Student Debt Forgiveness in October?

The current administration may try to forgive student debt again as early as next month, in a sweeping redo effort that could impact tens of millions of Americans. An attempt to deliver this aid could come roughly 14 months after the Supreme Court blocked it from carrying out its first student loan forgiveness plan. Just hours after the justices announced their ruling in June 2023, Biden vowed to find a new way to reduce or eliminate people’s education debt.

"The new plan primarily benefits borrowers by reducing or eliminating the interest that can make student loan balances balloon. It would fully eliminate accrued interest for 23 million borrowers who owe more than they originally borrowed; two million additional borrowers would see their interest balances reduced. The proposal would also forgive debt for borrowers facing financial hardships, like expensive childcare or healthcare. In tandem with existing forgiveness programs, the plan would help erase four million borrowers’ total debt, the White House said."

Mainly through fixes to long-troubled loan relief initiatives, the Biden administration has now approved nearly $169 billion in loan forgiveness for roughly 4.8 million people. Its new plan is expected to reach at least 25 million more people. The U.S. Department of Education disclosed that it will publish its final rule on student loan relief sometime in October.