Pres. Biden Announces New Student Debt Plan

April 9, 2024

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.

President Joe Biden on Monday introducing a new student loan forgiveness proposal that focuses on accrued interest and is limited to specific groups of borrowers. The announcement was made in Wisconsin, an important swing state.

Why It Matters: The proposed plan applies to specific groups of borrowers, such as those who owe more than they initially borrowed, or who have started repayment more than 20 years ago, or who have experienced some financial hardship. According to the administration, the proposal (combined with prior actions taken by the Biden administration) would provide “student debt relief” to more than 30 million Americans.

Important Context: The new plan (which is not yet final and will likely face legal challenges) comes less than a year after the U.S. Supreme Court ruled against another Biden loan forgiveness program in June, finding the administration overstepped its authority when it attempted to cancel up to $20,000 in debt for up to 43 million eligible borrowers. 

Read More: FACT SHEET: President Biden Announces New Plans that would Provide Relief to Borrowers Disproportionately Burdened by Student Loan Debt (White House)

Biden announces new plans to provide student debt relief for millions (NBC News)

by Emily Hooker, based in Texas