President Joe Biden announced plans on Monday to ease student debt, which is expected to benefit at least 23 million Americans. These plans include canceling up to $20,000 of accrued and capitalized interest for borrowers, regardless of income, potentially eliminating all such interest for 23 million borrowers. The announcement addresses a key issue for young voters, whose support Biden seeks as he prepares for re-election in November.
Progressive voters have long urged the White House to address student loan debt, and Biden's administration has taken various actions despite facing challenges, including opposition from the US Supreme Court last year. Younger voters remain concerned about Biden's foreign policy, particularly regarding the war in Gaza, and have called for greater debt forgiveness.
Republicans have criticized Biden's approach to student loan forgiveness, labeling it an overreach of authority and an unfair benefit to certain borrowers. However, Biden emphasized the potentially life-changing impact of the relief, stating his commitment to delivering student loan relief for hard-working Americans.
The new plans aim to automatically cancel debt for eligible borrowers, including those enrolled in certain forgiveness programs, experiencing hardship, or enrolled in low-value programs. If finalized following a public comment period, these plans could take effect as early as this fall and would benefit over 30 million Americans, according to White House spokesperson Karine Jean-Pierre.
Republican Senator Bill Cassidy criticized the plans as "loan schemes" that shift the cost of debt onto others and accused Biden of using them to garner votes before the election.
The administration has already approved $146 billion in student debt relief for 4 million Americans, but approximately 43.4 million student loan recipients still have $1.63 trillion in outstanding loans as of June 2023.
Education Secretary Miguel Cardona emphasized the administration's commitment to delivering relief quickly to as many borrowers as possible, despite facing obstacles such as the Supreme Court's ruling on Biden's earlier debt cancellation plan.
Vice President Kamala Harris and other administration officials are set to promote the new plans at events across the United States on Monday.
