The Biden Administration is reportedly poised to cancel up to $10,000 in student loan debt for borrowers, and will extend the payment pause on federal loans until the end of the year.
According to the Washington Post, four people familiar with the matter said that borrowers making less than $125,000 per year, or $250,000 for married couples that file taxes jointly, would be eligible for the cancellation.
In addition, Pell Grant recipients will see up to $20,000 of their debt be cancelled.
The pandemic-era pause of federal student loan payments, which began during the Trump administration, will continue to be paused through December 31.
The student loan debt cancellation will affect roughly 43 million federal student loan borrowers, including 20 million who could have their debt completely cancelled, according to internal documents shared with the Washington Post.
Previous estimates have revealed that cancelling $10,000 in student loan debt per borrower could cost the government around $230 billion, though this estimate will now be higher considering the larger cancellation amount for Pell Grant recipients.
Biden is set to make an official announcement on the matter on Wednesday.
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