Biden Administration Seeks To Forgive $10,000 In Student Debt Per Borrower - Reports

US President Joe Biden's administration is planning to cancel around $10,000 in student debt per borrower, the Washington Post reported on Friday, citing three people with knowledge of the matter

WASHINGTON (UrduPoint News / Sputnik - 27th May, 2022) US President Joe Biden's administration is planning to cancel around $10,000 in student debt per borrower, the Washington Post reported on Friday, citing three people with knowledge of the matter.

Biden had planned to announce the measure this weekend at a graduation ceremony at the University of Delaware, the people said, but that timing has changed following the deadly school shooting in Texas, according to the sources.

The administration plans to limit debt forgiveness to those who earned less than $150,000 in the previous year, or less than $300,000 for married couples.

In April, the Biden administration issued a press release announcing that it is taking steps to correct "historic failures" that have hamstrung some 46 million student loan borrowers in debt, amounting to $1.75 trillion. Federal Student Aid estimates that the changes will result in immediate debt cancellation for at least 40,000 borrowers under the Public Service Loan Forgiveness program, the release said.

In March, the US administration was extended a moratorium on student loan repayment in an effort to help borrowers achieve greater financial security following the pandemic crisis.

The pause on student loan repayments will continue until August 31, 2022 to allow those in this category "to continue to get back on their feet after two of the hardest years this nation has ever faced," Biden said.

In the interim, Biden said, the hope is that borrowers are able to move toward becoming more financially stable. Biden said the Department of education is continuing to work to improve student loan programs and will offer more flexible terms and other forms of support for all borrowers.