Biden to Unveil Fresh Student Loan Forgiveness Proposals

The Biden administration is preparing to introduce a new proposal aimed at providing relief to student loan borrowers. This follows a setback from the Supreme Court, which ruled that the administration had exceeded its authority with a prior loan forgiveness plan. The new proposal is expected to target specific groups of borrowers, such as those with high debt burdens and low incomes, as well as those who have been repaying their loans for an extended period.

The revised plan is being developed under the legal framework of the Higher Education Act of 1965 and could offer targeted relief to borrowers who have experienced significant increases in their loan balances due to accruing interest, in addition to those whose debts exceed the amounts they initially borrowed. It is estimated that the new proposal could potentially forgive the debt of up to 10 million Americans.

Since taking office, the Biden administration has approved nearly $138 billion in student loan forgiveness, impacting nearly four million borrowers. The upcoming proposal is expected to undergo a rule-making process that includes public comments before a final rule is issued. While the administration has not officially commented on the new measures, they could be implemented as early as this fall, and the potential relief is anticipated to resonate with younger voters ahead of the November election.