President Joe Biden is considering income as a factor in his decision whether to forgive some federal student loans for American borrowers, the White House’s top spokeswoman confirmed Monday.

What You Need To Know

  • President Biden is considering income when it comes to his decision whether to forgive some federal student loans for American borrowers

  • Biden has previously confirmed he is considering “some debt reduction" and that he will have a decision in the next couple of weeks

  • White House press secretary Jen Psaki said Biden has spoken about the idea of imposing an income cap for forgiveness in the past

Biden has previously confirmed he is considering “some debt reduction,” saying he’s taking a “hard look” at debt forgiveness and will have a decision in the next couple of weeks.

The president confirmed that he is not considering $50,000 in forgiveness for each borrower, as some progressive Democrats and advocates have urged. 

White House press secretary said any forgiveness plan could take borrowers’ incomes into consideration.

“There are a number of schools … that have larger endowments and other schools — public universities and others,” she said. "What he's referencing is making sure it's targeted to those graduates who have the greatest need."

Psaki said Biden has spoken about the idea of imposing an income cap for forgiveness in the past, but added: “We’re not at the point where we have a final proposal or final executive action or anything along those lines."

Many of Biden’s social proposals have centered around income, such as direct stimulus payments from the COVID-19 relief bill, the American Rescue Plan, or his ideas about how much families should pay for childcare or college, which were part of his Build Back Better bill that stalled in the Senate.

“That's the goal, right, is to make sure it's targeted to people who need help the most,” Psaki said of student loan forgiveness Monday.

Any decision is expected before the end of August, when a freeze on student loan payments and interest is set to expire. The freeze has been in place since then-President Donald Trump first authorized it in March 2020.

Biden campaigned on a promise of canceling up to $10,000 for the 43 million student loan borrowers nationwide. While he has not yet fulfilled that promise, he has taken several actions to provide student loan relief to specific populations, plus he has extended the pause on payments due to the COVID-19 pandemic four times.