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Joe Biden plans to cancel student loan debt. At least 23 million Americans would benefit
- Plan includes cancelling up to US$20,000 of accrued and capitalised interest for borrowers
- If re-elected in November, Biden said he would push hard to make community college free
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US President Joe Biden announced on Monday plans to ease student debt that would benefit at least 23 million Americans, addressing a key issue for young voters whose support he needs as he seeks re-election in November.
The plans, which the Democratic president detailed in Madison, Wisconsin, include cancelling up to US$20,000 of accrued and capitalised 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 US Supreme Court blocking his initial plan last year.
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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 programmes, who entered repayment decades ago, who enrolled in low financial value programmes, or who are experiencing hardship.
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