According to the Washington Post, it looks like the Biden Administration is finally settling on a plan to try to please the radicals and cancel some student loan debt.
White House officials are currently planning to cancel $10,000 in student debt per borrower, after months of internal deliberations over how to structure loan forgiveness for tens of millions of Americans, three people with knowledge of the matter said.
President Biden had hoped to make the announcement as soon as this weekend at the University of Delaware commencement, the people said, but that timing has changed after the massacre Tuesday in Texas.
The anonymous sources are said to be senior Biden officials and they have knowledge of the deliberations Biden has been in for months to try to figure out a way to cancel some student debt in a politically expedient manner.
The White House's latest plans called for limiting debt forgiveness to Americans who earned less than $150,000 in the previous year, or less than $300,000 for married couples filing jointly, two of the people said. It was unclear whether the administration will simultaneously require interest and payments to resume at the end of August, when the current pause is scheduled to lapse.
The people, who spoke on the condition of anonymity because they were not authorized to discuss the deliberations, cautioned that some details of these plans could change before the White House makes the decision official.
This plan would limit the cancelation to people who aren't the highest earners, assuming they can more afford the debt.
But if you're 200 grand in debt for a gender studies degree and you're working at a Starbucks you can look forward to your hardworking neighbors with no debt paying off a percentage of your bad decision.
Wiping out $10,000 of debt per borrower could cost roughly $230 billion, according to estimates by the Committee for a Responsible Federal Budget, a nonpartisan think tank. However, restarting payments for borrowers, which have been on hold since March 2020, would bring additional money into federal coffers. The think tank said in March that pausing payments had cost the federal government $100 billion and would run around $50 billion per year to maintain. The Washington Post had previously reported that the administration was considering making only undergraduate debt eligible for forgiveness.
Biden has been all over the place, and there have been many rumors as to what his plan would be.
Safe to say, if this report is accurate, Biden has chosen the route that least pleases his followers while costing the government more money and ticking off the working class.
Quite the tactician!
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