(The Hill) – President Biden is considering limiting student loan forgiveness to those earning less than a certain income, three sources familiar with the topic told The Washington Post.
Officials are trying to limit cancellations to those making less than $125,000 or $150,000 as an individual or $250,000 or $300,000 for couples filing taxes together.
“There are various suggestions in the administration as to how this could be structured,” one person told the Post. “Over the past week in particular, administration and congressional staff have focused the debt relief conversation on how best to fulfill the President’s desire to ensure that the most economically vulnerable people with student debt benefit from any measures. “
One of Republicans’ arguments against easing student loans is that they benefit higher-income Americans who are able to pay off their debts.
The sources told the outlet that talks are still in the early stages and many changes could come before an official plan is announced.
Earlier this week, Biden denied that debt relief would be as much as $50,000 per borrower, but said he will have more to say on the matter in the coming weeks.
“I’m considering looking into deleveraging,” Biden said. “I’m not considering $50,000 in debt relief, but I’m looking closely at whether or not there will be additional debt relief and will have an answer on that in the next few weeks.”
Since his 2020 presidential campaign, Biden has promised to cancel at least $10,000 in student debt per borrower, but other Democrats and activists are pushing for more before the midterms.
Biden has halted the problem by further extending the freeze on student loan payments that began during the pandemic due to job losses.
Biden has twice extended the resumption of payments, with borrowers scheduled to start making payments again in early September.