Biden in dilema over Students loan forgiveness

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U.S president, Joe Biden has left millions of Americans guessing, while he is yet to decide on the lingering students loan forgiveness in the country.

According to sources, the president who promised to make an official announcement this week finds himself in a dilema.

The President is currently caught up in a situation where he has to make a choice between fulfilling a campaign promise of alleviating the large debt burdens of millions of young Americans and strong oppositions seemingly in the interest of the nations’ economy, Sources have said.

The students loan forgiveness bid proposed by President Joe Biden met strong oppositions from various quarters including fellow democrats and lawmakers which have led to series of discussions between parties projecting the interest of each group.

The forgiveness bid sought to cancel $10000 off students loan which borrowers are to resume payment as from September 1st.

While a group of agitators insist that cancelling $10000 from students’ debt would grossly affect the nations’ economy and trigger inflation, others have held high the bar that the presidents project would bring relief to many young Americans.

Meanwhile, sources who were aware of a private conversation between Senate Majority Leader Charles E. Schumer (D-N.Y.) and Sen. Elizabeth Warren (D-Mass.) alongside White House Chief of Staff Ron Klain, spoke on condition of anonymity while reiterating requests the strong proponents of loan cancellation have made over the past two years that significant amounts of debt be forgiven.

The NAACP has also been adamant that the administration cancel as much as $50,000 in student loans per borrower, citing the higher loan burdens of Black Americans – a proposal which Biden has outrigly Written off citing it’s impact on the economy as a downside.

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Recall that in 2020, the Biden Administration directed a pause in payment of loan by borrowers as a result of the downside of the pandemic on its people.

President Joe Biden had also postponed the date for commencement of payment twice, beginning from May this year – an action which according to Government Accountability Office as of April 30, had cost the federal government about $102 billion in interest payments borrowers didn’t have to make.

Biden had said that the pause extension would avail borrowers more time to get back to their feet after a total lockdown caused by the pandemic in 2020.

While the private debates continue to intensify and Biden yet to decide on the students loan forgiveness bid, the political impact of the decision is also fiercely debated — even among Democrats.

Galston, the former Clinton aide, predicted families who paid off their loans could sharply turn on Biden as Democrats appear to be rebounding in the polls.

“If they get it wrong, they’re going to get a big backlash on their hands,” Galston said.

Relatively, sources close to White House officials who spoke on condition of anonymity disclosed that Officials have studied for months whether canceling student loans could alienate voters who had already paid theirs off.

Polling results have however been mixed, a third source said while stating that the White House officials previously discussed limiting debt forgiveness to Americans who earned less than $150,000 in the previous year, or $300,000 for married couples filing jointly.

The source noted that those thresholds had not changed, but implementing those caps in practice could prove complicated.

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