Thursday, April 11, 2024

Biden Admin. Proposes a New Student Loan Relief Plan; Over 25M Borrowers Could Get Loan Balances Forgiven

 Another student loan relief plan is being proposed by the Biden asdministration, the CNET website reports today (April 11, 2024).


If it is implemented, more than 25 million borrowers could get their remaining loan balances forgiven as early as this fall. 


The plan proposes two major changes :

1. Canceling student debt for borrowers who first entered repayment 20 or more years ago. 


2. Wiping out up to $20,000 in unpaid interest on loans that have entered repayment , regardless of income. Lower-- and middle--income borrowers could be eligible for even more. 


The administration's newest plan announced  on April 8, avoids the more sweeping forgiveness of last year's proposal, which was set to forgive up to $20,000 in federal student loans for all borrowers before it was blocked by the Supreme Court in June. 

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