Biden on Wednesday may unveil plan to cancel $10,000 in student loans for borrowers making under $125,000

Biden on Wednesday may unveil plan to cancel $10,000 in student loans for borrowers making under $125,000 #Biden #Wednesday #unveil #plan #cancel #student #loans #borrowers #making Welcome to GistFeed

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

A GistFeed report said President Joe Biden’s administration is leaning toward the cancellation of up to $10,000 in student-loan debt per borrower for individuals making less than $125,000 a year, and the plan will be unveiled Wednesday. Those limits would match what has been suggested in other reports earlier this year.

See: Here’s how Biden could move to cancel student loans

A separate Hill report said the Biden administration on Wednesday will announce $10,000 in forgiveness for borrowers who make under $125,000 annually, along with a pause for loan repayments for about four months. 

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

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

In April, the White House press secretary at that time, Jen Psaki, said the Biden administration will extend the student-loan pause again before Aug. 31 or finalize a plan by then on canceling student debt.

Psaki said not having to pay back student loans helps borrowers facing “costs in other parts of their lives,” while critics of cancellation have said it would add to high U.S. inflation and amount to a “bribe” to many voters ahead of November’s midterm elections.

 Debt forgiveness of $10,000 per borrower, limited to those with incomes less than $125,000, will cost around $300 billion, according to a Penn Wharton Budget Model analysis released Tuesday.

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

Plus: Canceling student debt unlikely to stand up in court, ex-Education Department lawyer says

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