Biden's Student Debt Wipeout Could Impact 23 Million

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Biden's Student Debt Wipeout Could Impact 23 Million
Student LoanEducationForgiveness
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President Joe Biden announced Monday plans to ease student debt that would benefit at least 23 million Americans, addressing a key issue for young voters whose support he needs as he seeks re-election in November.

The plans, which the Democratic president detailed in Madison, Wisconsin, include canceling up to $20,000 of accrued and capitalized interest for borrowers, regardless of income, which Biden 's administration estimates would eliminate the entirety of that interest for 23 million borrowers.

Biden's new plans include automatically canceling 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 latest plans are finalized following a public comment period, they would take effect as early as this fall, White House spokesperson Karine Jean-Pierre told reporters in a call detailing the plans. Combined with the administration's previous actions, they would benefit more than 30 million Americans, Jean-Pierre added.

To date, the administration has said it has approved $146 billion in student debt relief for 4 million Americans.

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