Biden’s call for $10,000 in student loan forgiveness not included in stimulus plan

Personal finance

President-elect Joe Biden puts on a mask after receiving his second dose of the Pfizer/BioNTech COVID-19 vaccination at ChristianaCare Christiana Hospital on January 11, 2021 in Newark, Delaware.

Alex Wong | Getty Images

Senior officials of the incoming Biden administration say the president-elect still supports forgiving $10,000 in student debt per borrower although there’s no mention of the loans being cancelled in his outline for a $1.9 trillion stimulus package unveiled on Thursday.

There’s also no reference to extending the payment pause and interest waiver for student loan borrowers that’s expected to expire this month. An aide for the administration said last week that Biden would give borrowers more time before they have to resume their payments.

The vast majority — or around 90% — of federal student loan borrowers have taken advantage of the government’s option to pause their payments during the pandemic, data shows.

In a recent Pew survey, 6 in 10 borrowers said it would be difficult for them to start paying their student loan bills again in the coming month. 

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