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President Rejects Plan to Wipe Out $50K in Student Debt

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In the meantime, Biden has ordered the Education Department to pause all federal student loan payments through Sept. 30 and waive interest.

Video Transcript

- Well, if you were hoping to get $50,000 knocked off your student loan debt, not so fast. President Biden rejected that plan from Democratic lawmakers while speaking at that CNN Town Hall event, the president said he doesn't have the power to unilaterally cancel federal student loan debt. But, he did say he's prepared to write off a smaller amount-- $10,000.

These comments come after White House Press Secretary Jen Psaki said the administration was in favor of legislation from Congress to provide student loan forgiveness, since the White House was still reviewing what could be done through executive action. Now in the meantime, Biden has ordered the Education Department to pause all federal student loan payments through September 30th, and waive interest.