but substantial amount of federal student loan debt,” according to CBS News. It’s a move that will help 43 million borrowers who hold more than $1.6 trillion in federal student loan debt and give Democrats a much-needed win with young voters headed into midterms.
Rep. Tony Cardenas stated President Biden is open to forgiving debt for college students regardless of whether they attended a public or private institution.
“The president never mentioned an amount nor did the president say that he was going to wipe out all student debt,” Cardenas said. “He did a dialogue with us about the differential between young people who went to public schools or private schools and we CHC members said he should focus on both. And he said, ‘Okay, good to know.’”
When Cardenas stated Hispanic Caucus supports executive action that would forgive at least $10,000 in college debt, the president “smiled and said, ‘You’re going to like what I do on that, I’m looking to do something on that, and I think you’re going to like what I do.’”
Press secretary Jen Psaki reiterated at a press briefing on Monday that the administration would decide on canceling some student loan debt between now and the end of August, or the pause would be extended further.