White House Planning Student Loan Announcement Wednesday

White House officials are planning for President Biden to make an announcement on Wednesday about his proposal for dealing with student-loan debt, according to people familiar with the matter.

The president and his senior aides have for months been weighing whether to cancel some federal student loan debt.

Mr. Biden’s top advisers have discussed several proposals, including eliminating $10,000 in federal student-loan debt for borrowers making less than $125,000 a year, the people said.

The president’s advisers have also discussed extending a pandemic pause on federal student-loan payments.

The White House has kept the details of the decision closely guarded. Only a small group of Mr. Biden’s top aides have been informed of his plans, some of the people said.

Mr. Biden is scheduled to return to the White House on Wednesday from Delaware, where he is on vacation with his family. 

 The president has said he would announce a decision on student loans by Aug. 31. The White House didn’t immediately respond to a request for comment.

A move to forgive $10,000 in student debt under certain income thresholds would fall short of progressive Democratic demands for full student-debt cancellation or for canceling $50,000 per borrower, but it could apply to the majority of the 40 million people who hold a total of $1.6 trillion in student-loan debt.