Psaki Makes a Big Announcement

Biden recently canceled about $7 billion in student debt loans, using a data-sharing initiative between federal agencies to find those with student loan debt that are disabled and thus unable to pay back their debts to wipe away those debts. Forbes, reporting on that policy, said:

Last year, the Biden administration announced a new initiative to streamline student loan relief for certain disabled borrowers. By allowing the Social Security Administration to share data with the Education Department about borrowers who were receiving Social Security Disability benefits, the administration could identify borrowers who would qualify for the TPD discharge program, and then cancel their student loans automatically.

Today, the administration announced that through this data sharing initiative, the Education Department has cancelled approximately $7 billion in federal student loan debt for 350,000 borrowers.

Biden has also paused repayment of all student debt since he’s been in office and called for legislative action to cancel up to $10,000 in student debt per student. That action has not yet come to pass.

Speaking on what other plans Joe might have regarding student debt cancelation, Psaki, appearing on Pod Save America, said:

Yes, still on the table. … So, as you said, it ends August 31. We have to then decide whether it’s extended and what you look at is, even though the economy’s very strong, we created more jobs last year than any year in history, even though that’s the case, we know, as we’ve been talking about, costs are too high. And certainly, not having to pay back student loans — nobody’s had to pay a dollar, a cent anything in student loans since Joe Biden’s been president, and if that can help people ease the burden of costs in other parts of their life, that’s an important thing to consider. That’s a big part of the consideration. So, between now and August 31, it’s either going to be extended or we’re going to make a decision…about canceling student debt.”

While there has been no legislative action regarding student debt cancelation as of yet, Senate Majority Leader Chuck Schumer recently said that it’s “the way to go” and that Biden is open to the idea, saying:

Make no mistake about it: this pause isn’t going to stay forever, and the canceling of student debt is the way to go.

“We’re working on it. We’re making progress, folks. We are making progress. The White House seems more open to it than ever before.” Read more

3 thoughts on “Psaki Makes a Big Announcement”

  1. The banks take a $7 billion hit. Bet they will rush to make student loans in the future

    Oh, cancelled debt is taxable income for those whose loans are cancelled.

  2. Since my daughter & us, we RESPONSIBLE enough to pay off her student loan, when do we get a refund? So, instead of buying a new car every other year and taking extravagant vacations, and paying off the loans, we get penalized? IF I would have known that I would have never paid them off and leached off the government like the rest of the leaches!
    BUT, I was raised better than that, so we took the RESPONSIBILITY to pay them off!
    I still want a refund!

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