President Biden is again announcing a new student debt relief plan that, if approved, will benefit over 30 million Americans.
If approved, its new plan will forgive up to $20,000 in unpaid interest on federal student loans for all borrowers, regardless of income. It may also cancel all interest accrued since borrowers started repaying for low- and middle-income earners.
The plan is expected to provide relief for specific borrower groups, including those facing negative amortization, borrowers with loans over two decades old, and individuals unable to repay due to hardship.
As of 2021, the Biden administration has approved more than $143 billion in student loan forgiveness.
So far, the administration has approved the following:
- $45.6 billion forgiven in student loans for over 900,000 borrowers through adjustments to income-driven repayment plans and other initiatives.
- $62.5 billion in loan forgiveness for more than 870,000 borrowers through fixes to Public Service Loan Forgiveness.
- More than 1.2 million borrowers have been granted over $22.5 billion in debt relief as a result of harmful practices or actions by their schools, such as misrepresentations, fraud, or closure.
- Almost $12 billion forgiven for 500,000 borrowers with disabling medical conditions.
Officials hope Biden’s new loan forgiveness plan, established under a different legal authority allowing the Education Department to cancel student debt, will prove more successful.
