President Biden's New Student Loan Cancellation Proposal
President Biden is proposing a new plan to cancel student loan debt for over 30 million Americans, using a different legal authority after the Supreme Court rejected his first attempt. The plan targets five categories of borrowers and could provide relief as soon as this fall.
Key Points
- New plan uses the Higher Education Act for legal justification
- Targets five categories of borrowers
- Relief could include up to $20,000 in interest cancellation
Pros
- Provides relief for over 30 million Americans
- Targets borrowers in greatest need of help
- Could potentially start canceling debt as soon as this fall
Cons
- Opponents may challenge the plan in court
- Uncertainty regarding potential legal obstacles
- Cancellation could be halted or reversed