Joe Biden is reported to be issuing a student loan forgiveness announcement, which will reportedly wipe out $10,000 in loan debt for borrowers making less than $125,000 per year.
The Daily Caller notes:
CNBC reported that Biden’s announcement on student loans could come “as soon as Wednesday.” The Wall Street Journal later reported that the administration is in fact making plans for an announcement on that day. The administration has spent months debating the subject of student loan cancellation and officials vowed a decision would come before the end of August.
While the White House has not confirmed official details of Biden’s plan, NBC News reported Tuesday that he will likely announce a $10,000 student loan forgiveness for individuals making less than $125,000 a year. Biden is also reportedly planning on extending the current pause on student loan debt payments, NBC News reported, citing sources familiar with the plans.
“The President will have more to say on this before August 31,” White House spokesman Abdullah Hasan told NBC News in response to the reports. “As a reminder, no one with a federally-held loan has had to pay a single dime in student loans since President Biden took office, and this Administration has already cancelled about $32 billion in debt for more than 1.6 million Americans — more than any Administration in history.”
Some members of the Democratic Party are likely to be disappointed with Biden’s reported decision. Senate Majority Leader Chuck Schumer and Democratic Massachusetts Sen. Elizabeth Warren, for example, have pushed Biden to cancel upwards of $50,000 in student loan debt. Meanwhile, more left-wing lawmakers like Independent Vermont Sen. Bernie Sanders have called for a full cancellation of student debt, Forbes previously reported.
The student loan forgiveness announcement will come just months before the November elections where the GOP is expected to reclaim one or both chambers of Congress — a referendum on the Biden administration’s policies.