US President Joe Biden likely to announce $10,000 student loan forgiveness. Read details here

US President Joe Biden is expected to announce a student loan forgiveness of $10,000, as confirmed by media reports in the states. The highly-anticipated loan waiver programme will probably be announced on Wednesday, as per media reports. The expected waiver is valued at $300 billion, which will benefit thousands of students by waiving off their federal debt and extending repayment pause until the next fiscal year.

As per the available details, students who make less than $125,000 yearly income receive a forgiveness of a maximum of $10,000 on their student loan.

The cost of the waiver programme will extend to $330 billion if it allows a 10-year window for waivers. However, the exact details of the scheme have not been confirmed officially and are reportedly not finalised as of yet.


The POTUS Joe Biden has been under fire by the liberals for not providing relief to the borrowers hit hard by the pandemic and the consequent economic slump. On the other hand, the Republicans have questioned the fairness in the distribution of the waiver programme or other blanket forgiveness schemes.



The student federal debt in the United States stands at a staggering $1.6 trillion, soaring up for years. Over 43 million Americans, or every eighth American, owe a federal student debt, more than half of whom owe less than $20,000. As per reports, almost a third of the 43 million owe less than $10,000 as federal student debt.

The expected announcement comes days before the payment freeze due to the pandemic expiring on August 31.

During his presidential campaign, Joe Biden had promised to cancel student debts up to $10,000 per borrower. However, the US President took a U-turn of sorts when he embraced the income limit as the rising inflation started to land political blows.

Biden had claimed that the cancellation would benefit the high-income households, drawing ire from the liberal faction as well.