The Biden administration will take action to extend the moratorium on student loan payments or decide whether he plans to cancel student debt through executive action in the coming months, White House Press Secretary Jen Psaki said.
The freeze on student loan payments “is either going to be extended or we’re going to make a decision” about canceling debt, Psaki said during a taping of the “Pod Save America” podcast.
Earlier this month, Biden extended a pandemic-related freeze on student loan payments until Aug. 31. The moratorium was put in place by former President Donald Trump in 2020, as part of federal efforts to minimize the financial impact of the coronavirus pandemic.
As a presidential candidate, Biden said he supported canceling $10,000 in federal student debt. Since he took office, the White House has said that Congress needs to pass legislation to do so. During a CNN town hall last year, Biden said he didn’t believe he had the authority to unilaterally cancel debt through executive action.
Progressive activists have pointed to a law that gives the education secretary the power to discharge debts as one way Biden could forgive loans. Psaki indicated that could be a possibility in her remarks on Thursday, saying the proposal was “still on the table.”
“Nobody’s had to pay a dollar, a cent, anything in student loans since Joe Biden has been president,” Psaki said. “And if that can help people ease the burden of costs in other parts of their lives, that’s an important thing to consider. That’s a big part of the consideration.”
Psaki did say that the White House still preferred a legislative solution, citing concerns that an executive action could be overturned by federal courts or future administrations.
