BALTIMORE — People with student loan debt who've been waiting to find out if the pandemic pause on payments will continue could find out as soon as Wednesday.
President Biden is expected to make an announcement on not only extending the pause on payments but potentially forgiving student loan debt as well.
White House officials have been considering extending the hold on payments due to January and canceling up to $10,000 in student loan debt per borrower for those who make less than $125,000 a year.
The continuation of the pandemic payment pause comes just days before millions of Americans were set to find out when their next student loan bills will be due.
Biden has faced pressure from all sides to make a decision on student loans.
Liberals want the president to provide relief to hard-hit borrowers, while moderates and republicans question the fairness of any widespread loan forgiveness.
Whatever he decides, politically it's a no-win situation for the president.
White House press secretary Karine Jean-Pierre said “the president understands how student loans could affect a family and how the pressure of that can really be a lot and put a lot of weight on a family's person or economic situation. So, we understand that he is making he is going to make his decision on this."
Financial experts believe canceling student debt will make it harder to drive down inflation.
Committee for a Responsible Federal Budget senior vice president & senior policy director, Marc Goldwein said “a more targeted approach would focus on income-driven payments and college affordability in the first place. That means pushing college to accept more AP credits and transfers from community colleges, more no frills degrees, cutting out administrative waste. We need to make college affordable, not send a $10,000 gift to people that already have in many cases already advanced degrees."
Meanwhile, Maryland comptroller Peter Francot wants to remind Marylanders to apply for the Student Loan Debt Relief Tax Credit program.
The program provides an income tax credit for Maryland residents on their student loans.
To be eligible, borrowers have to claim Maryland residency for the 2022 tax year, file 2022 Maryland state income taxes and have incurred at least $20,000 in student loan debt, with at least $5,000 in outstanding.
The deadline to apply is September 15th.
Franchot said more than 40,000 Marylanders have benefited from the tax credit program since it was created in 2017.
Apply for the Maryland Student Loan Debt Relief Tax Credit HERE.
