White House to announce student loan cancellation AFTER midterm elections

Socialist demand student loan cancellation AFTER the midterm elections

Joe Biden will cancel $10,000 in student loans before November and ALL the debt AFTER elections

The White House is expected to announce a plan to cancel a chunk of student loan debt on Wednesday, in addition to an extension of the existing payment pause, three sources with knowledge of the situation told JournoNews. student loans

These sources are pointing out that Joe Biden needs to cancel $31 billion to bring up his sagging poll numbers among young people, but Democratic politicians who are up for election are demanding that he delay the huge cash-giveaway until AFTER the midterm elections in November.  So how will Biden handle it?

He will grant $10,000 in loan forgiveness now and the remainder will come after the election.

Student loan forgiveness helps Biden re-energize his voter base

First, if Biden enacts wide-scale student loan forgiveness, he will re-energize his voter base. Rep. Alexandria Ocasio-Cortez (D-NY) warned Biden that failing to implement broad student loan cancellation will alienate Democratic voters in the midterm election. By canceling student loans before the November election, Biden can appease potential Democratic voters that demonstrate he understands the financial challenges of student loan repayment.

$10,000 student loan cancellation shows Biden is committed to student loan relief later…

Since becoming president, Biden has canceled more than $25 billion of student loans. For example, Biden recently canceled $6 billion of student loans for 200,000 student loan borrowers. While Biden has focused on targeted student loan relief, borrowers have questioned his commitment to broad student loan forgiveness. Biden campaigned on $10,000 of student loan cancellation for borrowers but said Congress should pass legislation. Since Congress hasn’t acted on broad student loan forgiveness, student loan borrowers have directed their frustration at the president. By delivering $10,000 of student loan cancellation, Biden could provide student loan relief that Congress didn’t and appease student loan borrowers who feel uncertain about their economic future.

Sources said President Biden’s intended measure will include at least $10,000 in loan forgiveness for borrowers who make less than $125,000 annually, as well as another payment freeze for roughly four months.

The $10,000 figure would be the largest forgiveness of federal student loans per individual to date.

The move comes just a week ahead of the White House’s self-imposed Aug. 31 deadline. The timing has left millions of Americans waiting for guidance from the Department of Education on whether student loan payments that have been deferred since the start of the pandemic would resume next month.

The potential announcement on Wednesday comes within the smallest window of time borrowers have had to determine when their payments would resume. The White House, under Biden and former President Trump, has extended the pause six times since March 2020, sometimes giving borrowers up to a month’s notice on whether their bills would be due.

NOTE: Trump’s order temporarily stopped the accrual of interest on federal student loans, effectively putting $1.6 trillion in debt owed by some 40 million Americans on hold.

But that’s not enough

Socialists in his party are forcing Biden must forgive all the debt.

Since Biden has taken office, his administration has greenlighted over $31 billion in student loan relief for hundreds of thousands of borrowers. But that relief has only extended to certain cases, including for those who have attended schools found to have misled students, borrowers with disabilities and those participating in the Public Service Loan Forgiveness program.

But the $10,000 in forgiveness for a much wider breadth of borrowers will likely not satisfy some Democrats or activists who have pushed the Biden administration to forgive much more in federal student loan debt.

In May, Senate Majority Leader Charles Schumer (D-N.Y.), Sen. Elizabeth Warren (D-Mass.) and Sen. Raphael Warnock (D-Ga.) met with Biden to push for forgiveness. Advocates and other Democrats, including Schumer, have pressed for forgiveness of $50,000 per borrower or to cancel debt entirely.

Biden planning mass student loan forgiveness program

Senior department officials are preparing the mechanics of how the agency would operate a mass loan forgiveness program.

President Joe Biden speaks about "The Inflation Reduction Act of 2022"inthe State Dining Room of the White House in Washington, Thursday, July 28, 2022. (AP Photo/Susan Walsh)

Top Education Department officials have developed detailed plans to carry out student loan forgiveness for millions of Americans as they wait on President Joe Biden to make a final decision, according to internal agency documents obtained by JournoNews.

The documents sketch out the mechanics of how the agency expects to manage and operate a possible mass debt cancellation program on a scale that would be unprecedented in the history of the federal student loan program — if the White House were to give it the green light.

Education Department officials, the documents show, are prepared to provide debt relief automatically, within several months, to several million borrowers for whom the agency already has income information. Most other borrowers, according to the documents, would apply through a form on StudentAid.gov by self-certifying they qualify for relief.

All types of federal student loans would be eligible for loan forgiveness

The department’s plan contemplates that all types of federal student loans would be eligible for loan forgiveness, including Grad and Parent PLUS loans as well as federal loans owned by private entities. And it also suggests that borrowers who ever received a Pell grant,financial assistance for low-income families,could receive an additional amount of loan forgiveness.

Biden is considering using executive action to provide $10,000 of debt relief per borrower, but White House deliberations over the issue have stretched on for months without resolution. After initially promising in April a decision on the issue within a “couple of weeks,” Biden has since said he plans to decide by the end of August when the moratorium on loan payments is set to expire.

The Education Department documents do not reflect any final decisions on how the White House may ultimately choose to structure a debt relief program, including the amount of relief for borrowers or any income limits,if they pursue any program at all. But the documents show some of the ideas the administration is taking seriously and circulating among senior leaders — and, importantly, how the agency would be prepared to execute them.