Biden rolls out another student debt relief plan, this time targeting borrowers at risk of default

Published On Oct 25, 2024, 3:19 PM

The Biden administration has introduced a new plan to cancel student loans for borrowers at risk of defaulting. The initiative might benefit up to 8 million individuals, costing around $112 billion. Loans could be automatically discharged for those predicted to have an 80% chance of defaulting, while others could apply for forgiveness based on a holistic assessment of their financial situation. The new proposal comes amidst ongoing legal challenges to previous student debt relief efforts, and it aims to reduce government costs associated with servicing defaulted loans.