Connect with us

Hi, what are you looking for?

Politics

White House eyes income cap on student loan forgiveness, has not studied how it may impact inflation

President Biden is considering whether to use income to determine eligibility as part of any student loan forgiveness program, the White House said Monday.

The president last week floated the possibility of eliminating $10,000 in debt per student borrower, likely through executive action.

During Monday’s White House press briefing, press secretary Jen Psaki was asked whether an income cap for any potential student relief program was under consideration.

ERASING STUDENT LOAN DEBT COULD DISPROPORTIONATELY BENEFIT WEALTHY AMERICANS

“There is,” Psaki said.

It is unclear, at this point, what the maximum income would be for student loan forgiveness, should an income cap be included in any possible plans. Officials have reportedly floated the possibility of limiting the relief to people who earned less than $125,000 or $150,000 as individual filers the previous year. That would amount to a threshold of roughly $250,000 to $300,000 for couples who file their taxes jointly. 

Psaki noted that income caps would be to ensure that student loan relief is “targeted at people who need help the most.”

Psaki was also pressed on whether the White House has analyzed how potential student loan forgiveness could impact inflation.

President Joe Biden boards Air Force One at Brussels Airport in Brussels, Tuesday, June 15, 2021. Biden is en route to Geneva. (AP Photo/Patrick Semansky)

“I know there’s been outside analysis of that, but I don’t have any internal analysis at this point to preview for you,” she said.

Last week, the president said he is “considering dealing with some debt reduction.”

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

BIDEN EXTENDS STUDENT LOAN REPAYMENT PAUSE UNTIL AUG. 31, SAYING US ‘STILL RECOVERING’ FROM COVID-19

Biden supported erasing $10,000 in student debt for most borrowers during his presidential campaign, but has raised questions about his legal authority to do so via executive order. Last year, the president requested a memo from the Education Department to determine whether he had the power to unilaterally cancel student loan debt.

Meanwhile, the president extended the freeze on student loan payments through Aug. 31, citing the continued economic hardships brought on by the COVID-19 pandemic. Former President Donald Trump first issued a freeze on repayments in 2020.

Fox News’ Megan Henney contributed to this report. 

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

Europe

BELFAST – Britain is pressing ahead with plans to grant legal immunity to former soldiers and others involved in Northern Ireland killings – but...

Politics

“I am a Black, gay, immigrant woman. The first of all three of those to hold this position,” Jean-Pierre told reporters on Monday. She...

Politics

Pennsylvania Senate candidate Kathy Barnette’s campaign said she was at the Jan. 6, 2021 protest in Washington, D.C., to “demand election accountability,” but didn’t...

Europe

BELFAST – Britain will introduce “a legislative solution” to post-Brexit trade tensions in Northern Ireland, Prime Minister Boris Johnson confirmed Monday during a visit...

Politics

Greenberg, a former county tax commissioner and close friend of Gaetz’s, pleaded guilty to six charges in May of last year, admitting that he...

United States

The Food and Drug Administration is expected as early as Tuesday to authorize a booster shot of the Pfizer-BioNTech vaccine for children 5 to...

Politics

MIDDLETOWN, PA – With the hours winding down until Tuesday’s primary in Pennsylvania, Republican candidate Dave McCormick was making a final pitch to voters....

Europe

Local officials in the French city of Grenoble cleared the way for women to wear ‘burkinis’ in state-run swimming pools Monday, firing up a...