President Joe Biden is set to announce new plans to make it easier for people to pay off their student loans, which could help around 23 million Americans.
The proposals, which will be detailed in Madison, Wisconsin, include canceling up to $20,000 in interest that has built up on loans, no matter how much money borrowers make. This move is expected to wipe out all interest for these 23 million borrowers.
The Biden administration is responding to calls from progressive voters who have long wanted the government to do more about student loan debt. They know this issue is important to younger voters, especially with elections coming up.
The plans also aim to automatically cancel debt for different groups of borrowers, like those who qualify for forgiveness programs or are having money problems.
If everything goes ahead after people get to give their opinions, the changes could start as soon as fall, giving relief to millions of Americans who owe money for their education.
Education Secretary Miguel Cardona says it’s crucial to ease the financial burden of student loans because it affects how well borrowers can live their lives.
Biden talks to the media outside the White House (Via Nipsey Lamar/Shutterstock)
With these new steps added to previous ones, the Biden administration hopes to help more than 30 million Americans who are having trouble paying off their student loans.
Even though there have been setbacks, like the Supreme Court saying no to a bigger plan to cancel debts, Biden still wants to deal with this problem and help borrowers.
The administration is being careful about laws and policies as they work out the best ways to help. As of June 2023, there were about 43.4 million people with student loans, and they owed $1.63 trillion altogether. That shows how big the problem is.
During the day, different officials from the administration, including Vice President Kamala Harris, will travel around the country to talk about these new plans. This shows they’re working together to deal with the problem of student loan debt.
