President Joe Biden is expected to announce a much-anticipated debt forgiveness program on Wednesday, sources familiar with the plan told The Associated Press.
Americans are gearing up for a nearly $300 billion deal with President Biden's expected announcement on Wednesday to forgive thousands of federal student loan debt and extend repayment breaks for next year.
A one-time maximum loan forgiveness of $10,000 for borrowers earning less than $125,000 would cost taxpayers about $300 billion, according to the Penn Wharton Budget Model.
If the program continues over a 10-year window, the cost jumps to about $330 billion, according to the figures.
The specifics of Biden's plan were kept in an unusually small circle within the Biden administration and had not yet been finalized on the eve of the announcement, sources told The Associated Press.
Progressives and liberals have hit out at the president for offering broad relief to hard-hit borrowers, while moderates and Republicans have questioned the justification for any broad forgiveness.
The nation's federal student debt now tops $1.6 trillion after years of ballooning. More than 43 million Americans have federal student loans, with nearly a third
Owing less than $10,000 and more than half owing less than $20,000, according to recent federal data.
On the campaign trail, Biden proposed waiving up to $10,000 per borrower, without mentioning an income cap.
But the president has scaled back that promise in recent months by embracing the income limit as rising inflation took a political toll and he aimed to fend off political attacks that repeal would benefit from higher take-home pay.