President Joe Biden is expected to unveil revised plans to eliminate student debt and other measures that would benefit millions during a visit to Madison, Wisconsin, on Monday.
Biden’s new plans aim to eliminate runaway interest rates for millions of borrowers; Debt cancellation for those eligible for but not yet participating in certain forgiveness programs, such as civil servants who have paid their debts for 10 years or more; borrowers on undergraduate or graduate loans who began repaying loans at least 20 or 25 years ago, respectively; borrowers enrolled in low financing cost programs; and those facing difficulties that prevent them from making loan payments.
The administration’s new plans, combined with previous administration measures, would provide more than 30 million Americans with student debt relief, the White House said. The administration’s joint actions will eliminate accrued interest for 23 million borrowers, eliminate the full amount of student debt owed by more than four million borrowers, and provide at least $5,000 in debt relief for more than 10 million more.
The new plans mark the administration’s latest effort to offer relief to student loan borrowers The Supreme Court overturned Biden’s original plan up to $20,000 in debt cancellation for nearly 43 million eligible borrowers.
The plans are also part of the administration’s efforts to address the disproportionate burden of student debt faced by blacks, Latinos and other borrowers from vulnerable communities.
Vice President Kamala Harris will travel to Philadelphia, First Lady Doug Emhoff to Phoenix, and Education Secretary Miguel Cardona will visit New York to highlight the administration’s new plans and meet with borrowers benefiting from the administration’s actions. student debt relief.
During a press conference Sunday, Cardona said the revised plans for student debt relief are the result of a new rulemaking process designed to provide relief to borrowers under the Higher Education Act.
“And what does that really mean for people? It means breathing room. It means freedom from feeling like your student loan debt is competing with basic needs like food or health care,” she said.
“Now is the end of the nightmare of working hard, making loan payments and still watching your loan balances grow month after month,” he said.
Senate Majority Leader Chuck Schumer, D-N.Y., praised the administration’s new actions in a statement, saying it showed Biden was “heeding the call of Congress” to get as much student debt relief as possible.
“After the MAGA Supreme Court struck down the largest-ever student loan forgiveness program last year and took away the financial lifeline of those who need it most, this new action by President Biden shows that Democrats are committed to fixing the Federal student loan program. Higher education is finally the ticket to the middle class for everyone.” can be”.
Frank Thorpe W contributed.