Student loans announcement expected ‘within the next week or so’

An announcement on student loans is expected “within the next week or so” according to the U.S. Secretary of Education. August 31st is when the pause on student loan payments is set to expire.
However, President Biden could be weighing other options before interest starts to accrue again. He could extend the moratorium for a fifth time or forgive student loans.

Some democratic lawmakers want as much as $50,000 forgiven per borrower. President Biden has said the number wouldn’t be that high but has previously suggested $10,000 forgiven for each borrower. Miguel Cardona, Secretary of Education, said in an NBC interview on Sunday that an announcement would be coming soon. Cardona said the Biden administration has been discussing options frequently.

“We know August 31st is a date people have been waiting to hear something from,” Cardona said. “We’ve been talking daily about this and I can tell you the American people will hear within the next week or so.”

The decision from the administration will be a divisive one. Democrats have vouched for forgiveness since before day one, making promises along the presidential campaign trail. Meanwhile Republicans argue it’s not a fair proposal for those who have paid their debts. They also say it will not help underlying causes of why so many Americans are buried in student loans. There is $1.6 trillion in student loan debt split among 48 million people. About 54 percent of borrowers with outstanding debt owe less than $20,000 according to College Board. About 45 percent of the total debt is held by 10 percent of borrowers owing $80,000 or more.