The Biden administration is expected to announce student loan forgiveness on wednesday.

But doing this may have a serious impact on US economy, according to some experts.

Biden pledged during his presidential election campaign to forgive federal government student loan.

The pressure to act on his pledge has been mounting on him by students protesters and some democrats.

Biden is expected to announce up to $10,000 of debt forgiveness.

According to the Associated Press, borrowers who earn less than $125,000 a year would be eligible for the loan forgiveness.

Biden is also set to extend a pause on federal student loan payments through January.

According to data from the Education Department more than 43 million Americans owe a combined $1.6 trillion in student debt 

held by the federal government which also includes more than 7 million borrowers who have defaulted on student loans.

If Biden does any sort of debt cancellation or forgiveness he will improve his approval rating.