On Monday, Joe Biden made his way to Wisconsin to announce his latest plan for relieving student loan debt. While boarding Air Force One, he almost stumbled on the small staircase once again.
Biden spoke at Madison College Truax Campus about his ambitious proposal to eliminate student loan debt.
CNBC reported about Biden’s new student loan cancelation plan:
President Joe Biden unveiled his new plan to forgive student debt on Monday, less than a year after the Supreme Court blocked his initial attempt.
Consumer advocates have long criticized the fact that interest rates on federal student loans may exceed 8%, which can make it tough for borrowers who fall behind or are on certain payment plans to reduce their balances.
More than 25 million federal student borrowers owe more than they originally borrowed, according to the Biden administration.
It estimates that, if its new plan is enacted as proposed, borrowers will get up to $20,000 of unpaid interest on their federal student debt forgiven, regardless of their income.
Certain low- and middle-income borrowers may benefit even more.
Single people who earn $120,000 or less, and married borrowers making $240,000 or under, could have the entire amount of interest that has accrued on their debt since they entered repayment canceled under Biden’s plan.
Biden bragged about ignoring the Supreme Court in his plan to unilaterally cancel student loan debt.
“That didn’t stop us,” Biden said. “We continue to find alternatives to reduce student debt.”
Biden has employed several tactics to bypass the Supreme Court’s ruling that invalidated his student loan relief program.
Last year, the Supreme Court voted 6-3 against Joe Biden’s student loan forgiveness initiative. In response, the Department of Education implemented a workaround forbearance program. This program cancels $39 billion in student loans by considering periods of non-payment as payments.
This forbearance program is unlike the usual ones. Borrowers won’t be required to repay “missed” payments or cover the shortfall from “reduced” payments. Additionally, no interest will accrue on any of the missed payments.
In January, Biden independently canceled an additional $5 billion in student loan debt for 74,000 borrowers, seen by some as his latest political maneuver to secure votes.
Joe Biden also revealed plans to forgive student loans for individuals who borrowed less than $12,000 and have been repaying them for a decade.
WATCH:
Biden brags about ignoring the Supreme Court on his scheme to unilaterally cancel student loan debt: "That didn't stop us" pic.twitter.com/JfWolVGiC0
— RNC Research (@RNCResearch) April 8, 2024
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