WASHINGTON — President Joe Biden is considering forgiving up to $10,000 in student loan debt per borrower using executive action, according to Bloomberg.com.
The move could provide an instant spark in spending for Americans who have been saddled with student debt for decades. But, there may be limits on how the program is rolled out.
According to the Washington Post, the White House will consider "income caps for eligibility for student loan relief that would exclude higher-earning Americans," also called means-testing.
The Post reported the threshold for an individual would be set at either $125,000 or $150,000 from the previous year's taxes. For couples, the Post reported, the threshold would be set at $250,000 to $300,000 if they filed their taxes jointly.
Activists had called for upwards of $50,000 in student loan debt forgiveness, but President Biden balked at that high of a number.
Biden said he'll decide what to do "in the next couple of weeks.”
The stakes for Biden and Democratic leaders will be high as some economists have said the move will exacerbate inflation. However, it could give Democrats a boost among younger voters as they look to hold onto power in Washington during the mid-term elections later this year.
