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FORGIVENESS TO STUDENT DEBTS MIGHT BE REVIEWED BY THE WHITE HOUSE

Updated: Jun 15, 2022

President Biden is considering limiting forgiveness of student loans to individuals who earn less than a specific income, said on Sunday (1st) the chief observer at the White House, Brazilian journalist Fernando Hessel.


The White House is planning to limit cancellation for those who earn less than US$ 125.000 or US$ 250.000 for married couples filing jointly.


“There are different proposal going around the government on how to structure it”, said a government authority.


“Over the last week, the administration and a Congress team concentrated the conversation on debt cancellation towards the best way of fulfilling the President’s wish to assure that economically more vulnerable people with a student debt may benefit from this action”, said the source.


In the beginning of the week, Biden denied that the debt relief was up to US$ 50.000 per borrower, but he said he would say more about this subject in the next few weeks. President Biden is considering limiting forgiveness of student loans to individuals who earn less than a specific income.


For Cesar Coutinho, a Brazilian executive of TrueX Business, a consultancy company of global business in United States, there is a great challenge for Joe Biden’s government in looking for fiscal balance in the country.


“Maybe this is the most difficult campaign promise of the American President, increasing taxation for richer individuals. This policy requires courage for a public person. This might work in a short term, especially in a crisis period; but on the other hand, it poses the risk of resulting in extremely serious political issues if Biden tries to reelection”, explains Coutinho.

Source: america24h

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