After months of hearings and negotiations, the Biden administration announced its latest plans Monday for student debt relief, proposing changes that would save about 30 million borrowers billions of dollars in total. The plans aren't as sweeping as the across-the-board loan forgiveness of up to $20,000 per borrower that Biden ordered in 2022, a measure the Supreme Court threw out last year.
A preliminary version of this proposal said it would apply not just to recipients of loans made directly by the federal government, but also to all Federal Family Education Loan recipients, including parents who took out Federal PLUS Loans through private lenders.The rationale behind most of these proposals is that student loan programs were poorly managed and administered, causing borrowers to amass far more debt than they should have.