President Biden announces student debt relief plan, targets 30 millions Americans

President Joe Biden announced a series of bold measures aimed at providing substantial relief to over 30 million Americans burdened by student debt.

The comprehensive plan, comprising five major actions, seeks to alleviate the financial strain faced by borrowers across the nation.

The first key action outlined by the administration involves the proposal of a new rule designed to eliminate up to $20,000 in accrued interest for borrowers who currently owe more than their original loan amount. This move is set to provide immediate relief to those grappling with skyrocketing interest rates.

Watch President Biden’s broadcast here.

President Biden also highlighted provisions to assist middle-class families, particularly those enrolled in specific programs like Mya, by completely canceling outstanding interest on their loans. Additionally, the plan aims to forgive the student debt of individuals who have been repaying loans for more than two decades, known as ‘bars,’ despite their prolonged efforts.

The second major action targets approximately 2 million borrowers eligible for debt forgiveness under existing programs like the Public Service Loan Forgiveness (PSLF) scheme but who have not enrolled. These individuals will now have their debt cleared under the new initiative.

Furthermore, the administration is committed to canceling debts for students who were victims of predatory practices by universities, leaving them with exorbitant loans and minimal benefits.

The department of education will determine the eligibility of these borrowers for complete debt relief.

The final component of the plan involves proposing new rules to absolve student debt for Americans facing severe financial hardships.

President Biden emphasized that these measures are set to roll out gradually over the coming months, with interest relief of up to $20,000 slated to commence this fall for more than 20 million borrowers.