A final decision on whether the Biden administration will forgive some student loan debt likely won’t be made until July or August, administration officials said. The Wall Street Journal.

The president said at the end of April that he would make a decision in “the next few weeks”. Since then, the administration has made no official announcement on widespread debt relief. On Monday, James Kvaal, undersecretary for education, said at an event hosted by the Bipartisan Policy Center that the administration was still considering how much student debt to forgive would be eligible under the proposal. debt cancellation.

Kvaal also said he did not know if there would be another pause in debt repayments.

White House officials say Biden plans to write off about $10,000 in student debt per borrower for all borrowers earning less than $150,000 a year, a figure that many debt relief supporters believe , is far too weak to cope with the magnitude of the debt crisis.

The rejection of that news included a letter signed by more than 500 labor and civil rights organizations calling on Biden to immediately forgive student loan debt.

Mike Pierce, executive director of the Student Borrowers Protection Center, said he thinks the Biden administration may consider a bigger relief package because of the pushback.

“I hope it’s because the White House got a message from people in debt and their advocates after early drafts of the proposal were updated a few weeks ago,” Pierce said.

According to Log, there are skeptics in the administration about Biden’s ability to use executive power to alleviate student debt. Additionally, the Department of Education is concerned about the implementation of a new federal program and the administrative burden that would come with millions of Americans seeking debt forgiveness.

Under the federal student loan pause, borrowers have not had to repay their debt since March 2020, and many debt relief advocates fear that borrowers may adjust to the increase in debt. spending without another pause extension before Biden moves on debt. forgiveness.

“In just a few weeks, 45 million people find themselves in this place where they don’t know what their household finances will look like,” Pierce said. “Every extra financial leeway counts.”

Yet no matter how much debt the Biden administration chooses to cancel, implementation of the plan will not be immediate. According to Scott Buchanan, executive director of the Student Loan Servicing Alliance, “It won’t happen overnight, no matter when you announce it. It’s just a big process.

Buchanan said loan managers, who handle federal government loans, will need to take the time to understand the details of implementing debt relief before borrowers see the impacts of any decision. administration on student debt.

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