MADISON, Wis. — More than 30 million borrowers could see student loan debt relief from President Joe Biden’s actions over the last three years and his latest plan rolled out Monday.

The latest visit to the Badger State comes just days after the Universities of Wisconsin Board of Regents unanimously approved raising in-state tuition for undergraduate students by 3.75%.

Now, the White House is trying to tackle student debt again, after the U.S. Supreme Court blocked its original plan last June.

What You Need To Know

  • Under the plan, more than 25 million borrowers, who owe more than they originally borrowed, would have up to $20,000 of the amount a borrower’s balance has grown due to unpaid interest eliminated, regardless of income

  • Debt would be automatically canceled for two million borrowers who have not applied for forgiveness programs but are eligible for them

  • An estimated 2.5 million people who started repaying their undergraduate loans at least 20 years ago, and their graduate loans at least 25 years ago, would have debt canceled

  • Borrowers who attended colleges that have since lost their eligibility to participate in the federal student aid program would also have debt canceled
  • Debt would be eliminated for those facing hardship that prevents them from paying back loans

“I think we all in this room share one goal; to give everybody a fair shot, just a shot,” President Biden told the crowd gathered in a gymnasium on the Madison College campus. “The freedom to chase their dreams.”

The president’s plan would wipe out interest for 23 million borrowers, cancel the full amount of debt for more than four million Americans, and provide another 10 million people with at least $5,000 in debt relief.

“Too many people feel the strain and stress wondering if they can get married, have their first child, start a family because even if they get by, they still have this crushing, crushing debt,” President Biden added.

So far, the Biden-Harris administration has been able to cancel debt for four million borrowers through dozens of executive actions.

Ashley Storck and her husband, Sam Leary, discuss how the SAVE Plan has benefitted them and allowed for their small Madison business to grow. (Spectrum News 1/Mandy Hague)

Through the SAVE Plan, Ashley Storck and her husband, who aren’t just partners in life but business too, saw their payments drop to zero, which they said has been life-changing amid runaway interest.

“The SAVE Plan empowered us to reinvest in our business, hire our first employee, and help promote economic growth throughout the state of Wisconsin,” Storck, who owns a small business in Madison, told the crowd before the president took the stage.

President Biden later told the audience he wants to keep investing in America, including free community college tuition someday.

“We’re giving people a chance to make it,” President Biden concluded. “Not a guarantee, just a chance to make it, and that’s why I’ve never been more optimistic about our future.”

Similar to previous efforts by the Biden-Harris administration, Republicans pushed back Monday against the latest plan.

Rep. Bryan Steil (WI-01), who is a former regent of the Universities of Wisconsin and had direct involvement with controlling the cost of higher education, was among those to voice opposition.

“Today, President Biden is back in Wisconsin pitching another expensive, inflationary election year giveaway,” Steil said in a statement. “His student loan debt repayment plan is an unconstitutional abuse of power and is unfair to anyone who did not go to college or paid off their own loans.” 

Related Stories