Biden Admin Announces Another Wave Of Student Loan Forgiveness, Reveals Plan To Forgive 30 Million Americans

The Biden-Harris White House released a plan that asserts they will clear student loan debts of up to 30 million Americans – a similar plan they have ran on before but fell through.

Though the Biden administration has forgiven chunks of student loan debt here and there, this latest ambitious plan would not require anyone to sign-up and is automatic, with a low threshold to receive the benefits.

The White House explained their ambitions yesterday, April 8th, stating:

Today’s announcement lays out the plans the Biden-Harris Administration is pursuing through that effort. In total, these plans would fully eliminate accrued interest for 23 million borrowers, would cancel the full amount of student debt for over 4 million borrowers, and provide more than 10 million borrowers with at least $5,000 in debt relief or more.

More than 25 million borrowers owe more than they originally borrowed, including many who have made years of payments, due to the interest rates on Federal student loans. President Biden will announce plans that, if finalized as proposed, would cancel up to $20,000 of the amount a borrower’s balance has grown due to unpaid interest on their loans after entering repayment, regardless of their income. Low and middle-income borrowers enrolled in the SAVE plan or any other income-driven repayment (IDR) plan would be eligible for the entire amount their balance has grown since entering repayment to be canceled under the Administration’s plans. This group of borrowers includes single borrowers who earn $120,000 or less and married borrowers who earn $240,000 or less. No application will be needed for borrowers to receive this relief if the plan is implemented as proposed.

Millions of the borrowers who could be helped by these plans have continued to see their balances grow because of accrued interest, despite making their monthly payments. Many have also had this unpaid interest capitalized, meaning it is added to their principal balance and borrowers are now paying interest on that higher amount. The Administration’s plan would forgive interest balances built up to date for 25 million borrowers, with 23 million likely to have all of their balance growth forgiven…