The Biden administration has promised to make a decision on a student loan forgiveness plan by the end of August, when monthly loan payments are scheduled to resume after being paused for over two years.
The plan up for consideration is $10,000 in student debt forgiveness for borrowers who make less than $125,000. An extension of the payment pause, which has been a part of a pandemic-era relief policy, is also on the table.
The United States’ outstanding student loan debt balance exceeds $1.7 trillion, with 40 million Americans in debt. Before the COVID pandemic, when the economy was in one of its healthiest periods, about 10 million borrowers were still behind on their payments.
Experts have warned that resuming the payments without preparing borrowers more could cause delinquency rates to spice.
It still reminds uncertain how the administration will proceed, if at all, with loan cancellation, though President Joe Biden has put his support behind $10,000 in student loan forgiveness since the campaign trail.
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