A plan aiming to reduce student loan debt were announced during President Joe Biden’s speech at Madison College today.
One of the initiatives would eliminate up to 20-thousand dollars in loan interest who owe more on their loans than when they started paying them. Borrowers could also see all of their interest erased if they’re enrolled in an income-driven repayment plan and make less than 120-thousand each year. Borrowers facing hardships such as medical debt and child care expenses that put them at risk of defaulting on their loans could get their debts canceled.
The Education Department will submit a formal proposal before the plan can be finalized.
