Biden to announce new student loan forgiveness proposals

President Biden will be announcing new proposals for partial or complete student loan forgiveness Monday in Wisconsin.

The main thrust for the latest round of student loan forgiveness proposals is to target accrued and capitalized interest on student loans. According to the Biden administration, 25 million Americans who used federal student loans now owe more than they originally borrowed because of the interest charges that have accumulated.

However, the president’s new loan forgiveness proposal will have to clear several hurdles before any student loan balances may be lowered.

The plan to target interest on student loans will be subject to approvals through the federal rulemaking process, which senior officials say will start in the coming months and would also include a public comment period.

Senior administration officials were asked by reporters when U.S. student loan recipients might see their interest balances canceled, should this new proposal be approved.