According to the Washington Post, the White House has not finalised details on the comprehensive student loan waiver. (Other reporting notes student loan waivers may come as early as tomorrow).
Inflation hit a 40-year high, and the last thing the Biden administration wants is the perception that a comprehensive student loan waiver will increase inflation.
The Biden administration is weighing the notion that wide-scale student loan waivers lead to redistribution of funds. while other policies redistribute wealth.
According to the latest student loan loan statistics, there are 45 million borrowers who collectively pay $1.7 trillion in student loans. About 250 million adults are Americans.
Biden will also weigh the political impact of large-scale student loan cancellations. The midterm election is on November 8, and Democrats could lose control of Congress.
Biden has said he will decide on a massive student loan waiver before August 31, 2022. With only a few days left, an announcement is expected from Biden on student loan waivers
As the Washington Post notes, there are several reasons why the Biden administration is carefully weighing the decision to cancel extensive student loans.