The Biden administration is weighing up using income to determine eligibility as part of a potential plan to cancel hundreds of millions of dollars of federal student loan debt but has not yet analyzed how it would impact inflation, the White House said Monday.
Biden promised during his 2020 presidential campaign that he would cancel $10,000 debt for each borrower.
An analysis by the Federal Reserve Bank of New York says that doing so would translate to canceling $321 billion in federal student loans, or the entire balance for 11.8 million borrowers.
Last week, the president floated that idea again, which would possibly be through executive action, although it is unclear if he has the legal authority to do so.
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