President Biden will announce a new plan that will cancel the student loan debt of more than 30 million Americans.
According to a White House fact sheet, Biden’s plan includes:
Waiver of accrued and capitalized interest for millions of borrowers
More than 25 million borrowers owe more than they originally borrowed, including many who have made years of payments, because of the interest accruing on federal student loans. President Biden will announce plans to write off up to $20,000 of the amount a borrower’s balance has grown due to unpaid interest on loans after entering repayment, regardless of income.
Automatic debt relief for borrowers otherwise eligible for loan forgiveness under SAVE, closed school releases, or other forgiveness programs, but not enrolled
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Elimination of student debt for borrowers repaying for 20 years or more
More than 2 million borrowers have been repaying their student loans for two decades or more and still carry debt from these old loans. The Administration’s new proposals would waive student debt for borrowers with only college debt would qualify for forgiveness if they first made repayment at least 20 years ago (on or before July 1, 2005), and borrowers with any debt university would qualify. if they repaid for the first time 25 or more years ago (before July 1, 2000).
Help borrowers enrolled in low-value programs or institutions
The administration has worked aggressively to hold colleges accountable when they leave students with mountains of debt and without good job prospects. The Administration proposes to waive loans from borrowers who went into debt to enroll in institutions or programs who lost eligibility to participate in the federal student aid program or who were denied recertification because they cheated or take advantage of the students.
Help troubled borrowers repay their loans
While the proposed plans and executive actions taken to date would help tens of millions of borrowers, there are many more borrowers whose student loans continue to pose a barrier to participating in the economy, accessing economic mobility, or pursuing their own dreams. The Administration will also carry out a specific action to which it is dedicated Student debt relief for borrowers experiencing hardships in their daily lives that prevent them from fully repaying their loans now or in the future.
To date, the Biden administration has canceled $146 billion in student loan debt for 4 million Americans, and the administration has bigger plans as it pledges to fix the broken student loan system.
Section Michael Cardona, Director of Education, told PoliticusUSA during a call with reporters: “President Biden often says that the only word that describes America is possibility. When I think about all the possibilities 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. That’s why we are not sorry about this fight. Student loan forgiveness isn’t just about relief for today’s borrowers. It’s about social mobility, economic prosperity, and creating an America that lives up to its highest ideals. “
Donald Trump has already stated that he intends to end all student loan forgiveness and debt cancellation if he returns to the White House.
The presidency is a reflection of the values and priorities of the person holding the office.
Biden has made removing the burden of student loan debt from the shoulders of millions of Americans one of his top priorities.
Donald Trump’s priority is to cut taxes for billionaires
The 2024 election is not a choice between equal candidates or the lesser of two evils. The election is a choice between a man who wants to use the presidency to help others or a man who wants to help only himself.
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