Student loan borrowers await Biden plan on debt forgiveness
Millions of Americans were waiting to learn the fate of their federal student debt on Wednesday as President Joe Biden prepared to deliver on his campaign promise to provide up to $10,000 in debt cancellation.
Details of the plan have been kept closely guarded, but borrowers who earn less than $125,000 a year would be eligible for the loan forgiveness,
according to three people familiar with the decision. Biden is also set to extend a pause on federal student loan payments through January.
If it survives legal challenges that are almost certain to come, Biden’s plan could offer a windfall to a swath of the nation in the run-up to this fall's midterm elections.
More than 43 million owe a combined $1.6 trillion in federal student debt, with almost a third owing less than $10,000, according to federal data.
Still, the action is unlikely to thrill any of the factions that have been jostling for influence as Biden weighs how much to cancel and for whom.
Biden has faced pressure from liberals to provide broader relief to hard-hit borrowers, and from moderates and Republicans questioning the fairness of any widespread forgiveness.
The delay in Biden’s decision has only heightened the anticipation for what his own aides acknowledge represents a political no-win situation.