President Joe Biden is set to extend a pause on student loan payments through Dec. 31, cancel up to $10,000 in obligationS for most borrowers and another $20,000 for Pell recipient, using his executive authority to forgive a portion of the federal debt burden.
The White House’s plans are only expected to apply to Americans earning under $125,000 per year, or $250,000 per year for married couples who file taxes jointly, the people familiar said.
Roughly 43 million federal student loan borrowers would be eligible for some level of forgiveness, including 20 million who could have their debt completely canceled, according to White House sources.
The White House estimates that 90 percent of relief will go to Americans earning less than $75,000.
Biden is returning today to Washington, where he is also expected to announce AT 2:15 pm that he will extend a pandemic-era pause on federal student loan payments that was first implemented under the Trump administration.
That moratorium will now be extended until Dec. 31, or beyond the midterm elections, the people said.
Biden has drawn the ire of activists and some student loan borrowers who were growing tired of promises of a decision that stretched over more than a year.
Biden had previously expressed reluctance to grant forgiveness to people who attended elite universities, while moderate Democrats and Republicans derided the policy as fiscally irresponsible.