Biden Announces Student Loan Relief for Over 25 Million Students: ‘Unapologetic About This Fight'

President Joe Biden, in a move to align young voters to his campaign, is scheduled to unveil a new comprehensive set of student-debt waiver measures to alleviate loans for approximately one in ten American students. The administration plans to waive debts for approximately 2 million Americans with student loans older than 20 years and cancel interest payments for another 25 million who now owe more in student debt than when they first took out the loans. The plan will also cancel the debts of over 2 million Americans who qualify for debt forgiveness through federal programs like the SAVE Plan but have not yet taken advantage of it, HuffPost reported.

The suggested programs would primarily impact borrowers who qualify for income-driven repayment (IDR) plans, have been making loan payments for 20 years, have 'runaway interest,' or are facing hardship. Regardless of income, the idea would grant debtors $20,000 in loan forgiveness for sums that had increased because of unpaid interest. As a result, 23 million Americans would have their whole debt increase erased, and 25 million would receive relief from balance growth resulting from unpaid interest, The Hill reported.

“When I think about all the possibility and all the potential we can unlock when young people see that they can afford and access higher education, I think this work is nothing short of transformative,” reporters were told by Secretary of Education Miguel Cardona, at a press conference on April 7. “That’s why we’re unapologetic about this fight. Student loan forgiveness isn’t only about relief for today’s borrowers. It’s about social mobility, economic prosperity, and creating an America that lives up to its highest ideals.”

In addition to the 4 million individuals who have already gotten more than $143 billion in assistance, those covered will total 30 million. Public sector employees who work for the government or nonprofit sector make up the largest portion of borrowers who are now receiving relief. “The Biden-Harris Administration plans to release proposed rules on these plans over the coming months. If these plans are finalized as proposed, this fall the Administration would begin canceling up to $20,000 in interest for millions of borrowers and full loan forgiveness for millions more,” the administration said in its announcement.

The development and implementation of the newest debt relief strategies will require time. The Biden administration anticipates the measures will become operative in the early fall. Black and Latino borrowers, as well as community college graduates, who are more likely to struggle with student loan debt, are among the groups that the administration is highlighting as beneficiaries of its move. “These actions are expected to provide significant relief to Black and Latino borrowers, borrowers who attended community college, and borrowers who are financially vulnerable because they took out debt but never had the chance to complete their degree,” the statement explained.