More than 25 million federal student borrowers owe more than they originally borrowed, according to the Biden administration.
It estimates that, if its new plan is enacted as proposed, borrowers will get up to $20,000 of unpaid interest on their federal student debt forgiven, regardless of their income.
Borrowers would need to be enrolled in an income-driven repayment plan to qualify but shouldn't have to apply for the relief.
"Student debt interest capitalization has been keeping families from accessing their version of the American Dream," said Jaylon Herbin, director of federal campaigns at the Center for Responsible Lending.
"Erasing that debt will lessen the burden of student loan debt on millions of borrowers and allow them to pay off their loans in a timely manner."
Persons:
Joe Biden, Kevin Lamarque, Biden, Jaylon Herbin
Organizations:
Madison Area Technical, Truax, Reuters, Consumer, Center for
Locations:
Madison , Wisconsin, U.S