The Biden administration is considering what action to take to address the student debt crisis facing millions of Americans. President Biden promised to look at some form of student loan forgiveness while running for office, but is yet to pass any major legislation tackling the burden for borrowers.
Earlier in April the White House extended the pause on federal student loan repayments through 31 August. The administration will make a decision on exactly what relief to offer before that date.
Education Secretary Miguel Cardona told CBS News: “In terms of the loan forgiveness, there is no simple solution here, but we do know that our borrowers do need relief.”
Who would benefit from student loan forgiveness?
Last year the Education Data Initiative found that the total amount of outstanding student loan debt in the United States is an astonishing $1.75 trillion. The average amount of student loan debt per borrower is currently over $40,000.