WASHINGTON Wednesday at the White House, President Joe Biden is anticipated to make the announcement that he will forgive $10,000 in federal student debt for each borrower earning $125,000 or less annually.
According to numerous people with knowledge of the situation, he is also anticipated to prolong the federal student loan payment suspension for an additional few months.
The White House has claimed that no final decision has yet been taken, despite Biden’s prior statement that he would announce the cancellation of student debt before the end of the month.
White House spokesman Abdullah Hasan stated that the president would have more to say about this issue before August 31. As a reminder, since President Biden took office, no one with a federally held loan has had to make a single payment toward their student loans, and this administration has already forgiven more Americans’ debt—about $32 billion worth—for more than 1.6 million people than any other administration in history.
It is unclear if there will be any new requirements to meet in order to be eligible for student loan forgiveness.
The announcement is anticipated at a time when Biden is under fire from advocates for student debt relief for his protracted decision-making process, which has left millions of borrowers uncertain about whether they will be required to start making payments when the moratorium expires at the end of August.
Despite the fact that Biden is anticipated to keep his main campaign commitment to alleviate student debt, the action falls short of the $50,000 in cancellation that some Democrats have demanded.
A Democrat familiar with the conversation told NBC News that Senate Majority Leader Chuck Schumer, D-N.Y., called Vice President Joe Biden on Tuesday night “to make a final push to the president to cancel as much student loan debt as he can. According to Schumer, it is the ethical and prudent course of action, the person said.
According to a person with knowledge of the conversation, White House chief of staff Ron Klain called Schumer, Democratic Sens. Elizabeth Warren of Massachusetts, and Raphael Warnock of Georgia on Friday and urged them to take action on this matter. All three senators have made clear their support for the general cancellation of student loans.
Some debt relief proponents have also urged the White House not to eliminate the means test, claiming that requirements like an income cap would make it difficult to implement.
About 45 million Americans are in debt for their education. According to the Federal Reserve, Americans owned more than $1.7 trillion in student loan debt in the second quarter of 2022.
In Washington, Ali Vitali works as a Capitol Hill journalist for NBC News.
Associate producer for the NBC News Washington bureau is Haley Talbot.
White House correspondent for NBC News is Monica Alba.
White House reporter Lauren Egan works for NBC News out of Washington.
Contributors included Frank Thorp V and Kristen Welker.