Biden Administration Moves Forward with New $147 Billion Student Loan Forgiveness Plan

Education Department to notify 30 million borrowers about potential debt relief as new regulations near finalization.

The new plan aims to forgive loans for borrowers who owe more than they originally borrowed or have been repaying for decades.
The Education Department will email all federal student loan borrowers with updates and opt-out instructions by August 30.
The plan follows the Supreme Court's rejection of Biden's previous debt relief efforts and ongoing legal challenges.
Borrowers in income-driven repayment plans earning under $120,000 annually may see up to $20,000 in forgiveness.
The new regulations could take effect this fall, potentially benefiting up to 30 million borrowers.