(PresidentialInsider.com)- According to the White House, President Biden is contemplating whether to use the income to determine eligibility for any student loan forgiveness programs in the future, according to a statement released Monday.
Last week, the president said that he would consider removing $10,000 in student loan debt per borrower, which would most likely be accomplished by executive order.
At Monday’s White House press conference, press secretary Jen Psaki was asked whether the administration was considering imposing an income restriction on any prospective student aid scheme.
“There is,” Psaki stated emphatically.
It is unknown what the maximum income would be for student debt forgiveness purposes if a cap on income were to be included in any prospective proposals for student loan forgiveness. According to reports, the notion of restricting the relief to persons who earned less than $125,000 or $150,000 as individual filers in the previous year has been discussed by officials. For married couples who pay their taxes jointly, this would equate to a threshold of around $250,000 to $300,000 in income.
Psaki stated that the purpose of income limitations is to guarantee that student debt relief is directed toward those in most need of assistance.
Psaki was also challenged whether the White House had conducted any research into the impact that prospective student debt forgiveness may have on inflation.
In response to a question, she stated that she is aware that there has been outside research on it, but she doesn’t have any inside analysis to preview.
Earlier this week, President Biden stated that he is “considering dealing with some debt reduction.”
According to Biden, he’s not considering a $50,000 debt reduction at this time but is examining whether or not there will be more debt forgiveness.
During his presidential campaign, Biden advocated for the cancellation of $10,000 in student debt for most students. However, he has raised concerns about his legal power to do so by executive order.
President Biden requested a document from the Education Department last year to investigate if he had the authority to erase student loan debt on his initiative.
The president, citing persistent economic challenges created by the COVID-19 epidemic, further extended the freeze on student loan payments through August 31 this year. In 2020, former President Donald Trump announced the first of several freezes on loan repayments.