Personal Finance

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

Key Points
  • Biden's stimulus plan doesn't mention student loan forgiveness.
  • Administration officials say the president-elect still supports the move.
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. 

Biden Covid advisor Dr. Atul Gawande on concerns over mutated Covid strain
Biden Covid advisor Dr. Atul Gawande on concerns over mutated Covid strain

The financial fallout from the public health crisis has also increased calls for student loan forgiveness, and Biden faces mounting pressure to cancel more than $10,000 in debt per borrower and to bypass Congress to do so.

The Senate's top Democrat and incoming Majority Leader, Chuck Schumer, D-N.Y., is calling on Biden to forgive $50,000 per borrower on the first day of his presidency.

"All you need is the flick of a pen," Schumer said in December. "You don't need Congress." 

And Sen. Elizabeth Warren, D-Mass., recently described student debt forgiveness as "the single most effective economic stimulus that is available through executive action."

–CNBC's Jacob Pramuk contributed to this report.

This is a breaking news story. Please check back for updates.

More from Personal Finance:
Interest rates tank as Americans start to save more
Being unemployed in 2020 could lead to surprise tax bill
How to switch your Medicare Advantage Plan if you want to