Millions of Americans were waiting to learn the fate of their federal student
debt on Wednesday as President Joe Biden prepared to deliver on his campaign
promise to provide up to $10,000 in debt cancellation.
Details of the plan have been kept closely guarded, but borrowers who earn less than $125,000
a year would be eligible for the loan forgiveness, according to three people familiar with the decision.
Biden is also set to extend a pause on federal student loan payments through January.
If it survives legal challenges that are almost certain to come, Biden’s plan
could offer a windfall to a swath of the nation in the run-up to this fall's midterm elections.
More than 43 million owe a combined $1.6 trillion in federal student debt
with almost a third owing less than $10,000, according to federal data.