You have /5 articles left.
Sign up for a free account or log in.
More than 26 million Americans would benefit from the Biden administration’s latest plan to provide debt relief for student loan borrowers, the Education Department said Monday.
Under the plan, which was first detailed last fall and refined over the course of multiple public meetings, borrowers would see some form of relief if they fall into one of five categories—including those who owe more than they initially borrowed as the result of accruing interest and those who have been repaying loans for more than 20 years. Over all, 23 million borrowers would see their accrued interest eliminated, while 4 million would see their balances wiped out and more than 10 million borrowers would get at least $5,000 in relief.
President Biden, Vice President Harris and Second Gentleman Douglas Emhoff are traveling Monday to swing states to tout the plan, while Education Secretary Miguel Cardona will meet with borrowers in New York City.
Earlier in his term, Biden sought to forgive up to $20,000 for eligible borrowers—a plan that would have benefited about 43 million Americans, but was struck down by the Supreme Court in June 2023. The latest effort is sure to face legal challenges as well, but the administration is basing its authority on a different law that it expects to pass legal muster. It will also use a different process to create the regulations that will allow for the relief.
Before the plan can be finalized and carried out, the Education Department will open up the proposed regulations for public comment and then review and respond to those comments. The comment period will likely take at least 30 days. The regulations aren’t posted on the Federal Register yet, so the clock hasn’t started to tick.
“These historic steps reflect President Biden’s determination that we cannot allow student debt to leave students worse off than before they went to college,” Education Under Secretary James Kvaal said in a news release. “The President directed us to complete these programs as quickly as possible, and we are going to do just that.”
