After the Supreme Court blocked President Biden's initial student loan forgiveness plan, his administration has revised it to avoid legal challenges. The new plan focuses on specific groups of borrowers, such as those who have made payments for many years or attended low-quality schools. The government is also using a different law, the Higher Education Act, which gives the Education Secretary authority to forgive certain student loans. By targeting specific borrowers and using a different legal basis, the administration hopes this plan will withstand court scrutiny.
President Biden has proposed making community college tuition-free nationwide, believing it's a better way to tackle college affordability than student loan forgiveness. While a federal plan isn't underway yet, 35 states have implemented programs to cover remaining tuition after financial aid. New Mexico's Opportunity Scholarship stands out for extending benefits to adult learners and immigrants, and has seen a significant increase in college enrollment since its launch.
Shenita Leslie, a 40-year-old Houstonian, achieved financial independence by setting financial goals, creating multiple income streams, and living a frugal life. Despite student loans and the economic downturn, she prioritized debt repayment, budgeting, and well-being. Now debt-free, Shenita has redefined the American dream by valuing freedom above material possessions, inspiring others to pursue their own financial goals.
The Biden administration has released the proposed rules for its revised student loan forgiveness plan. It could reduce or eliminate debt for certain borrowers, including those eligible for existing cancellation programs, in long-term repayment, at questionable schools, or in financial hardship. Borrowers may also get up to $20,000 of unpaid interest forgiven. The plan is still subject to public comment and will likely be finalized and implemented in the fall.
President Biden has announced a new plan to forgive student loan debt. This revised plan aims to target specific groups of borrowers, including those facing financial hardship. It offers up to $20,000 of debt forgiveness for undergraduate loans and $20,000 for unpaid interest on federal loans. The plan is expected to face legal challenges, as the Supreme Court previously struck down a similar attempt.
The Biden administration has forgiven $7.4 billion in student debt for 277,000 borrowers. This is possible through improved oversight of income-driven repayment plans and the Public Service Loan Forgiveness program. Over 4.3 million people have had their federal education loans cleared, totaling $153 billion in aid, since Biden took office.
