WASHINGTON (NEXSTAR) – President Joe Biden said his administration is inching closer to finalizing a plan to provide student debt relief to millions of Americans.
“Today, too many Americans, especially young people, are saddled with unsustainable debts in exchange for college degrees,” Biden said.
The president’s latest plan comes after the Supreme Court struck down a 2022 push to erase student debt for more than 40 million Americans.
“We continue to find alternative paths to reduce student debt payments,” Biden said.
The new plan targets up to 30 million Americans. In part, it would cancel up to $20,000 in runaway interest for borrowers who now owe more than they did at the start of repayment.
It would also wipe out the entirety of interest for borrowers enrolled in the SAVE plan and make less than $120,000 a year.
Additionally, it would cancel debt for borrowers experiencing financial hardships such as high medical bills or childcare.
“Give everybody a fair shot. Just a shot. Freedom to chase their dreams,” Biden said.
The president made the announcement in the swing state of Wisconsin. Republicans there are slamming the move.
“Expecting our hardworking blue-collar men and women who decided to go to trade school to pay off the bill of people that have decided to get a four-year degree,” Rep. Derrick Van Orden (R-Wis.) said.
Adam Kissel with The Heritage Foundation said he expects another legal battle at the Supreme Court.
“We could see a dozen AGs representing a dozen states once again sue the Biden administration over this unlawful action,” Kissel said.
The rule filed by the Department of Education is not technically final.
Before anyone sees relief, it will need to undergo public comment in the coming months.
