According to several people familiar with the plan, the White House is planning to announce a student loan relief plan as early as Wednesday that would forgive up to $10,000 for some borrowers and extend the current loan repayment freeze.
According to the people, the details of the highly anticipated plan are still in flux due to a frantic, last-minute internal debate over how to structure the policy. The White House has focused on cancelling $10,000 in student debt for borrowers earning $125,000 or less per year, which would completely eliminate student debt for millions of Americans.
Several people familiar with the administration’s deliberations stressed that President Joe Biden had not made a final decision on key components of the debt relief programme by late Tuesday evening. The president is set to return to the White House from his vacation home in Rehoboth Beach, Del., on Wednesday.
According to a Democrat familiar with the conversation, Senate Majority Leader Chuck Schumer urged Biden to provide as much relief to borrowers as possible during a phone call with the president on Tuesday evening.
In his final pitch, Schumer told Biden that cancelling debt is “the right thing to do morally and economically.”
came after a meeting between senior White House officials, including Chief of Staff Ron Klain, and Schumer, as well as Sens. Elizabeth Warren (D-Mass.) and Raphael Warnock (D-Ga.), who have been leading the effort to persuade Biden to cancel student loan debt since he took office.