A new set of plans was released by the Biden government on Monday that would help millions of Americans get rid of their college loans. When fully put into place, the government says it would bring the number of people who have had some or all of their debt cleared during the president's time to over 30 million.
The new plan, which is meant to replace an earlier version that was turned down by the U.S. Supreme Court in June, helps certain types of borrowers, like those who have had debt for a long time or are having trouble making payments. And a lot of people, no matter how much money they make, could get rid of their high interest debt.
A lot of work is being done to help four types of borrowers: those who owe more than they did when they started paying, those who started paying more than 20 years ago, those who are already eligible for loan forgiveness or discharge programs but have not applied yet, and those who are having a hard time financially.
The government said that "runaway interest" means that more than 25 million borrowers now owe more on their student loans than they did when they took them out. Any user, no matter how much money they make, would be able to cancel up to $20,000 in interest as part of the new plan's first provision.
There is also a plan that will forgive all interest for low- and middle-income users who are in it. People in this group are single people who make less than $120,000 a year and married people who make more than $240,000 a year.
It would not be necessary to apply if the plans go through as planned.
The new plan, which is meant to replace an earlier version that was turned down by the U.S. Supreme Court in June, helps certain types of borrowers, like those who have had debt for a long time or are having trouble making payments. And a lot of people, no matter how much money they make, could get rid of their high interest debt.
A lot of work is being done to help four types of borrowers: those who owe more than they did when they started paying, those who started paying more than 20 years ago, those who are already eligible for loan forgiveness or discharge programs but have not applied yet, and those who are having a hard time financially.
The government said that "runaway interest" means that more than 25 million borrowers now owe more on their student loans than they did when they took them out. Any user, no matter how much money they make, would be able to cancel up to $20,000 in interest as part of the new plan's first provision.
There is also a plan that will forgive all interest for low- and middle-income users who are in it. People in this group are single people who make less than $120,000 a year and married people who make more than $240,000 a year.
It would not be necessary to apply if the plans go through as planned.
