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Why could a lot of people with student loan debt soon get a break?

A reported plan is expected to be released soon to forgive $10,000

HOUSTON — According to reports, the White House is expected to announce a plan soon to cancel some student loan debt.

According to The Washington Post, President Biden’s plan would forgive $10,000 in federal student loan debt for Americans earning less than $150,000 a year or $300,000 for married couples.

According to the Post, that would settle the balances of around a third of borrowers, while cutting debt in half for another 20 percent.

Advocates who have been fighting for the cancellation of student loan debt have expressed anger over the plan, according to CNBC.  

Activists say the president needs to cancel at least $50,000 of debt per borrower to make a real dent. They cite research that shows the average student debt is over $30,000 with more than three million borrowers owing more than $100,000.

But even the reported plan of cancelling $10,000 in debt is not set in stone. The Washington Posts reports more changes could be made before the official announcement.  

No matter the details, any debt cancellation could face heavy criticism from Republican lawmakers. In the past they have said student loan forgiveness benefits higher earners while punishing lower income individuals.

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