Biden Unveils Sweeping Student Debt Relief Plan, Aims To Aid Over 30 Million Americans

President Biden is gearing up to unveil a fresh wave of initiatives aimed at alleviating student debt burdens, potentially benefiting over 30 million Americans, reports the White House.

Set to make the announcement during his speech in Madison, Wisconsin on Monday afternoon, the President's plans aim to automatically cancel debt for the majority of affected individuals, including those with exorbitant interest, attendees of underperforming programs, and borrowers facing financial hardship.

This marks the second phase of President Biden's efforts to tackle student debt, a central promise during his 2020 campaign, ABC news reported. Despite a setback in the Supreme Court last June, where the administration's previous $400 billion loan forgiveness program was struck down, the President remains committed to easing the financial strain for millions of Americans.

Under the latest proposals, approximately 25 million borrowers could see relief from accrued interest, with around 23 million having their balance growth entirely eliminated. An additional two million borrowers are expected to benefit from existing forgiveness programs, while another two million with loans dating back over two decades may also receive assistance. Furthermore, more than 10 million borrowers with significant debt could see relief of at least $5,000, Washington Post reported.

Education Secretary Miguel Cardona has been empowered to expedite the implementation of these plans, emphasizing their broader societal benefits beyond immediate relief.

Despite concerns over inflation, administration officials remain optimistic about the economic impact, anticipating improved economic mobility for families.

However, the official rollout of these plans is not expected until early fall, pending public feedback. The administration asserts that these new initiatives operate under distinct legal authority and are tailored to specific borrower circumstances, distinguishing them from previous proposals.

In the midst of these developments, a coalition of Republican-led states has filed a lawsuit against President Biden, Secretary Cardona, and the Department of Education, challenging the implementation of a recent student debt repayment plan.