The federal Education Department has developed detailed plans to cancel student loan debt for millions of Americans if President Joe Biden gives his approval, according to a report from Politico.
The Biden administration has been deliberating how to cancel student loan debt for months. Most recently, Biden has said he plans to make a decision on the matter by the end of August. That’s also when the current pause on federal student loan payments is set to end.
Documents obtained by Politico detail the mechanics of how the Education Department expects to manage and operate a mass debt cancellation program that would be unprecedented, the website said.
Officials are ready to provide debt relief automatically to millions of borrowers for whom the agency already has income information, Politico said. Others would apply through an online form to certify they qualify for relief.
The department’s plan says all types of federal student loans would be eligible for forgiveness, including Grad and Parent PLUS loans as well as federal loans owned by private entities, according to Politico. Plans also suggest borrowers who received Pell grants could receive additional forgiveness.
The Biden administration is considering providing $10,000 in relief per borrower, Politico said.
The department’s documents do not include any final decisions on how a relief program would be structured. There are no details on a final amount of relief or income limits to the potential program, according to Politico.
Officials are considering limiting forgiveness to borrowers earning below a certain income level, but no amounts have been finalized, Politico said. An internal department presentation cited $125,000 for individuals and $250,000 for families as examples of possible thresholds.
You can read more on the department’s plans on Politico’s website.