President Biden is likely to decide later this summer whether to partially forgive student-loan debt for millions of borrowers, according to administration officials and others familiar with the matter, after the president said more than a month ago that he would weigh in on the issue in the next couple of weeks, the Wall Street Journal reported. The officials said Mr. Biden is likely to announce his plans in July or August, closer to when the pandemic-related pause in federal student loan payments is scheduled to lapse, as the president and his senior advisers continue to weigh the political and economic fallout of any such move. The Biden administration earlier this year extended the pause, which has been in effect since March 2020, until Sept. 1. The delay means the roughly 40 million people who owe about $1.6 trillion in federal student debt may have to wait to find out whether they may see all or part of their loans erased. The White House declined to comment on the internal discussions. “The administration is continuing to assess options for cancellation and no decision has been made,” a White House official said. Mr. Biden has long been skeptical of using his executive authority to wipe away student loan debt. Officials said he remains concerned about the possible effects the move could have on record inflation, cautious about doing anything that could be perceived as contributing to high prices. Some people close to Mr. Biden said he had nonetheless warmed to the idea in recent months as advocates inside and outside the administration made impassioned pleas for him to take action.
