President Joe Biden is set to announce Wednesday that he will forgive $10,000 in student loan debt

The president is expected to reveal his long-awaited decision after he returns to the White House from vacation in Rehoboth Beach, Delaware

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The action is also expected to include extending until January a pause on federal student loan payments

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The president has said he would make a decision by Aug. 31

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Biden faces increasing pressure from progressive Democrats to cancel an even larger share of debt for Americans who took federal loans to pay for college

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But some Democratic economists, including former Treasury Secretary Larry Summers, worry about the risk of debt cancelation exacerbating 40-year-high inflation

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The debt cancellation would be limited to borrowers with family incomes of $125,000 or less

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More than 43 million people have federal student loan debt in the U.S., and the average borrower has about $37,000

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The outstanding federal loan balance is about $1.6 trillion

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Canceling potentially up to $10,000 in student loan debt would mean billions more collectively staying in the pockets of Americans

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