Exciting news for millions of Americans struggling with student loans: the Biden administration just unveiled plans for a new student loan debt forgiveness program. If everything goes smoothly, people could start seeing relief as early as this fall. This is Biden's second shot at implementing broad student loan forgiveness after his first attempt was shot down by the Supreme Court last summer. To announce this game-changing plan, President Biden is heading to Wisconsin, a crucial swing state, on Monday.
According to the White House, these new proposals could benefit over 30 million Americans, which is nearly 70% of all federal student loan borrowers. This could mean reduced or completely canceled debt for a huge chunk of the population. However, the plans are not set in stone yet and could face legal challenges along the way. But Biden seems determined, with the White House saying he'll use every available tool to push through this relief, no matter the opposition.
Unlike his previous plan, which aimed to cancel up to $20,000 in student loan debt for certain earners, these new proposals target specific groups. For example, those with balances higher than their initial loan amount due to interest, or people who have been in repayment for at least 20 years, could qualify. The goal is to help those who are in financial hardship or have been stuck in programs that didn't lead to good job prospects.
The process isn't going to be immediate, though. After the proposals are finalized, there will be a public comment period. Then, the Department of Education will review the comments and publish a final version of the rule. If all goes well, parts of the plan could start rolling out this fall, including canceling accrued interest for qualifying borrowers.
Despite the Supreme Court setback, Biden's administration has already canceled more student loan debt than any other president, mostly through existing programs. They've made it easier for specific groups, like public-sector workers, disabled borrowers, and those defrauded by for-profit colleges, to qualify for loan forgiveness. So far, 4 million people have benefited from this, totaling a whopping $146 billion in canceled debt.
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