24th August, 2022
President Joe Biden is set to announce on Wednesday his long-delayed move to forgive up to $10,000 in federal student loans for many Americans and extend a pause on payments to January.
Biden has faced pressure from liberals to provide broader relief to hard-hit borrowers, and from moderates and Republicans questioning the fairness of any widespread forgiveness.
The delay in Biden’s decision has only heightened the anticipation for what his own aides acknowledge represents a political no-win situation.
The precise details of Biden’s plan, which will include an income cap limiting the forgiveness to only those earning less than $125,000 a year, were being kept to an unusually small circle within the Biden administration.
They were yet to be finalized on the eve of the announcement, according to three sources close to the plan.
The nation’s federal student debt now tops $1.6 trillion after ballooning for years.
More than 43 million Americans have federal student debt, with almost a third owing less than $10,000 and more than half owing less than $20,000, according to the latest federal data.
Reported by AP