Biden’s New Student Loan Forgiveness Plan: What You Need to Know

The big picture

The Biden administration has unveiled a new proposal for student loan forgiveness, focusing on borrowers experiencing financial hardship. This “Plan B” comes after the Supreme Court struck down the administration’s first attempt in summer 2023.

Why it matters

The proposed rule could potentially forgive billions in student loan debt, but faces significant hurdles in implementation and potential legal challenges.

By the numbers

Cost estimates for the program range from $112 billion to $400 billion over the next decade, depending on various factors and implementation details.

What’s next

The Department of Education faces a tight timeline to finalize the rule before a potential administration change. The process includes a public comment period, review by the Office of Management and Budget, and publication of a final rule.

The bottom line

While the Biden administration is pushing to implement this new forgiveness plan, its future remains uncertain due to regulatory hurdles and the possibility of a new administration reversing course.