© Reuters. FILE PHOTO: Marchers protesting high student loan burdens prepare to take part in the annual July 4th march in Ashland, Oregon, U.S., July 4, 2015. REUTERS/Randall Mikkelsen
WASHINGTON (Reuters) – U.S. President Joe Biden’s administration plans to cancel $10,000 of student debt per borrower, the Washington Post reported on Friday, citing three people familiar with the matter.
The White House plan would apply to Americans who earned less than $150,000 in the previous year, or Americans who jointly reported income of less than $300,000, two people familiar with the matter told The Washington Post.
The current government’s moratorium on student interest and payments is due at the end of August. It is unclear whether the government plans to resume payment requirements at that time.
Unnamed sources told the paper that details could change.
Biden had hoped to make the announcement this weekend at the University of Delaware’s commencement ceremony, but those plans changed after Tuesday’s massacre of Texas elementary school students, people familiar with the matter told The Washington Post.
Cancelling student debt has become a priority for many liberals and could boost support among young and highly educated voters, who lean Democrats, ahead of the crucial midterm elections in November.
But the Biden administration has been reluctant to unilaterally cancel university debt owned by the U.S. government in an unprecedented move, a move that would test his legal authority.