Three sources with knowledge of the situation tell The Hill that the White House is going to announce a plan to cancel a portion of student loan debt on Wednesday.
There will be at least $10,000 in loan forgiveness for borrowers who make less than $125,000 a year, as well as another payment freeze for roughly four months, according to sources.
It would be the largest forgiveness of student loans ever.
The White House has set a self-imposed deadline of August 31st. The Department of Education has not said if student loan payments will resume next month.
Within the smallest window of time borrowers have had to decide when their payments would resume, there is a potential announcement on Wednesday. Since March 2020, the White House has extended the pause six times, sometimes giving borrowers a month's notice if their bills are due.
40 million Americans were put on hold as a result of Trump's order temporarily stopping the accrual of interest on student loans.
Hundreds of thousands of borrowers have received student loan relief since Biden took office. Those who have attended schools found to have misled students, borrowers with disabilities and those participating in the Public Service Loan Forgiveness program have been given relief.
Some Democrats and activists who have pushed the Biden administration to forgive more student loan debt won't be satisfied with the $10,000 in forgiveness.
In May, Senate Majority Leader Charles Schumer (D-N.Y.), Sen. Elizabeth Warren (D-Mass.) and Sen. Schumer is one of the Democrats who have pressed for debt cancellation.
At 1:45 p.m., there was an updated version.
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