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President Joe Biden, in a move to align young voters to his campaign, is scheduled to unveil a new comprehensive set of student-debt waiver measures to alleviate loans for approximately one in ten American students. The administration plans to waive debts for approximately 2 million Americans with student loans older than 20 years and cancel interest payments for another 25 million who now owe more in student debt than when they first took out the loans. The plan will also cancel the debts of over 2 million Americans who qualify for debt forgiveness through federal programs like the SAVE Plan but have not yet taken advantage of it, HuffPost reported.
The suggested programs would primarily impact borrowers who qualify for income-driven repayment (IDR) plans, have been making loan payments for 20 years, have ‘runaway interest,’ or are facing hardship. Regardless of income, the idea would grant debtors $20,000 in loan forgiveness for sums that had increased because of unpaid interest.
