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Biden to unveil long-awaited student debt relief on Wednesday

(Bloomberg) — The White House plans to release its long-awaited announcement on student debt relief on Wednesday, according to people familiar with the matter.

was unclear and is closely guarded by the White House, which did not immediately respond to a request for comment. President Joe Biden’s decision has long been expected as he struggles to provide targeted relief while weighing any consequences, including to inflation that is already rampant.

Advocates and allies expect Biden to suspend student loan repayments for at least another four months through December 2022, while also announcing a move on debt relief for borrowers some measures. Income is below a certain threshold. That will freeze after the midterm elections, in which Democrats hope to avoid losing their narrow House and Senate majorities.

For months, Democratic lawmakers, labor leaders and civil rights groups have been pressuring the White House for forgiveness of more than 10 dollars, 000 In student debt, black or low-income students are considered disproportionately higher debt burdens.

READ MORE: Biden’s slow pace on student loans means increased pressure

During 2020 presidential campaign, Biden himself urged Congress to forgive $,000 student debt, and seemed happy with that figure .

A former top Democratic official has warned about the inflationary impact of the broader move. Former Treasury Secretary Larry Summers warned that this would drive prices higher, saying the “worst idea” was to extend the moratorium on payments.

Forgiving student loan debt will cost 31 $1 billion to 980 $1 billion+ 31 years, depending on the scope, an analysis released Tuesday found that the bulk of the relief went to the top 60 percent of borrowers.

The Biden administration has cancelled 32 $1 billion in total debt, including relief for agencies with predatory or misleading practices. The current payment hold expires at the end of this month.

“From day one, we’ve been focused on making sure we protect students and borrowers,” Education Secretary Miguel Cardona told NBC’s “With media meeting”. “We know August 31st is the date that many people are waiting to hear. We talk about this every day. I can tell you that the American people will be in the next week or so Hear from the President.”

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