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Wednesday May 29, 2024

Biden plans to cancel student loan debt, 23 million Americans may be impacted

By Reuters
April 09, 2024
US President Joe Biden addresses an even. — AFP/File
US President Joe Biden addresses an even. — AFP/File

MADISON, Wisconsin: President Joe Biden announced on Monday plans to ease student debt that would benefit at least 23 million Americans, addressing a key issue for young voters whose support he needs as he seeks re-election in November.

The plans, which the Democratic president detailed in Madison, Wisconsin, include cancelling up to $20,000 of accrued and capitalized interest for borrowers, regardless of income, which Biden’s administration estimates would eliminate the entirety of that interest for 23 million borrowers.

Progressive voters, whom Biden hopes will support him against Republican challenger Donald Trump, have long urged the White House to address student loan debt. Biden’s administration has taken a string of actions despite the US Supreme Court blocking his initial plan last yer.

The issue remains high on the agenda of younger voters, many of whom have concerns about Biden’s foreign policy on the war in Gaza and fault him for not achieving greater debt forgiveness. Republicans have called Biden’s student loan forgiveness approach an overreach of his authority and an unfair benefit to college-educated borrowers while other borrowers received no such relief.