Home Borrower White House to consider forgiveness of $10,000 in student loan debt for borrowers earning less than $125,000

White House to consider forgiveness of $10,000 in student loan debt for borrowers earning less than $125,000

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In addition to this base student loan debt forgiveness for those below a certain income level, administration officials have also recently discussed the possibility of additional forgiveness for under-incomes. specific sets of the population, according to sources close to the internal discussions in the administration.

The announcement could come as early as Wednesday, but it’s not clear that a final decision on the details of the announcement – as well as the timing – has been made, and there could still be changes at the eleventh hour. . The White House is also expected to vote in the coming days on whether to further extend the current pause on federal student loan repayments, which is set to expire Aug. 31.

Payments have not been required on most federal student loans since March 2020, when the Covid-19 pandemic hit the United States, significantly affecting the economy. Biden has extended the hiatus four times, most recently in April, arguing it was necessary to allow federal student loan borrowers to get back on their feet.

CNN has reached out to the White House for comment.

In recent days, White House officials have been in communication with lawmakers to discuss their thinking on canceling student debt, ahead of the current pause on expiring payments. Last week, for example, Senate Majority Leader Chuck Schumer, Democratic Sen. Elizabeth Warren of Massachusetts and Democratic Sen. Raphael Warnock of Georgia held a discussion with senior White House officials, sources said.

The White House has suggested in the past that Biden is considering writing off $10,000 per borrower, but excluding those earning more than $125,000 a year.

The setting of an income cap, which has been the subject of intense debate both inside and outside the administration, was also intended as a buffer against criticism that the rebate would benefit to those who have the means to manage the repayment of their debt.

Education Secretary Miguel Cardona said Sunday that Americans can expect a decision from the administration on student loans within “next week.” With less than two weeks to go, Americans had to guess for weeks on whether Biden would extend the current moratorium or, perhaps, forgive some of their debt.

“We talk about it daily, and I can tell you that the American people will be hearing by about next week from the president and the Department of Education about what we’re going to do around this,” Cardona told NBC. Chuck Todd on “Meet the Press”.

He did not elaborate on specifics, saying he would not preempt the announcement.

Some Democratic lawmakers and advocates have urged Biden to globally cancel up to $50,000 in student loan debt per borrower, but the president has consistently pushed back against that cancellation.

Biden has forgiven more student loan debt than any other president, with his administration authorizing the cancellation of nearly $32 billion in loans largely for borrowers who were defrauded by their for-profit colleges and for borrowers with disabilities for life.

This story has been updated with additional reports.

CNN’s Sam Fossum contributed to this report.