Biden to share decision on student loan moratorium, forgiveness this week: Report

College grads
(Image credit: Supachok Pichetkul / EyeEm)

For those waiting for a decision regarding their student loans, it looks like an update could be coming any day now.

President Biden is expected to announce as early as Wednesday whether or not his administration will be forgiving up to $10,000 in student debt or extending the current repayment moratorium, Reuters reports per a source familiar with the matter.

The current payment pause is set to expire on Aug. 31, and borrowers have been eagerly awaiting news of an expected extension. Student debt relief advocates also think Biden will announce a plan to forgive as much as $10,000 for borrowers that make under $125,000 a year, Reuters writes.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

But as for what actually happens ... well, only time will tell. The White House has kept details of the decision close to its proverbial chest, The Wall Street Journal writes, and "only a small group of Mr. Biden's top aides have been informed of his plans."

Forgiving just $10,000 in debt for certain individuals would fail to satisfy progressive calls to forgive up to $50,000 per borrower — but it's certainly better than nothing. Meanwhile, Republicans have opposed any plan for widespread debt forgiveness, arguing that such a move is unfair to anyone who either paid off their loans or didn't go to college, and could also worsen inflation, notes the Journal.

To continue reading this article...
Continue reading this article and get limited website access each month.
Get unlimited website access, exclusive newsletters plus much more.
Cancel or pause at any time.
Already a subscriber to The Week?
Not sure which email you used for your subscription? Contact us