Tuesday, April 9, 2024 11:58AMstudent loanIn a visit to Wisconsin on Monday, Biden detailed a proposal that would cancel at least some debt for more than 30 million Americans. It's been in the works for months after the Supreme Court rejected Biden's first try at mass cancellation.
The Education Department says 25 million people would be eligible for that relief, including 23 million who would get their interest erased entirely. Those who attended college programs of "low financial value" would be eligible for forgiveness. The plan would cancel debt for borrowers who went to institutions that lost eligibility for federal education funding because they cheated students. It would also cancel loans for people who went to college programs that left graduates with low incomes compared to their student loans.
That timeline would require some maneuvering. The Education Department said it plans to release a formal proposal in the "coming months." That would usually be followed by a public comment period of 60 days. Then if the rule is finalized by Nov. 1, it would usually take effect the following July - in this case, July 2025.