President Joe Biden is poised to announce a sweeping package of student-debt relief, forgiving $10,000 in debt for borrowers who earn less than $125,000 per year and $20,000 in debt for Pell grant recipients, according to people familiar with the matter.
The president, who is expected to unveil the plan Wednesday, will also extend the moratorium on repaying student-loan debt for four months through Dec. 31, people familiar said. It would be the final pause that Biden backs, according to a person familiar with the matter. White House spokespeople did not immediately respond to a request for comment.
It’s the seventh extension of the freeze since the Covid-19 pandemic began in March 2020, and would take the pause beyond the November midterm elections, in which Democrats are hoping to stave off a loss of their slim House and Senate majorities. The latest pause in loan repayments is set to expire Aug. 31. Support from young voters could help boost Democrats’ showing.
For several months, Biden has been weighing forgiving $10,000 per borrower in student debt and capping the relief at incomes of $125,000 to $150,000 a year.
But advocates -- including progressive lawmakers, civil rights groups and labor leaders -- have pressured the White House to forgive higher debt-loads, arguing they are disproportionately carried by Black or lower-income students.
This article was provided by Bloomberg News.