President Biden Plans to Provide Student Loan Debt Relief

President Biden announced on Monday a plan to provide significant relief to over 30 million borrowers burdened by student loan debt, aiming to fulfill a campaign promise and potentially appeal to younger voters.

Biden unveiled the proposal at Madison Area Technical College, marking his third Wisconsin visit this year and 10th since becoming president. The initiative is an expansion of federal student loan relief through the Higher Education Act, designed to address the soaring costs of higher education.

Unlike a previous proposal that faced legal challenges, this plan targets specific groups of borrowers, aiming to cancel some or all federal student loans for millions of Americans.

The plan's includes:
•Canceling up to $20,000 in interest for borrowers whose balances have inflated due to accrued interest, benefiting around 25 million borrowers.
•An additional 2 million borrowers would have their loans automatically canceled if eligible but have not applied for other forgiveness programs.
•Borrowers repaying undergraduate loans for at least 20 years or graduate school loans for 25 years.
•Students enrolled in programs with low financial value or affected by institutional misconduct.
•Borrowers facing financial hardship.