How Biden’s new loan plan could help Virginians

Kenzie Finch
·2 min read
3
  • Oops!
    Something went wrong.
    Please try again later.

(WAVY) — A new Biden Administration plan could help Virginians struggling to pay off their student loan debts.

President Joe Biden is planning to announce new plans to cancel student loan debt for eligible Americans on Monday, April 8 as a part of the Higher Education Act.

Biden will talk about student debt relief in Wisconsin after primary voting delivered warning signs

Virginia is ranked No. 5 in the U.S. for the most student debt, according to Stacker. The state has around 1,143,200 borrowers with an average loan balance of $39,001.

If the proposed plan is implemented, it would help provide debt relief to over 30 million Americans.

According to a release from The White House, the plans will fully eliminate accrued interest for 23 million borrowers, as well as providing over 10 million borrowers with at least $5,000 in debt relief.

Previous Coverage: President Joe Biden will unveil his new plan to give student loan relief to many new borrowers

The Biden-Harris Administration has already approved $146 billion in student debt relief, helping an estimated four million Americans through the use of the SAVE plan, as well as fixing the Public Service Loan Forgiveness and Income-Driven Repayment plans.

What to know about the SAVE plan, the income-driven plan to repay student loans

Previously, the Administration has come under criticism for failing to fulfill the promise of canceling student debt. The Biden Administration did attempt to cancel up to $20,000 in federal student loans before the Supreme Court ruled against it.

Now, the Administration is trying a new method.

According to a White House Official, the new plan would:

  • Cancel runaway interest for over millions of borrowers

  • Automatically cancel debt for borrowers eligible for forgiveness programs like SAVE, PSLF, and others, but who have not applied for those programs

  • Cancel debt for borrowers who entered repayment 20 years ago or more if they have undergraduate loans and 25 years ago or more if they have graduate loans

  • Cancel debt for borrowers who enrolled in low financial value programs

  • Cancel debt for borrowers experiencing hardship in their daily lives preventing them from being able to pay back their loans now or in the future

Check with WAVY.com for more updates.

For the latest news, weather, sports, and streaming video, head to WAVY.com.