Biden is reportedly planning to cancel some student loan debt. Both Democrats and Republicans have criticized the plan.

President Joe Biden is reportedly about to announce a plan to forgive a certain amount of student loan debt. The details of the plan drew criticism from both Republicans and Democrats.

What is Biden planning?

The White House is finalizing a plan to forgive $10,000 in student loan debt per borrower, according to The Washington Post reported on Friday.

Americans earning $150,000 or less per year would be eligible for the full amount of forgiveness, while married couples earning $300,000 would be eligible for forgiveness of up to $20,000 if each spouse earned at least Owes $10,000 in student loan debt.

The White House has been deliberating the plan for months and should announce it as early as this weekend. But according to the Post, the White House delayed those plans because of the recent mass murder in Texas.

It is important that the plan is not fixed and can still change. “No decisions have been made yet – but as a reminder, nobody has had to pay a penny on student loans since the president took office.” said Vedant Patel, White House spokesman.

Biden would enact the plan by executive order. Student loan debt relief would not pass Congress because only a minority of lawmakers (although that number is growing) support student loan debt relief. However, should Biden take executive action, it would be immediately challenged in court, potentially leaving borrowers in limbo for several years.

Current outstanding student loan liabilities are $1.6 trillion. Biden’s plan would wipe out total credit for about a third of borrowers.

What does the plan have to cost?

While the exact details of the plan remain unknown, estimates by the Committee on Federal Budget Governance, a nonpartisan think tank, recommend Canceling $10,000 in student loan debt per borrower would cost taxpayers at least $230 billion.

The CRFB believes that such a plan would primarily benefit wealthier Americans (“those in the upper half of the income spectrum”), exacerbate inflation, and ultimately leave the big tuition problem unsolved.

How was the reaction?

Democrats were dismayed that Biden was planning a cancellation only $10,000 in debt while Republicans expressed outrage that debt would be canceled at all.

Derrick Johnson, President of the NAACP, said that “giving $10,000 in student loans is like throwing a bucket of ice water on a forest fire.”

“Ten thousand dollars cancellation would be a slap in the face,” Johnson said added in a statement that was retweeted by Rep. Alexandria Ocasio-Cortez. “President Biden, it’s not about whether you can do it; it’s about whether you have the will or not.”

Journalist Marissa Higgins I Agree“I am so frustrated and disappointed by the apparent White House decision on student loans. 10,000 if you earn less than 150,000. That’s it. After ALL this organizing and appeals from fringe groups. That’s not going to get people to vote, or more importantly, help them.”

Democratic politician Nina Turner even claimed“The cancellation of just $10,000 in student loans is grossly unfair.”

On the other hand, Sen. Tom Cotton (R-Ark.) described Biden’s plan as a “student loan transfer.”

“Why would a waitress who didn’t go to college pay the student loan debt of a $300,000 attorney? That’s what will happen under Biden’s student loan transfer plan,” Cotton said. “There is no such thing as ‘forgiveness’ for student loans. It just transfers the debt from those who took out the loans (and benefited from them) to those who didn’t go to college or responsibly repay their debts.” Biden is reportedly planning to cancel some student loan debt. Both Democrats and Republicans have criticized the plan.

Laura Coffey

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