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On Friday, The Washington Post reported the Biden administration is planning to cancel $10,000 in student debt per borrower, citing three people with knowledge of the matter.
The White House plan would apply to Americans earning less than $150,000 in the previous year, or less than $300,000 for married couples filing jointly, two of the people told the Post.
The current government pause in student interest and payments due to COVID-19 expires at the end of August and it has not yet been made clear if the administration planned to resume payment requirement then.
The sources, who were not identified, told WaPo that details could change as the Biden administration has been reluctant to unilaterally make an unprecedented cancellation of college debt owned by the U.S. government.
Student debt continues to widen the racial wealth gap further.
Cancelling only ten grand worth of student debt will leave millions of students who borrowed money in largely the same predicament they are in now as the national student loan debt topples $1 trillion.
This particularly impacts Black borrowers who are more likely to have defaulted on their loans due to hiring discrimination, a low-waged workforce, limited opportunities, and other factors.
$10,000 only scratches the surface for most student debt in America.
In the latest “something is better than nothing” news from Biden White House, this measure will fall short like many of Biden’s campaign promises.
While Biden may have publicly campaigned on cancelling $10,000 of student debt, his private promise that “nothing will fundamentally change” rings truer by the day.
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