Nearly four million Americans could have their student loan debt eliminated, while another 10 million could experience partial relief under a new forgiveness program, the Biden administration announced on Monday.
This is the president's latest attempt to advance his signature debt relief program after the Supreme Court struck down his initial sweeping reform that would've erased $430 billion in debt for millions of Americans.
Under the new plan, up to $20,000 in interest will be eliminated for anyone repaying their loans, regardless of income. The administration estimates that this will erase the entirety of more than 23 million people's accrued interest.
There are also several categories of individuals who will see additional relief, including people experiencing financial hardship, people whose current balance exceeds their initial loan, individuals who have been repaying their loans for at least two decades and borrowers who have expensive degrees with limited job prospects.
"We're delivering as much relief as possible for as many borrowers as possible, as quickly as possible," said U.S. Secretary of Education Miguel Cardona, according to Reuters. "It means freedom from feeling like your student loan bills compete with basic needs, like groceries or healthcare."
Biden is expected to discuss the debt forgiveness program during a campaign stop in Wisconsin, which is expected to be a crucial swing state this year. If the plan successfully advances through a public comment period, it could go into effect this autumn - in time for the November election.
Student loan relief is particularly popular among younger, progressive voters - a demographic that has been particularly critical of the president's handling of the war in Gaza.
