Home » Biden would wipe some student debt from borrowers making under $125K

Biden would wipe some student debt from borrowers making under $125K

by Press room

Psaki says Biden is now considering wiping student debt for Americans less than $125,000 in another climb down from cancelling $50,000 for all last week

  • Press secretary Jen Psaki floated that if President Joe Biden wipes away some student loans debt, he’d only do so for those making under $125,000 a year 
  • Psaki said $125,000 was the number he referenced on the campaign ‘so that is the frame through which he’s considering,’ she said on Air Force One Tuesday
  • The president said last week he’d use executive action to relieve some student debt from Americans 
  • Biden has previously floated a figure of $10,000 per borrower
  • That’s significantly lower than the $50,000-per-borrower Senate Majority Leader Chuck Schumer has called for 
  • The administration pushed the student loan repayment moratorium until August 31, with Psaki saying that Biden would act on student loan debt before it lifts  

White House press secretary Jen Psaki floated Tuesday that if President Joe Biden wipes away portions of Americans’ student loans, he’d only do so for those making under $125,000 a year. 

‘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,’ Psaki said on board Air Force One as the president traveled to Alabama to tour a Lockheed Martin plant. 

The president said last week he’d use executive action to relieve some student debt from Americans. 

President Joe Biden

White House press secretary Jen Psaki (left) floated Tuesday that if President Joe Biden (right)  wipes away portions of Americans’ student loans, he’d only do so for those making under $125,000 a year.

‘I’m not considering $50,000 in debt reduction,’ Biden said Thursday. ‘But I am in the process of taking a hard look at whether or not there will be additional debt forgiveness.’ 

Biden has previously floated a figure of $10,000 per borrower, significantly lower than the $50,000-per-borrower Senate Majority Leader Chuck Schumer and some progressive leaders, including Sen. Elizabeth Warren, have called for. 

Biden said he would make a decision in the ‘next couple of weeks.’  

A day before, Schumer said publicly he thought Biden might go for the $50,000 number. 

‘We’re getting closer and 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,’ Schumer said then. 

Americans with federal student loan debt haven’t had to pay back loans since the Trump administration due to COVID-19. 

The Biden White House recently extended the repayment moratorium until August 31. 

Psaki has said Biden plans to act in some way before the moratorium lifts. 

Even moderate Utah Republican Senator Mitt Romney, who's voted for Biden's agenda before, dismissed the move as 'desperate'

Even moderate Utah Republican Senator Mitt Romney, who’s voted for Biden’s agenda before, dismissed the move as ‘desperate’

The House Republican Leader rolled out a list of 'winners' and 'losers' in a scenario where President Biden cancels some or all of the $1.6 trillion in federal student loan debt

The House Republican Leader rolled out a list of ‘winners’ and ‘losers’ in a scenario where President Biden cancels some or all of the $1.6 trillion in federal student loan debt

While loan relief might be popular with federal student loan borrowers – many of whom have government loans with high interest rates – Republicans of all stripes are trying to sully the move with voters. 

The more moderate GOP Sen. Mitt Romney tweeted last week: ‘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?’ 

House Minority Leader Kevin McCarthy wrote in a tweet Wednesday that ‘debt cannot be “forgiven.”‘

‘It can only be transferred. Someone always has to pay,’ the California Republican said. 

Additionally, Ohio Senate hopeful J.D. Vance, who recently received the endorsement of former President Donald Trump, also attacked 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,’ Vance tweeted. ‘No bailouts for a corrupt system.’ 

‘Republicans must fight this with every ounce of our energy and power,’ Vance added. 

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