CNN reported Monday that the Biden Administration could forgive up to $10,000 of student loan debt for Americans who make less than $125,000 a year.
On August 5, the president spoke.
CNN reported that the White House may unveil its student loan forgiveness program as early as Wednesday.
The Biden Administration is leaning toward forgiveness of $10,000 per loan for borrowers with an income limit, according to the outlet.
The plan is similar, but not identical, to earlier proposals weighed by the White House.
The Department of Education was contacted by Forbes.
The Secretary of Education said on Meet the Press on Sunday that a decision on student loans would be made within a week or so. If the moratorium on federal student loan payments and interest is not extended, borrowers will be forced to make monthly payments for the first time in over a year.
President Joe Biden has repeatedly extended the student loan payment moratorium and offered targeted loan forgiveness for attendees of certain schools and other borrowers, but some Democrats have pressured him to cancel a lot of the student loans. Biden said on the campaign trail that he wanted to forgive $10,000 of student debt per person, but he has openly questioned whether he has the legal authority to do more without congressional approval. Some progressives have argued against imposing an income limit, while Senate Majority Leader Chuck Schumer has pushed Biden to forgive 50,000 borrowers. A majority of Democrats favor a loan cancellation program while Republicans are against it.
A majority. According to a poll sponsored by CNBC, 22% of Americans are worried that student loan forgiveness will cause inflation to go up. 34% of respondents want student loans to be forgiven for people in need, while 30% think nobody should.
A broad debt forgiveness program could add to inflation and wouldn't do anything to help future students who can't afford to go to college. If the administration decides to permanently forgive debt, it should only give a small amount of relief to those with genuine middle class incomes, according to the Clinton-era Treasury Secretary.
The White House is considering canceling student loan debt for people who make less than $125,000.
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