White House officials are considering canceling up to $10,000 in student loan debt per borrower, with an announcement expected to be made Wednesday, August 24.

The Biden Administration is also leaning toward a final short-term extension of the freeze on federal loan repayments that's been in place since 2020. Student loan experts told 21 News this is a never before seen move to relieve student loans.

"I wouldn't say it's unprecedented, but to forgive this amount of student loan debt is certainly a welcome sight for individuals who have struggled with this for years and years," said Victor Russell, Operations Manager with Apprisen.

From canceling $10,000 in federal student loans per borrower to extending the federal moratorium, President Biden is expected to announce drastic benefits for the 45 million Americans struggling with student loan debt.

"And whatever future interest that would have accrued off of that $10,000 is also not going to come out of their pocket," said Betsy Mayotte, Founder & President of The Institute of Student Loan Advisers. "In the long run, it will save them at least $10,000, if not more. This represents about 1/3 of the total federal student loan debt that's out there. I've been working in the student loan industry, and compliance or advocacy aspect since the earth was round and have never seen anything even remotely like this."

Biden's Administration already canceled about $32 billion in debt for millions of Americans-- that's more than any Administration in history.

Russell added the possible $10,000 student loan reduction could drastically benefit those affected because they can spend it on other things. Adding, the state of this nation's inflation will drastically benefit the nation's economy.

"We need that consumer spending in this economy," Russell said. "Plus, it helps young individuals move forward with their lives and achieve their life goals of home ownership and purchasing an automobile."

"I've seen that this would be great for the economy," Mayotte explained. "I've seen that it's not going to make a darn bit a difference in the economy. From an inflation perspective, the general consensus seems to be that this isn't enough to make any sort of drastic change to the inflation situation we're in either direction."

"It could be a minute before we get all the gory details," Mayotte said. 

While the details of the debt forgiveness are not all unveiled, Russell and Mayotte believe the $10,000 would not be taxable, and he doesn't expect any loopholes.

"I do not expect it to be taxed, at least at the federal level," Mayotte told 21 News. "Last year, the year before, they actually put a pause on the taxability of student loan forgiveness until 2026. I don't expect any federal taxation. There may be a few states that might have a law in place that might tax this forgiveness."

"It's a welcomed addition to all the tools the government has to help individuals get through a difficult period of time," Russell said. 

Mayotte hopes the student loan reduction details are simplified to a tiered income basis and do not exclude any type of federal student loan borrowers, such as Parent Plus loans or borrowers with graduate loans. 

"I hope the process is as automatic as it possibly can be," Mayotte added. Mayotte explained she doubts Wednesday's announcement will come with any clarification for those who recently paid off their student loans. 

21 News asked Russell if individuals heading into college should purposely take out student loans even if they're not financially struggling, and he said it would not be worth taking the risk because there is a chance the country may not see this assistance on a regular basis. 

"I wouldn't hang my hat on that," Russell said. "It's happening now for a specific reason but moving forward; I wouldn't say this will happen again. You have to be prudent on how much you're going to borrow for college."

Youngstown State's Director of Financial Aid and Scholarships, Patrick Hoffman, said, "This is especially useful to students who had to stop courses because they were out of student loan eligibility. This opportunity sounds advantageous and could be good news for students if they qualify."

Mayotte added the public should also pay attention to several other financial assistance programs offered by the Biden Administration, including Public Service Loan Forgiveness (PSLF) Program, Fresh Start Program, and several Medicaid Income Plan waivers. 

Russell added the Save the Dream Ohio program also offers substantial assistance for homeowners. 

For our full interview with Mayotte, visit our podcast tab. 

Stay up to date with us on our 21 News App Wednesday as these details are announced.