Overview

• The plan introduces two pathways for loan cancellation: automatic relief for borrowers likely to default and an application process for those claiming hardship.
• Eligibility criteria for 'hardship' remain vague, with Education Department officials holding significant discretion in determining who qualifies.
• The Education Department estimates the plan could cost $112 billion, but independent analysts warn the cost might reach up to $600 billion.
• Previous loan forgiveness efforts by the administration have been blocked by courts, casting uncertainty over the new proposal's future.
• Public opinion is divided, with significant opposition due to potential impacts on taxes and inflation.