President Joe Biden is set to announce the details of his new student loan forgiveness plan on Monday, aiming to provide relief to tens of millions of Americans burdened by education debt. This announcement comes after the Supreme Court rejected Biden's initial attempt at wide-scale debt cancellation, prompting the president to seek an alternative approach.
While the scope of this new plan is smaller than Biden's first proposal, it still has the potential to offer partial forgiveness to approximately 25 million borrowers, according to the Biden administration. The program is designed to cancel up to $20,000 in unpaid interest for eligible individuals and forgive the debt of certain groups, including those facing financial hardship or who attended questionable value schools.
If enacted as proposed, the U.S. Department of Education could begin forgiving debt as early as this fall. Biden's push for student loan forgiveness is seen as a way to fulfill a campaign promise and appeal to voters ahead of the upcoming presidential election. A recent survey found that nearly half of voters consider student debt cancellation as an important issue in the 2024 election, with younger generations particularly supportive of the measure.
Forgiving student debt could help Biden attract support from young voters, a demographic he has struggled to connect with. In contrast, his likely opponent, Donald Trump, has a history of opposing debt relief for students, including calling for the elimination of the Public Service Loan Forgiveness program during his presidency.
As Biden moves forward with his new student loan forgiveness plan, the issue remains a key point of differentiation between the two candidates, with potential implications for the upcoming election. The debate over education debt relief continues to be a divisive and important topic in the political landscape.