Once again, President Biden is planning to cancel the student loan debt for borrowers who earn below $125,000. That he was preparing to make the announcement, like many of his other promises on the debt, was renewed last week. It gained traction after he signed the Inflation Reduction Act, and so a general optimism ensued. But the borrowers still wait, ever hopeful.
Now it is rumored he will make that move once he’s back from vacation, according to several media outlets. Bloomberg and Reuters reported that he would make an announcement on Wednesday, but neither provided details.
“We’ve been talking daily about this,” Biden said on NBC’s “Meet the Press” and with no sense of irony in his voice, “and I can tell you the American people will hear within the next week or so.” Naturally, the debtors are concerned about those last two words.
Over the last few months or since he took office, dealing with the student loan debt has been repeated again and again by the president, and the White House has noted that no one with a federal loan has paid anything since he took office, and the administration has already cancelled more than $30 billion in debt for nearly 2 million Americans.
Since the onset of COVID-19 pandemic the loan payment has been put on hold, in fact initiated by Trump. And Biden has continued to extend the moratorium, though he has been pressured by Democrats to completely end the debt.
One factor weighing on loan debt forgiveness is that the majority of Americans, according to a recent poll, believes such a measure would increase inflation. Of course, those who voiced this concern are mostly Republicans.
In any case, a sizable number of Americans are not sure what to make of it, unless they are among those caught in the throes of this economic impasse, and waiting for Biden to keep his word.