President Biden will announce a new plan to cancel student loan debt for more than 30 million Americans.
According to a document from the White House, Biden's plan includes:
Removing accrued and capitalized interest for millions of borrowers.
More than 25 million borrowers owe more than they originally borrowed, including many who have made years of payments, due to the interest that accrues on Federal student loans. President Biden will announce plans to cancel up to $20,000 of the amount a borrower's balance has grown due to unpaid interest on their loans after entering repayment, regardless of their income.
Automatically forgiving debt for borrowers who are eligible for loan forgiveness under SAVE, closed school discharge, or other forgiveness programs, but are not enrolled.
Eliminating student debt for borrowers who have been in repayment for 20 years or more.
More than 2 million borrowers have been repaying their student loans for two decades or longer and still carry debt from these old loans. The Administration's new proposals would waive student debt for borrowers with only undergraduate debt who would qualify for forgiveness if they first entered repayment at least 20 years ago (on or before July 1, 2005), and borrowers with any graduate school debt would qualify if they first entered repayment 25 years ago or more (on or before July 1, 2000).
Assisting borrowers who enrolled in low-value financial programs or institutions.
The Administration has worked aggressively to hold colleges accountable when they leave students with large amounts of debt and without good job opportunities. The Administration is proposing to waive loans from borrowers who took on debt to enroll in institutions or programs that lost their eligibility to participate in the Federal student aid program or were denied recertification because they cheated or exploited students.
Helping borrowers who are having difficulty paying back their loans.
While these proposed plans and executive actions to date would help tens of millions of borrowers, there are many other borrowers whose student loans continue to be a barrier for them participating in the economy, accessing economic mobility, or pursuing their dreams. The Administration will also pursue a specific action that is dedicated to canceling student debt for borrowers experiencing hardship in their daily lives that prevent them from fully paying back their loans now or in the future. canceling student debt for borrowers experiencing hardship in their daily lives that prevent them from fully paying back their loans now or in the future.
To date, the Biden administration has canceled $146 billion in student loan debt for 4 million Americans, and the administration has bigger plans as they committed to fixing the broken student loan system.
Sec. of Education Michael Cardona told PoliticusUSA during a call with reporters, “President Biden often says the one word that describes America is possibility. When I think about all the possibility and all the potential we can unlock when young people see that they can afford and access higher education. I think this work is nothing short of transformative. That’s why we’re unapologetic about this fight. Student loan forgiveness isn’t only about relief for today’s borrowers. It’s about social mobility, economic prosperity and creating an America that lives up to his highest ideals. ”
Donald Trump has already said he wants to stop all forgiveness of student loans and cancellation of debt if he comes back to the White House.
The president shows the values and priorities of the person in the position.
Biden has put focus on making it a top priority to relieve millions of Americans from the burden of student loan debt.
Donald Trump’s main focus is on reducing taxes for billionaires.
The 2024 election isn't about two equal candidates or choosing the lesser of two evils. It's about choosing between a man who wants to use the presidency to help others or a man who only wants to help himself.
