President Joe Biden is poised to unveil plans on Monday aimed at alleviating student debt, a move expected to benefit at least 23 million Americans, according to his administration. This addresses a pressing concern for young voters, whose support Biden seeks as he campaigns for re-election in November
The proposed measures, to be detailed in Madison, Wisconsin, include the cancellation of up to $20,000 of accrued and capitalized interest for borrowers, regardless of income. The administration estimates that this step would eliminate all such interest for 23 million borrowers.
Progressive voters, whose support Biden hopes to secure against Republican challenger Donald Trump, have long advocated for action on student loan debt. Despite the U.S. Supreme Court blocking his initial plan last year, Biden's administration has taken several actions on the issue.
The new proposals also aim to automatically cancel debt for borrowers eligible for certain forgiveness programs, those who entered repayment decades ago, those enrolled in low financial value programs, or those facing hardship. If finalized after a public comment period, these plans could take effect as early as fall, according to White House spokesperson Karine Jean-Pierre. Combined with previous actions, they could benefit more than 30 million Americans.
To date, the administration has approved $146 billion in student debt relief for 4 million Americans. 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.
"We're delivering as much relief as possible for as many borrowers as possible, as quickly as possible," said U.S. Education Secretary Miguel Cardona.
Biden has pledged to continue pushing for student debt relief following the Supreme Court's decision blocking his earlier plan to cancel hundreds of billions of dollars in debt. Administration officials said they considered the 6-3 ruling in crafting the new plans.
U.S. Senator Bill Cassidy, the top Republican on the Senate education panel, criticized such "loan schemes," calling them an unfair attempt to buy votes before an election without addressing the high cost of education that puts young people back into debt.
Other administration officials, including Vice President Kamala Harris in Philadelphia, are set to promote the new plans in events across the United States on Monday.