With Democrats holding a majority in the House and Senate, one expert believes the Biden administration to take bold action on the nearly $1.7 trillion in student loan debt held by roughly 43 million Americans.
“There are really three buckets of action we should expect,” Isaac Boltansky, director of policy research at Compass Point Research & Trading, told Yahoo Finance Live.
Boltansky expects the Biden administration to push for raising tuition funding, amend bankruptcy laws, and offer a low level of student loan cancellation through legislation passed in Congress.
From Tuition relief to debt forgiveness
President-elect Joe Biden recently said that he wasn’t intending to cancel $50,000 in student loan debt through executive order, a move repeatedly urged by many of his Democratic colleagues. Consequently, Boltansky’s predictions are based on what could be done through legislation.
The first, he said, “is a real, pronounced push to increase tuition relief for certain borrowers.”
Biden promised to double the maximum value of the federal Pell Grant, which is the largest source of grants for low- and middle-income families to afford a college education.