President Biden's new plan will forgive up to $20,000 in student loans for many borrowers, including those who owe more than they originally borrowed, low-income earners, and those who have not successfully applied for other relief programs. The plan also cancels loans for borrowers whose degrees are from "low-value" institutions or who are experiencing financial hardship.
The Biden administration is introducing a new plan to forgive student loans, potentially benefiting 10 million Americans. This plan, narrower than a previous one blocked by the Supreme Court, targets borrowers facing financial hardship or in repayment for extended periods. The administration believes this revised plan will withstand legal challenges and will be implemented through the rulemaking process. A public comment period will follow its release for feedback.
