President Biden on Monday plans to announce a major effort to help tens of millions of American borrowers in Wisconsin pay off their student loans, giving an election-year boost by reviving a promise blocked by the Supreme Court last year. Trying to.
White House officials said Sunday that the president's plan would reduce the amount 23 million borrowers still owe on undergraduate and graduate school loans. That would wipe out the entire amount for more than 4 million Americans. It is estimated that 10 million borrowers will receive more than $5,000 in debt relief.
“Today's announcement shows that we continue to deliver on our promise,” Education Secretary Miguel Cardona told reporters Sunday night. “We will provide as much relief as possible to as many borrowers as possible, as quickly as possible.”
Biden is expected to announce the plan in a speech in Madison, Wisconsin, and other members of his administration have deployed to other cities to carry out similar efforts. Vice President Kamala Harris will appear in Philadelphia on Monday. Mr. Cardona was traveling to New York.
Biden was furious that the president's original plan, which was supposed to eliminate up to $20,000 in debt, would have eliminated tens of millions of dollars in debt if he succeeded in putting the new plan into action before the November election. It could help garner support among disillusioned voters. of the borrower.
But the president faces significant legal and timeline obstacles. The new plan will require a public comment period of several months before it takes effect. Officials said Sunday that only some of the provisions would begin taking effect in “early fall” of this year.
Officials also expect legal challenges from Republicans, which could take months to resolve. The plan could remain stalled as voters go to the polls to choose between Mr. Biden and former President Donald J. Trump in November.
Administration officials hope the president's supporters will praise his efforts. Since the Supreme Court blocked the initial effort, the White House has used existing regulations to forgive $138 billion in student loan debt for about 4 million borrowers.
Although the new plan is broader than those efforts, officials said it is more targeted than the original efforts and is based on different legislation, so it is likely to overcome expected difficulties. Ta.
“President Biden will use every tool at his disposal to cancel student loan debt for as many borrowers as possible, no matter how many Republican officials stand in his way,” White House press secretary Karine Jean-Pierre said in a statement. I intend to do so.''
The plan targets five groups of people with student loans, with varying levels of relief available.
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People whose loans grow beyond the amount they originally borrowed because of interest will have up to $20,000 of that interest wiped out and will only have to pay back the amount they originally borrowed. People with annual incomes of less than $120,000 or married couples with annual incomes of less than $240,000 are eligible for the entire interest fee to be waived. Officials said 23 million people are likely to have their interest-related balances completely forgiven under the provision.
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Roughly 2 million borrowers eligible for student loan forgiveness under existing programs have not applied for relief. Under the new rules, the Department of Education will be given the power to cancel these people's debts without having to apply.
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Anyone who took out federal student loans to earn a bachelor's degree and began repaying them more than 20 years ago will have their debt automatically canceled under the new system. Graduate students who borrowed money 25 years ago and started paying it back will have their debts cancelled. Officials said about 2.5 million people are eligible under the rule.
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People who borrow money to attend college and then lose their eligibility or eligibility for federal student aid programs will have their debt canceled. Officials have not said how many people will be affected.
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If you are particularly burdened with other expenses, such as large medical bills or child support, you may be able to apply for student loan forgiveness. Officials have not estimated how many people will be eligible for what they call “hardship” programs.
