It will be his second, and in some respects his third, try to make good on a 2020 campaign promise to cancel student loans, with high political and financial stakes.
The range and power of those tools will be fiercely debated between now and Election Day. Biden’s original student loans plan would have written off up to $20,000 in debt per borrower but was ruled illegal by the Supreme Court.
“He’s trying to come through on a campaign promise,” said Sasha Tirador, a Florida-based Democratic strategist. “The good thing is that younger folks actually read more about this subject than some others that don’t affect them as directly. They’re aware of the hurdles Biden has had to go through in order to get this accomplished.”
But that also means it could affect fewer people. The Department of Education previously indicated it is targeting five groups of borrowers: those whose balances are greater than what they originally borrowed, those with loans that were taken out decades ago, those whose college experience “did not provide sufficient financial value,” those who are eligible for relief programs but have not applied, and those who have “experienced financial hardship and need support.