WASHINGTON — President Joe Biden intends to announce his long-delayed decision on canceling some student debt on Wednesday. Biden has yet to finalize the details of his plan, but any choice he makes on the contentious issue is likely to draw criticism from both parties and risks shifting the political winds that have recently begun blowing in Democrats' favor.
Biden returns from a two-week vacation Wednesday and preparations are underway for an event at the White House to announce his decision, according to a person familiar with the matter. Aides expect the president to land somewhere close to forgiving up to $10,000 of federal student loan debt for borrowers earning less than $125,000 a year, the person said. More than 40 million Americans making under $125,000 have at least some student debt.
Biden had vowed to act before Aug. 31, when the latest pandemic-driven moratorium on federal student loan payments runs out. He is also weighing whether to extend that pause on loan payments and interest one more time. President Donald Trump first suspended payments in March 2020, and Biden has granted four extensions. So far, the suspensions have cost the federal government more than $100 billion. More than 40 million Americans owe a collective $1.6 trillion in federal student loans.
