The Biden administration on Monday announced a new sweeping student loan forgiveness plan that would provide relief for more than 30 million borrowers. The plan is Biden’s latest attempt to cancel student debt after the Supreme Court blocked his signature student debt cancellation plan last year.

Under the new plan, the administration would cancel up to $20,000 of a borrower’s accrued interest, regardless of income, the White House said in a statement Monday. In addition, low-and-middle income borrowers — single people making less than $120,000 or couples making less than $240,000 — enrolled in an income-driven repayment plan would have all of their interest forgiven. No application will be required to receive the relief, the statement added.

it will “fully eliminate” accrued interest on 23 million borrowers’ unpaid balances. The plan would also wipe out the full amount of debt owed by 4 million Americans and give partial relief of at least $5,000 to more than 10 million additional borrowers.

https://www.axios.com/2024/04/08/student-loan-forgiveness-biden-new-plan

White House Press Release –> https://www.whitehouse.gov/briefing-room/statements-releases/2024/04/08/president-joe-biden-outlines-new-plans-to-deliver-student-debt-relief-to-over-30-million-americans-under-the-biden-harris-administration/

 

Out of curiousity — as no application is required — do these “forgivenesses” happen immediately OR are must JB be re-elected before the debt wipe out date occurs??