Student loans

Biden could unveil his plan on Wednesday to cancel $10,000 in student loans for borrowers earning less than $125,000

The Biden White House appears poised to make an announcement on student loan debt forgiveness on Wednesday, according to multiple published reports citing unnamed sources.

A CNN report said President Joe Biden’s administration is leaning towards forgiving up to $10,000 in student loan debt per borrower for people earning less than $125,000 a year, and the plan will be unveiled on Wednesday. These limits would be consistent with what was suggested in other reports earlier this year.

See: Here’s how Biden could cancel student loans

A separate Hill report said the Biden administration would announce a $10,000 rebate on Wednesday for borrowers who make less than $125,000 a year, as well as a pause in loan repayments for about four months.

During this time, a Bloomberg report said the White House plans to make its long-awaited loan forgiveness announcement on Wednesday, but the substance of the announcement is not yet clear.

Education Secretary Miguel Cardona said Sunday that an announcement on federal student loans would come “within a week or two,” before the current pause for loan repayments ends on Aug. 31.

In April, then-White House press secretary Jen Psaki said the Biden administration would extend the student loan pause again by August 31 or finalize a cancellation plan by then. student debt.

PSAKI said not having to repay student loans helps borrowers cope with “costs in other parts of their lives”, while critics of the cancellation said it would add to the strong US inflation and would be equivalent to a “bribeto many voters ahead of November’s midterm elections.

Debt forgiveness of $10,000 per borrower, limited to those with incomes below $125,000, will cost about $300 billion, according to a Penn Analysis of the Wharton budget model published on Tuesday.

Now read: Here’s how to craft a student loan forgiveness in a way that weeds out those who don’t need help

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