Biden administration announces new steps to cancel student loans

The new actions proposed Monday could provide student debt relief to 30 million Americans if implemented, according to a statement by the White House. The Biden administration says it has already saved $146 billion in loans for roughly 4 million Americans through previous actions.

What are the new actions the administration is proposing? On Monday, the administration proposed eliminating debt for borrowers eligible for relief under the SAVE Act, Public Service Loan Forgiveness, or other relief programs who haven’t successfully applied for assistance.

The proposals would also provide relief to students of and from certain institutions that lost their eligibility for federal student aid programs or institutions that failed to provide them with a degree that would help them earn more than their high school diplomas would have.

The administration would also relieve individuals at risk of defaulting on their student loan payment plans. Additionally, it would cancel up to $20,000 in so-called runaway interest rates for those who owe more in student loans than they originally borrowed.

How many people would this affect? The proposals would provide partial student debt relief to roughly 10 million individuals and full debt relief to 4 million individuals if implemented, according to numbers provided by the White House. The proposals would fully cancel all interest accrued by roughly 23 million borrowers.

Dig deeper: Listen to Nick Eicher and David Bahnsen’s discussion on The World and Everything in It podcast about the Biden administration’s plans to cancel student debt for many borrowers.