It looks like President Biden wants to make good on his promise to eliminate federal student loan debt entirely by moving to forgive most of the country’s $1.6 trillion deficit.
This week it was announced that Biden was exploring options to forgive almost the entire debt carried by former and current U.S. students. He addressed the possible decision during a Monday meeting with the Congressional Hispanic Caucus. The revelation comes just a week after the administration unveiled a plan to refine the student loan forgiveness and income-based repayment programs.
If Biden puts his plan into motion, over 43 million citizens will have their student loan debt canceled for good. Press secretary Jen Psaki says that the administration will make a decision about complete student loan forgiveness between now and August, which is when payments are scheduled to resume. Federal student loan payments have been halted due to the COVID-19 pandemic.
Canceling student loan debt will not only relieve millions of people from crippling financial woes, but it could also help Biden secure re-election. Some Democrats believe the move will motivate young voters and other progressives to vote in his favor. However, the plan could have the opposite effect, angering voters who have already paid off their student loans.
Student loan debt is the second-largest debt owned by Americans, behind mortgages, as of this year.