President Joe Biden on Monday announced revised plans to cancel federal student debt that along with other actions would benefit millions during a visit to Madison, Wisconsin.
Biden’s new plans are aimed at canceling runaway interest for millions of borrowers; nullifying debt for those who are eligible for but not yet participating in certain forgiveness programs, such as those in public service who've been paying off their loans for 10 years or more; borrowers of undergraduate or graduate loans who started paying off loans at least 20 or 25 years ago, respectively; borrowers enrolled in low financial value programs; and those experiencing hardships that prevent them from making loan payments.
"This relief can be life-changing," Biden said in remarks in Wisconsin. "Folks, I will never stop to deliver student debt relief on hard-working Americans, and it's only in the interest of America that we do it. And again, it's for the good of our economy that's growing stronger and stronger — and it is. By freeing millions of Americans from this crushing debt ... it means they can finally get on with their lives, instead of their lives being put on hold."The administration’s new plans, in combination with previous actions it has taken, would provide student debt relief to more than 30 million Americans, the White House said. The administration's actions, taken together, will eliminate accrued interest for 23 million borrowers, cancel the full amount of student debt for more than 4 million borrowers, and provide at least $5,000 in debt relief to more than 10 million others.
The new plans are the administration’s latest efforts to provide relief to borrowers of federal student loans after the Supreme Court struck down Biden’s original plan to cancel up to $20,000 in debt for about 43 million eligible borrowers.
Biden acknowledged the high court's ruling and the opposition from Republicans in his remarks Monday, saying they forced his administration "to find alternative paths to reduce student debt."
The new plans are also part of the administration's efforts to address the disproportionate burden of student debt that Black, Latino and other borrowers from vulnerable communities face.
Vice President Kamala Harris was traveling to Philadelphia, second gentleman Doug Emhoff to Phoenix and Education Secretary Miguel Cardona to New York City to highlight the administration's new plans and meet with borrowers who have benefited from the actions it has taken on student debt relief.During a press call Sunday, Cardona said the revised plans for student debt relief are the result of a new rule-making process designed to provide borrowers with relief 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 bills compete with basic needs like grocery or health care,” he said.
"Now there’s an end to the nightmare of working hard, making loan payments, and still watching your loan balances get bigger and bigger, month after month," he said.
Senate Majority Leader Chuck Schumer, D-N.Y., praised the administration’s new actions in a statement, saying that it shows Biden is “heeding Congress’ call” to provide as much student debt relief as possible.
“After the MAGA Supreme Court struck down the most far-reaching student loan debt forgiveness last year and ripped away a financial lifeline from those who need it most, this new action by President Biden shows Democrats are committed fixing the Federal student loan program so that higher education can finally be a ticket to the middle class for everyone,” he said.
