Biden to Forgive Up to $20,000 in Student Debt

President Joe Biden is poised to announce a sweeping package of student debt relief, forgiving $10,000 in debt for borrowers who earn less than $125,000 per year and $20,000 in debt for Pell grant recipients, according to people familiar with the matter.

The president, who is expected to unveil the plan Wednesday, will also extend the moratorium on repaying student-loan debt for four months through Dec. 31, people familiar with the issues said.

It would be the final pause that Biden backs, according to a person familiar with the matter. White House spokespeople did not immediately respond to a request for comment.

It’s the seventh extension of the freeze since the Covid-19 pandemic began in March 2020, and would take the pause beyond the November midterm elections, in which Democrats are hoping to stave off a loss of their slim House and Senate majorities.

The latest pause in loan repayments is set to expire Aug. 31. Support from young voters could help boost Democrats’ showing.