JACKSONVILLE, Fla. – President Joe Biden could make a huge announcement concerning student loan cancellation as soon as Wednesday.
According to reports from NBC News, Politico and The Hill, sources said President Biden is expected to extend the student loan repayment pause for months and forgive loans up to $10,000 for people who make $125,000 a year or less. But nothing is set in stone, according to the Washington Post.
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The Post reported that people inside the White House are going back and forth over whether the administration should make the move. Biden has yet to communicate a decision, the Post reported, but he is expected to make some kind of student loan announcement on Wednesday.
Students have been anxiously awaiting a decision as loan payments that have been deferred since the start of the pandemic are expected to resume Sept. 1. The White House, under Biden and former President Donal Trump, has extended the pause six times since March 2020.
Since Biden has taken office, his administration has approved over $31 billion in student loan relief, but that relief has only extended to certain cases, The Hill reported.
Supporters have argued Biden should fulfill a campaign promise to cancel debt for millions of young Americans, but critics say it could make inflation worse and would mostly benefit college graduates who don’t need help.
One in five Americans has student loans, according to a Federal Reserve study.