President Joe Biden is expected to announce a plan Wednesday to cancel thousands of dollars in student loan debt, according to new reports.
CNN and Reuters reported Monday that the president would make the announcement, with CNN saying it will come after Biden returns to Washington from his Delaware beach house on Wednesday.
The plan is to cancel up to $10,000 in student loan debt for borrowers who make below $125,000 per year.
No final decision has been made and further details were not provided.
It is also suspected that officials have been leaning toward a final short-term extension of the freeze on federal loan repayments.
The deferment is scheduled to expire on August 31, leaving Americans to wait on the Department of Education for guidance on student loan payments.
Payments on most federal student loans have not been required since March 2020, when the Covid-19 pandemic began in the U.S.
The pause on repayments was extended six times under Biden and former president Donald Trump.
Education Secretary Miguel Cardona hinted Sunday that an announcement on either the issues would come in the next week.
“We know Aug. 31 is a date that many people are waiting to hear something from,” he said on NBC’s “Meet The Press.”
“We’ve been talking daily about this, and I can tell you the American people will hear within the next week or so,” he added.
When asked for a comment, a White House official said “The President will have more to say on this before August 31.”
“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 canceled about $32 billion in debt for more than 1.6 million Americans — more than any Administration in history,” the official added.
Some Democrats have repeatedly urged Biden to forgive up to $50,000 of loans per borrower, which he has rejected.
Missouri Rep. Cori Bush tweeted Monday “Student debt is a nearly $2,000,000,000,000 crisis. @POTUS must #CancelStudentDebt. All of it.”
Massachusetts Rep. Ayanna Pressley, who has pushed Biden to cancel student debt in the past, said “Student debt cancellation is a kitchen table issue and @POTUS must #CancelStudentDebt.”
Others have warned about the issues cancelling student debt would cause while also pointing out that borrowers should bear the responsibility.
“Joe Biden has had a lot of bad ideas. But transferring billions in student loan debt to taxpayers—especially at a time of high inflation—might be his worst idea yet,” said Arkansas Sen. Tom Cotton.