- Joe Biden campaigned on canceling up to $10,000 of debt per student
- But the President appears to have dropped it from his agenda and it’s reportedly been scrapped from next week’s Budget
- ‘The idea that you go to Penn and you’re paying a total of 70,000 bucks a year and the public should pay for that? I don’t agree,’ Biden said in an interview
- The move is likely to anger the leftwing of the Democrat Party, after AOC and Elizabeth Warren repeatedly pressured Biden to forgive $50,000
- The White House has said it would prefer Congress pass a bill canceling the debt rather than doing so through executive order
- More than 42 million Americans, or one in six adults, have student loans, and owe an average of $36,520
Joe Biden will not include student loan forgiveness in his upcoming Budget, after pledging to cancel $10,000 from loans on the campaign trail.
Biden is due to announce his latest budget at the end of next week, and claims he has grown suspicious of wiping out the loans.
The shift in policy is a major blow for the more than 42 million Americans who have student loans.
Biden had been pressured by progressives in the Democrat Party including Elizabeth Warren and Alexandria Ocasio-Cortez to forgive up to $50,000 in debt. Chuck Schumer, the Senate Majority Leader, was also in favor.
In an interview with the New York Times Friday, Biden said he had grown ‘suspicious’ of canceling the debt.
‘The idea that you go to Penn and you’re paying a total of 70,000 bucks a year and the public should pay for that? I don’t agree,’ Biden told the Times.
The White House has previously saidBiden wanted to see Congress pass legislation to wipe away student debt, rather than through executive order.
The announcement marks a shift from the White House’s previous position last month when Biden’s chief of staff Ronald Klain said the president was considering canceling up to $50,000 in debt.
Klain told a Politico Playbook event that Biden has asked Education Secretary Miguel Cardona to figure out if the president has the legal authority to wipe out their balances.
In March, White House press secretary Jen Psaki said they were still ‘exploring options’ around student loan policy.
‘The President continues to call on Congress to cancel $10,000 in debt for student loan borrowers,’ she said.
‘That’s something Congress could take an action on, and he’d be happy to sign.’
Warren had previously called on Biden to wipe away the debt using executive order.
‘Biden-Harris can cancel billions of dollars in student loan debt, giving tens of millions of Americans an immediate financial boost and helping to close the racial wealth gap,’ Warren Tweeted in November, days after the election was called in Biden’s favor.
”This is the single most effective executive action available for a massive economic stimulus.’
In February, AOC attacked Biden for refusing to write off the full $50,000 figure she and Warren had been seeking.
That month, Biden told a CNN town hall attendee, ‘I will not make that happen,’ when she said $50,000 should be the number and not his proposed $10,000.
The president argued that it would be hard to tell a community he was going to write-off debt from Harvard or Yale instead of investing in childhood education.
AOC complained, saying: ‘Entire generations of working class kids were encouraged to go into more debt under the guise of elitism. This is wrong.’
According to Government statistics released in January, 42.3 million people, or one in six adults, in America have a student debt.
The average outstanding loan amount is $36,520.