Biden could reportedly cancel up to $10,000 in student debt for borrowers making under $125,000 a year this week

It might have been the last days of waiting for student loan forgiveness.

According to sources familiar with the White House plans, President Joe Biden is leaning towards canceling up to $10,000 in student debt for borrowers who make less than $125,000 a year. A source told Insider that the announcement could come as early as Wednesday.

The student loan payment pause is set to end. In April, Biden extended the pause for his fourth time, through August 31, and the president and education secretary have confirmed a decision on another extension of the payment pause, along with broad debt cancellation, will be announced before the August 31 deadline.

August 31st is a date many people are waiting to hear from. The American people will hear about what the Department of Education will be doing around that in a week or so.

The White House and the department have not publicly confirmed details of student-loan forgiveness or the possibility of another extension of the payment pause, but calls have been ramping up from Democratic lawmakers and advocates to take borrowers out of limbo and deliver them financial certainty The NAACP Director of Youth and College Wisdom Cole wrote in a statement that if student debt repayments can be paused over and over and over again, there's no reason why they shouldn't be stopped.

In April, Biden said he wouldn't be canceling as much as $50,000 in student debt, and his advisors were worried about the impact on inflation. The net inflationary effect should be neutral, according to a member of the White House Council of Economic Advisers.

The Education Department recently ordered student-loan companies to stop talking about the payment restart, so there's a chance the payment pause will be extended. According to documents obtained by Politico, the department is prepared to implement relief once announced, but advocates are concerned about targeting the relief based on income.

The paperwork burden could shut those who need the most loan forgiveness out. "You're not making the policy more progressive because of how hard it's going to be for folks to demonstrate that they have a low enough income to benefit," said the executive director of the Student Borrower Protection Center.

The White House can change its mind at any time prior to the announcement, and the expectation is that student-loan news will be out before the end of August.