US President Joe Biden's administration has not made a final decision on student loan cancellation, a White House representative said on Friday, after a news report claimed the president was planning to cancel $10,000 in debt per borrower.
The Washington Post report cited three people familiar with the plan, saying that the $10,000 in debt forgiveness would apply to Americans who earned less than $150,000 in the previous year or less than $300,000 for married couples filing jointly.
White House spokesman Vedant Patel said the report was inaccurate.
“No decisions have been made yet. But as a reminder, no one has been required to pay a single dime of student loans since the president took office,” he told Reuters.
The current pause in student debt interest and payments due to Covid-19 expires at the end of August.
The sources, who were not identified, told the newspaper that details could change.
A study by New York Federal Reserve economists showed that forgiving $10,000 per student would amount to $321 billion in federal student loans and eliminate the entire balance for 11.8 million borrowers, or 31 per cent.
“Administration actions have already provided more than $18.5bn in targeted debt relief to more than 750,000 borrowers,” Mr Patel said.
“Not to mention tens of billions more saved by the 41 million borrowers who have benefited from the extended student loan payment pause.”
Student debt cancellation has become a priority for many liberals and one that could shore up popularity with younger and more highly educated voters, who lean Democratic, before November's midterm congressional elections.
But the Biden administration has been reluctant to unilaterally cancel college debt owned by the US government, a move that would test his legal authority.
Instead, Mr Biden has asked Congress to pass a bill forgiving debt that he could then sign.
The federal government has allowed 43 million borrowers stop paying on a total of $1.6 trillion in student loans since the onset of the Covid-19 pandemic in 2020.
“I am considering dealing with some debt reduction,” Mr Biden told reporters on April 28.
But he said he was not considering the $50,000 debt reduction that some progressive Democrats have proposed.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Gulf rugby
Who’s won what so far in 2018/19
Western Clubs Champions League: Bahrain
Dubai Rugby Sevens: Dubai Hurricanes
West Asia Premiership: Bahrain
What’s left
UAE Conference
March 22, play-offs:
Dubai Hurricanes II v Al Ain Amblers, Jebel Ali Dragons II v Dubai Tigers
March 29, final
UAE Premiership
March 22, play-offs:
Dubai Exiles v Jebel Ali Dragons, Abu Dhabi Harlequins v Dubai Hurricanes
March 29, final
MAIN CARD
Bantamweight 56.4kg
Abrorbek Madiminbekov v Mehdi El Jamari
Super heavyweight 94 kg
Adnan Mohammad v Mohammed Ajaraam
Lightweight 60kg
Zakaria Eljamari v Faridoon Alik Zai
Light heavyweight 81.4kg
Mahmood Amin v Taha Marrouni
Light welterweight 64.5kg
Siyovush Gulmamadov v Nouredine Samir
Light heavyweight 81.4kg
Ilyass Habibali v Haroun Baka
MATCH INFO
Champions League quarter-final, first leg
Ajax v Juventus, Wednesday, 11pm (UAE)
Match on BeIN Sports
