Does President Joe Biden have a plan for canceling student loan debt? If so, would it include canceling $10,000 per student in loan debt, or even $50,000? The average college student has accumulated tens of thousands of dollars in student loan debt. While some hoped he would address it during his speech before Congress on Wednesday, Biden has yet to present a plan for reducing the roughly $1.7 trillion in student debt.
With the American Rescue Plan Act, eligible Americans received a third stimulus check and “plus-up payments,” more money for unemployed individuals, thousands of more dollars for families with the new child tax credit and changes to health care savings. One group not addressed in the relief package, however, is students who are in debt.
In March, the president did forgive $1 billion in loans for students defrauded by for-profit institutions, but debt hasn’t been canceled across the board. Here’s where the situation stands now when it comes to student loan forgiveness; we’ll continue to update this story as it develops. Also, you could get up to $50,000 back with one-time COVID credits. For more on the new child tax credit, check here to see who is eligible and how to calculate your total.
What you should know about student loan debt today
During his presidential campaign, Biden called for forgiving $10,000 of federal student loan debt per person. He also laid out additional plans for college students in the Biden Plan for Education Beyond High School, such as free tuition and more money for federal grants.