Biden unveils another plan to wipe up to $20,000 in student loan debt for up 25 ... trends now
View
comments
The Biden administration officially unveiled new rules it plans to use to wipe out millions in debt for student loan borrowers by tackling ballooning interest.
President Biden first announced his latest proposals to cancel student loan debt during a visit to Madison, WI more than a week ago after his original plan was blocked by the Supreme Court.
In total, the administration believes his combined efforts could cut debt for more than 30 million borrowers including the 4.3 million who have already seen their debt forgiven.
The new rules which will be formally published on Wednesday. The public will then have 30 days to comment on the proposals.
The Education Department will then finalize the rules to start canceling debt this fall.
President Biden at an event to address student loan debt in Madison, WI. The Education Department officially released the first set of draft rules under his new plan on Tuesday
It comes as Republicans have accused President Biden of attempting to 'buy votes' as he runs for reelection.
18 Republican-led states have already sued over another plan the president released, the SAVE plan.
The administration has wiped $153 billion in student loan debt since Biden took office and expects to new rules to cancel billions more.
The Penn Wharton Business Model estimates the new rules along with the president's recent SAVE plan would cost about $559 billion over a decade.
Protesters gathered outside the Supreme Court as the court blocked President Biden's previous student loan relief plan last June. Biden has already canceled $153 billion in student loan debt despite the court blocking the first effort
The first of the drafted rules focuses on canceling interest for borrowers who have more debt now than when they originally took out loans due to growing interest.
It would allow the Education Department to automatically cancel up to $20,000 in debt for borrowers on the
