The long anticipate move is expected to be accompanied by an extension until January of the federal student loan payment pause, which has been in place since March 2020 and was set to expire 31 August 2022.
According to recent federal data, roughly 43 million Americans hold federal student loan debt to the tune of $1.6 trillion.
At the onset of the coronavirus pandemic, then-President Donald Trump paused student loan payments, set interest rates at zero percent and stopped collection attempts on overdue debts.
Biden's latest plans mean forgiving billions more in student loan debt for millions of borrowers, eclipsing the administration’s past actions.
A final extension of the federal loan repayment freeze and more relief for low-income borrowers, according to two people familiar with the matter.
The pandemic-era freeze on repayments is scheduled to end on August 31 and will now be extended until December 31.
President Biden faces increasing pressure from progressive Democrats to cancel an even larger share of debt for Americans who took federal loans to pay for college.
President Biden announced on Wednesday that he would cancel $10,000 in student loan debt for Americans earning less than $125,000 per year.
Canceling potentially up to $10,000 in student loan debt would mean billions more collectively staying in the pockets of Americans.