President Biden used student loan reform to 'push the idea that $15 should be the minimum wage,' expert says. Here's how

cnbc.com:

The Biden administration seems to have pegged a student loan policy announced Wednesday to its broader push for a national $15-an-hour minimum wage.

The White House detailed a long-awaited plan to forgive up to $20,000 in federal student debt for borrowers, and extended a payment pause through the end of 2022.

But tucked into the broader package of policy measures were tweaks to «income-driven repayment plans.» These plans help make monthly payments more affordable for low-income borrowers.

The administration linked one of those tweaks — specifically, one relative to a definition of «non-discretionary» income — to a $15 minimum wage.

President Biden and many Democrats have called for a $15 hourly wage floor across the U.S. The policy was scrapped as part of negotiations around a social spending package in 2021, and hasn't yet mustered enough support for passage in Congress. Biden in January issued an executive order for federal workers and employees of federal contractors to receive a $15 minimum wage.

The current federal minimum wage is $7.25 an hour and has remained unchanged since 2009.

«It's another way of continuing to push the idea that $15 should be the minimum wage,» Abigail Seldin, CEO of the Seldin/Haring-Smith Foundation said of the new policy.

Seldin was a former candidate to oversee student loans for the Biden administration.

The White House and U.S. Education Department didn't respond to a request for comment.

More from Personal Finance:How to get a student loan refund and boost forgivenessWhat to know about Biden's student loan forgiveness planHow to know if you have a Pell Grant for student loan forgiveness

«Non-discretionary» income is basically the income a household funnels into essentials like rent,