Officials say 10 million borrowers could get at least $5,000 in debt relief. The plan will be announced in Wisconsin. It might get more support from young voters.
Biden’s Plan to Help with Student Loans
President Biden will announce a big plan to help lots of people in Wisconsin with their student loans. Last year, the Supreme Court said no to this plan, but now Biden is doing it.
The plan will make the loans smaller for 23 million people. For over four million, it will make the loans disappear. And 10 million will get at least $5,000 less to pay.
The Education Secretary, Miguel Cardona, said they’re keeping their promises and giving help fast.
Biden will talk about this in Madison, Wisconsin.Kamala Harris, the Vice President, is scheduled to visit Philadelphia. And Cardona is going to New York.
Everyone is working together to help people with their loans.
Biden wants a new plan to help people with student debt. Before November’s election, this could make people who were sad about the first plan feel better. The first plan would have erased up to $20,000 in debt for many people.
But there are big problems for Biden. The new plan needs lots of time before it can happen. People have to talk about it for months before it starts. Only some parts will start in the early fall.
Republicans might fight against it in court. This could take a long time to solve. So, the plan might not happen before the election.
Even if it doesn’t happen, Biden’s team hopes people will see he tried. Before, the Supreme Court stopped the first plan. But Biden used other rules to cancel $138 billion in debt for four million people.
The new plan is bigger, but they think it’s better prepared for challenges. It’s more focused and uses different laws.
Overall, Biden’s team wants people to know he’s trying to help with student debt, even if it’s hard.
Biden’s Student Loan Relief Plan
President Biden wants to help out lots of people with student loans. His press secretary, Karine Jean-Pierre, said they won’t let Republicans stop them.
They have a plan for five groups of borrowers.
First, those whose loan interest made their debt bigger than what they borrowed could get up to $20,000 of that interest wiped away. People making less than $120,000 a year (or $240,000 for couples) could get all their interest forgiven. This could help around 23 million people.
About two million borrowers who could already get their loans forgiven haven’t asked for help. Now, the Education Department can forgive their debt without them asking.
People who started repaying federal student loans for undergrad over 20 years ago, or grad school loans over 25 years ago, can get their debt canceled.
Students who borrowed money for colleges that lost certification would also have their debt canceled.
Lastly, those with big expenses like medical bills or childcare can apply for loan forgiveness. They didn’t say how many might qualify.
This plan aims to make things easier for millions struggling with student loans.
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