Biden seeks to cancel some interest on student loans, aiding 23 million Americans
Last edited Mon Apr 8, 2024, 10:55 AM - Edit history (1)
Source: Reuters
April 8 (Reuters) - President Joe Biden will announce on Monday plans to ease student debt that would benefit at least 23 million Americans, his administration said, addressing a key issue for young voters whose support he needs as he seeks re-election in November.
The plans, which the Democratic president is set to detail in Madison, Wisconsin, include cancelling 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.
Progressive voters, whom Biden hopes will support him against Republican challenger Donald Trump, have long urged the White House to address student loan debt. Biden's administration has taken a string of actions despite the U.S. Supreme Court blocking his initial plan last year.
The issue remains high on the agenda of younger voters, many of whom have concerns about Biden's foreign policy on the war in Gaza and fault him for not achieving greater debt forgiveness. Republicans have called Biden's student loan forgiveness approach an overreach of his authority and an unfair benefit to college-educated borrowers while other borrowers received no such relief. Biden's new plans include automatically cancelling 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.
Read more: https://www.reuters.com/world/us/biden-seeks-cancel-some-interest-student-loans-aiding-23-million-americans-2024-04-08/
Link to White House PRESS RELEASE - President Joe Biden Outlines New Plans to Deliver Student Debt Relief to Over 30 Million Americans Under the Biden-Harris Administration
Link to White House FACT SHEET - FACT SHEET: President Biden Announces New Plans that would Provide Relief to Borrowers Disproportionately Burdened by Student Loan Debt
Article updated.
Original article -
April 8 (Reuters) - U.S. President Joe Biden will announce on Monday new plans to ease student debt that would benefit at least 23 million Americans, the administration said, addressing a key issue for young voters whose support he needs in the election this year.
The plans, which Biden will detail in Madison, Wisconsin, include cancelling up to $20,000 of accrued and capitalized interest for borrowers, regardless of income, which the administration estimates would eliminate the entirety of that interest for 23 million borrowers. Progressive voters, whom Biden hopes will support him in November's election, have long urged the White House to address student loan debt.
The issue remains high on the agenda of younger voters, many of whom have concerns about Biden's foreign policy on the war in Gaza and fault him for not achieving greater debt forgiveness. The new plans also include automatically cancelling 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 plans, which have to go through a public comment period, are finalized, they would take effect as early as this fall, White House spokesperson Karine Jean-Pierre said in a call with reporters. "We're delivering as much relief as possible for as many borrowers as possible, as quickly as possible," said U.S. Secretary of Education Miguel Cardona. "It means freedom from feeling like your student loan bills compete with basic needs, like groceries or healthcare."
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