President Biden will be announcing a new plan that will cancel student loan debt for more than 30 million Americans.
According to a White House fact sheet, Biden’s plan includes:
Waiving 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 discharging debt for borrowers otherwise eligible for loan forgiveness under SAVE, closed school discharge, or other forgiveness programs, but not enrolled
Eliminating student debt for borrowers in repayment for 20 years or more
More than 2 million borrowers have been repaying had 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 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 or more years ago (on or before July 1, 2000).
Helping borrowers who enrolled in low-financial-value programs or institutions
The Administration has worked aggressively to hold colleges accountable when they leave students with mountains of debt and without good job prospects. 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 took advantage of students.
Assist borrowers experiencing hardship 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.
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 stated that he plans to end all student loan forgiveness and debt cancelation if he returns to the White House.
The presidency is a reflection of the values and priorities of the person holding the office.
Biden has made removing the burden of student loan debt off the shoulders of millions of Americans one of his main priorities.
Donald Trump’s priority is cutting taxes for billionaires.
The 2024 election is not a choice between equal candidate or the lesser of two evils. The election is a choice between a man who wants to use the presidency to help others or a man who only wants to help himself.
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