WASHINGTON, D.C., USA — Why could a big announcement about student loan debt be coming soon?
Student loan payments are expected to resume Aug. 31 after the government paused federal loan payments during the pandemic.
As the deadline looms, the White House has reportedly resumed talks about canceling student loan debt for some borrowers. The Wall Street Journal reports President Biden could announce as soon as Wednesday what he has decided to do.
According to the Washington Post, Biden and his team have discussed several proposals. They include canceling $10,000 in federal student loan debt for anyone making less than $125,000 a year. That would reportedly erase the debt of nearly one-third of borrowers and cut the total debt in half for another 20%.
There has also been talk of extending the pandemic pause on payments.
Those plans do not go far enough for some progressives. They have been calling for $50,000 in debt to be canceled per borrower, or even canceling all student loan debt.
That has run into opposition from Republicans, with some saying it is not fair to people who have already paid of their loans or never went to college.