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President Joe Biden is expected to announce a much-anticipated loan forgiveness program Wednesday, sources familiar with the plan told the Associated Press.
Americans are poised to foot a nearly $300 billion deal with President Biden’s expected announcement on Wednesday to forgive thousands in federal student loan debt and extend a repayment pause to next year.
According to the Penn Wharton Budget Model, a one-time maximum debt forgiveness of $10,000 for borrowers who make less than $125,000 – which President Biden is expected to announce Wednesday – will cost around $300 billion for taxpayers.
President Joe Biden holds a press conference. (Fox News )
STUDENT LOAN CANCELLATION COULD COST $900B AND FAVOR TOP EARNERS, ANALYSIS SHOWS
The cost increases to around $330 billion if the program is continued over the standard-10-year window, according to the figures.
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The precise details of Biden’s plan were being kept to an unusually small circle within the Biden administration and were still not finalized on the eve of the announcement, sources told The Associated Press.
The Associated Press contributed to this report.
