Biden Could Wipe Out Student Debt, but Only for Americans Making Less than This

White House Press Secretary Jen Psaki recently floated the idea that if President Joe Biden wipes out student loan debt, he will only do so for individuals making less than $125,000 per year.

According to Psaki, “Well, the president talked, back on the campaign, about taking steps or looking at steps to help people making less than $125,000 a year, so that is the frame through which he’s considering — making considerations at this point.”

The president said recently that he would use executive action to relieve some Americans of student loan debt. “I’m not considering $50,000 in debt reduction, but I am in the process of taking a hard look at whether or not there will be additional debt forgiveness.”

Previously, the president floated a figure of $10,000 per borrower, well short of the $50,000 per borrower Senate Majority Leader Chuck Schumer and other more progressive leaders, including Senator Elizabeth Warren, are demanding.

Biden has said he would decide in the ‘next couple of weeks.’ Schumer said Biden might go for a $50,000 debt reduction the previous day.

“We’re getting closer and closer on student loans. I’ve been working relentlessly on the president and his staff, and they seem more open to it now than ever before,” said Schumer.

The Biden Administration recently extended the student loan repayment moratorium until August 31. Psaki said the president plans to act before the moratorium is lifted.

Americans with student debt from federal loans haven’t had to pay back loans since the Trump Administration due to Covid-19.

GOP overwhelmingly against loan relief

Although loan relief may be popular with student loan borrowers, Republicans are primarily against the move.

GOP Senator Mitt Romney recently tweeted: “Desperate polls call for desperate measures: Dems consider forgiving trillions in student loans. Other bribe suggestions: Forgive auto loans? Forgive credit card debt? Forgive mortgages? And put a wealth tax on the super-rich to pay for it all. What could possibly go wrong?”

Ohio Senate candidate J.D. Vance, recently endorsed by former President Donald Trump, also attacked the proposed student loan debt relief.

“Forgiving student debt is a massive windfall to the rich, to the college-educated, and most of all to the corrupt university administrators of America,” tweeted Vance. “No bailouts for a corrupt system.”

Vance continued, “Republicans must fight this with every ounce of our energy and power.”

According to House Minority Leader Kevin McCarthy, “debt cannot be forgiven. It can only be transferred. Someone always has to pay.”