Biden seeks to cancel some interest on student loans, aiding 23 million
Americans
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[April 08, 2024]
By Stephanie Kelly
(Reuters) - U.S. President Joe Biden will announce on Monday new plans
to ease student debt that would benefit at least 23 million Americans,
the administration said, addressing a key issue for young voters whose
support he needs in the election this year.
The plans, which Biden will detail in Madison, Wisconsin, include
cancelling up to $20,000 of accrued and capitalized interest for
borrowers, regardless of income, which the administration estimates
would eliminate the entirety of that interest for 23 million borrowers.
Progressive voters, whom Biden hopes will support him in November's
election, have long urged the White House to address student loan debt.
The issue remains high on the agenda of younger voters, many of whom
have concerns about Biden's foreign policy on the war in Gaza and fault
him for not achieving greater debt forgiveness.
The new plans also include automatically cancelling debt for borrowers
who are eligible for certain forgiveness programs, who entered repayment
decades ago, who enrolled in low financial value programs, or who are
experiencing hardship.
If the plans, which have to go through a public comment period, are
finalized, they would take effect as early as this fall, White House
spokesperson Karine Jean-Pierre said in a call with reporters.
"We're delivering as much relief as possible for as many borrowers as
possible, as quickly as possible," said U.S. Secretary of Education
Miguel Cardona. "It means freedom from feeling like your student loan
bills compete with basic needs, like groceries or healthcare."
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Supporters of U.S. President Joe Biden's s plans for student debt
relief march near the White House after a U.S. Supreme Court
decision blocking the president's plan to cancel $430 billion in
student loan debt, in Washington, U.S. June 30, 2023. REUTERS/Leah
Millis/ File Photo
When combined with previous actions the Biden administration has
taken, these plans would benefit over 30 million Americans,
Jean-Pierre said.
To date, the Biden-Harris Administration has approved $146 billion
in student debt relief for 4 million Americans, the administration
said.
Biden has vowed to continue working to deliver student debt relief
to as many borrowers as possible in the wake of the Supreme Court's
June 30 ruling blocking his plan to cancel hundreds of billions of
dollars in debt.
The administration has studied the Supreme Court's decision
carefully in crafting the new plans, which would be done under
Secretary Cardona's authority under the Higher Education Act, senior
administration officials said.
As of June 2023, approximately 43.4 million student loan recipients
had $1.63 trillion in outstanding loans, according to the Federal
Student Aid website.
Other members of the administration will travel across the U.S. on
Monday to announce the new plans, including a trip from Vice
President Kamala Harris to Philadelphia.
(Reporting by Stephanie Kelly; Editing by Sonali Paul)
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