(DailyDig.com) – President Biden is likely to issue his plan on April 15 for his revised attempt to eliminate student loan debt. This will be his second attempt to give debt relief to over 25 million students.
Biden will reveal his plan on the afternoon of April 15 on the Truax campus of Madison College in Wisconsin. The Supreme Court declared his initial debt forgiveness plan unconstitutional, leading to its scaling back.
For this plan, Biden aims to annul up to twenty thousand dollars in interest on each loan that increased beyond the amount of the initial loan. This function would amend the loan to its original amount and eliminate the unrestrained interest that was prevalent over the last two decades.
The plan for students who have been paying on their loans for the last few decades is to have their outstanding debt eliminated. The plan would eliminate student’s 20-year-old school loans. For colleges that are for-profit that the Biden administration has declared of low value, the plan would also cancel those student loans.
Other qualifications for loan forgiveness include the amount of the student’s payment for their loan exceeding their average salary for the program they were enrolled in. Debt relief will be given to students who graduated from for-profit colleges and universities that closed after their graduation.
The plan would give eligibility to students who have been experiencing trouble in their lives to keep them from being able to pay on their loans. It would also eliminate the loan for students who are eligible but haven’t applied yet.
Miguel Cardona, Education Secretary, will travel to New York City to feature the new plan while meeting with students who had their loans canceled.
Cardona stated to the news media that the plan’s legal process has changed from the initial plan struck down by the Supreme Court. Instead of using the previous plan’s 2023 Heroes Act, the new plan will use the Higher Education Act, which is legally stronger.
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