23M Americans Set To Benefit As Biden Targets Interest Relief On Student Loans

As the United States grapples with the ongoing issue of student debt, President Joe Biden is poised to reveal a new plan that could offer significant relief to millions of borrowers across the nation.

What Happened: President Biden is set to announce a substantial student debt relief initiative that aims to benefit at least 23 million Americans, Reuters reported. The announcement is scheduled for Monday in Madison, Wisconsin.

The plan includes the cancellation of up to $20,000 in accrued and capitalized interest for borrowers, which could eliminate the debt interest for millions. This move is part of Biden’s effort to garner support from progressive voters for the upcoming November election.

Young voters, who have been critical of Biden’s foreign policy and are advocating for more robust debt forgiveness, are expected to be significantly impacted by this initiative. The plan also proposes automatic debt cancellation for eligible borrowers under certain forgiveness programs and those facing financial hardship.

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According to the White House spokesperson Karine Jean-Pierre, if the plans receive final approval after a public comment period, they could be implemented as early as this fall. Miguel Cardona, U.S. Secretary of Education, highlighted the relief’s potential to ease the financial strain on borrowers.

These new measures, along with previous actions, could benefit over 30 million Americans. The Biden-Harris Administration has already approved $146 billion in student debt relief for 4 million Americans. The administration has carefully designed the new plans to comply with legal boundaries following a Supreme Court ruling that blocked broader debt cancellation efforts.

As the nation awaits the official announcement, other administration officials, including Vice President Kamala Harris, will be discussing the plans across the country, with Harris visiting Philadelphia on Monday.

Why It Matters: The Biden administration has been actively pursuing student debt relief as a key policy initiative. In February, the administration forgave $1.2 billion in student loans, aiding over 150,000 borrowers affected by specific issues. This move was part of a broader effort to address the $1.7 trillion student debt crisis in the U.S.

However, the administration’s efforts have not been without controversy. Critics, such as “Shark Tank” investor Kevin O’Leary, have voiced strong opposition to the debt cancellation initiatives, labeling them as “completely unfair.”

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