Student loans: Education secretary says announcement will come in ‘next week’ as August deadline approaches

About ten days from the end, Americans are wondering if President Joe Biden will extend the current moratorium or, perhaps, cancel part of their debt.

“We talk about it daily, and I can tell you that the American people will be hearing by about next week from the president and the Department of Education about what we’re going to do around this,” Cardona told NBC. Chuck Todd on “Meet the Press”.

He did not elaborate on specifics, saying he would not preempt the announcement.

“I have no news to report today,” he said.

The White House previously said Biden would have something to announce before the August 31 deadline.

Payments have not been required on most federal student loans since March 2020, when the Covid-19 pandemic hit the United States, significantly affecting the economy.

Biden has extended the hiatus four times, most recently in April, arguing it was necessary to allow federal student loan borrowers to get back on their feet.
Meanwhile, Democratic lawmakers and advocates have urged Biden to globally cancel up to $50,000 in student loan debt per borrower, but the president has consistently pushed back against that cancellation.

In addition to potentially extending the pause, the White House has suggested Biden consider waiving $10,000 per borrower, excluding those earning more than $125,000 a year — something he campaigned on in 2020. .

Biden has forgiven more student loan debt than any other president, with his administration authorizing the cancellation of nearly $32 billion in loans largely for borrowers who were defrauded by their for-profit colleges and for borrowers with disabilities for life.

CNN’s Katie Lobosco and Veronica Stracqualursi contributed to this report.

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