The Biden administration is leaning toward canceling up to $10,000 in student loan debt for those who make less than $125,000 a year, according to a new report.
CNN reported that the announcement could come Wednesday, and that additional forgiveness for specific parts of the population are on the table as well.
Liberal Democrats such as Sen. Elizabeth Warren of Massachusetts have pressed for a far more sweeping loan forgiveness program. The income cap was seen as a way of insulating the White House from criticism that the debt relief is benefiting those who can afford their payments, per CNN.
Sources told the network that the White House will also weigh in on the Aug. 31 expiration of the moratorium on student loan payments.
Last month, the Education Department told loan service providers not to contact borrowers about resuming payments, according to reports.
Student loan payments have been paused for 43 million federal borrowers since the onset of the COVID-19 pandemic in March 2020.
The moratorium has been extended six times under both the Trump and Biden administrations, even though deficit hawks have criticized the cost of the possible loan forgiveness plan to the federal budget.
