Biden announces student loan relief for borrowers making less than $125,000 after months of intense internal debate

President Joe Biden announced  his plan for forgiving student debt for some borrowers Wednesday, which  includes forgiving $10,000 for borrowers who make less than $125,000 per  year and extending the payment freeze one final time until the end of  the year.

In  a tweet Wednesday morning, Biden said the amount of forgiveness will be  higher for low-income borrowers who went to college on Pell Grants.  Those who went to college on Pell Grants will receive $20,000 in student  loan forgiveness. Biden added that those with undergraduate federal loans can also cap their payment at 5% of their monthly income.

The President will speak at 2:15 p.m. ET to formally announce the plan. "In  keeping with my campaign promise, my Administration is announcing a  plan to give working and middle class families breathing room as they  prepare to resume federal student loan payments in January 2023," Biden  said.

Biden has been facing political pressure from the left to broadly cancel student loan debt since taking office. Key Democratic lawmakers, including Senate Majority Leader Chuck Schumer and Massachusetts Sen. Elizabeth Warren, have called on Biden to cancel $50,000 per borrower. The President spoke with Schumer, Warren and Democratic Sen.

Raphael Warnock of Georgia on Tuesday ahead of the expected announcement. Biden has consistently pushed back on canceling that much, suggesting he would support wiping away $10,000 for borrowers below a certain income threshold.

On the campaign trail, Biden called for immediately canceling a minimum  of $10,000 in student debt per person as a response to the pandemic, as  well as forgiving all undergraduate tuition-related federal student debt  from two- and four-year public colleges and universities for those  borrowers earning up to $125,000 a year. But he had also said he  preferred Congress to take action rather than using executive power to  do so.