Biden Keeps Buying Votes With Another Plan To Erase Student Debt

Election Year Student Loan Erasure

FILE - Students demonstrates about student loan debt outside the Supreme Court, June 30, 2023, in Washington. Biden is traveling to Wisconsin Monday, April 8 2024, to announce details of a new plan to help millions of people with their student loan debt. Last year, the U.S. Supreme Court foiled Biden's plan to provide hundreds of billions of dollars in student loan debt relief to millions. (AP Photo/Jacquelyn Martin, File)

The Biden administration unveiled a new set of plans on Monday that would eliminate student debt for millions of Americans. The administration says that, if fully implemented, it would bring the number of borrowers who’ve seen some or all of their debt forgiven during the president’s term to more than 30 million.

The new plan, aiming to supplant an earlier version that was rejected by the U.S. Supreme Court in June, offers targeted relief to specific groups of borrowers, notably those who’ve carried debt for many years, and those struggling to make payments. And many borrowers, regardless of income, could see relief from high interest balances.

The announcement spelled out efforts aimed at four groups of borrowers: those who owe more money than they did at the start of their repayment, borrowers who started paying more than 20 years ago, those already eligible for existing loan forgiveness or discharge programs but haven’t yet applied, and borrowers facing economic hardship.

More than 25 million borrowers, the administration said, owe more in student loans now than they took out originally, due to what Cardona called “runaway interest.” The first element of the new plan would allow any borrower, regardless of their income, to cancel up to $20,000 in interest.

In addition, low and middle-income borrowers who are enrolled in an income-driven repayment plan would have all of their interest forgiven. This group of borrowers includes single borrowers earning $120,000 or less a year, and married borrowers who make $240,000.

If the plans go through as proposed, there would be no application necessary.

Click here for the report from NPR


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