Earlier this month, the Biden administration announced new plans for student debt relief. Jon Donenberg, Deputy Director for the National Economic Council, laid out how many people the proposed plans could help if enacted.
“The plans are going to fully eliminate runaway interest for 23 million borrowers,” said Donenberg. “We also think we are going to end up canceling the full amount of student debt for about 4 million borrowers. And we think, in a typical case, more than 10 million of these borrowers are going to see at least $5,000 in debt relief. So it’s a pretty big deal.”
These, Donenberg explains, are alternative plans that the administration came up with after their original plans were quashed.
“In the wake of the Supreme Court’s decision striking down the administration’s original student debt plan, the President announced that his Department of Education would pursue alternative paths to debt relief under the law,“ said Donenberg.
If enacted, the plans would start in the fall.
Shortly after these plans were announced, seven Republican-led states, including Florida, filed suit to block them. The other states involved are Missouri, Arkansas, Georgia, North Dakota, Ohio and Oklahoma.
To date, the Biden administration has canceled more than $146 billion in student debt for 4 million people.
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