The president told the crowd this debt relief could be “life changing” for borrowers
MADISON, Wis. – President Joe Biden visited Madison Area Technical College on Monday to announce five major actions in the administration’s new student debt forgiveness plan that would provide relief for tens of millions of borrowers.
According to White House officials, the new plans would provide over 10 million borrowers with at least $5,000 in student debt relief, cancel accrued interest for 23 million borrowers and eliminate the full amount of debt for more than 4 million borrowers.
The proposal comes after Biden promised to move ahead with new plans for student debt relief after the U.S. Supreme Court struck down his loan forgiveness plan last year, which would have forgiven $400 billion in federal student loan debt.
“We made a commitment to fix our broken student loan system,” Biden said. “While a college degree still is a ticket to the middle class, that ticket is becoming much too expensive.”
His swing-state visit and the announcement of a new student debt relief plan could help him win the support he needs from young voters in the upcoming presidential election. Biden won Dane County with 76% of the vote in the 2020 election. The community, home to Wisconsin’s flagship university, continues to be crucial for Democrats seeking election in this battleground state.
“My administration has taken the most significant action to provide student debt relief ever in the history of this country,” Biden said.
The Biden-Harris administration’s five new actions:
The first action of the loan forgiveness plan is to cancel up to $20,000 in “runaway interest” for those who owe more than they did when they originally borrowed. For low and middle-income Americans enrolled in Biden’s SAVE program, the entire amount by which their balance has grown since entering repayment would be canceled.
Second, the Biden administration plans to cancel debt for borrowers who still owe student loans despite entering repayment over 20 years ago.
Third, the administration plans to automatically cancel student debt for around two million borrowers who would be eligible for debt forgiveness through the SAVE plan and other forgiveness programs but have not been able to enroll.
Next, the administration plans to cancel debt for borrowers who the Department of Education determines were cheated by institutions or programs that lost their eligibility to participate in the Federal student aid program, leaving them with unaffordable loans.
Lastly, Biden said the Department of Education will propose a new rule to cancel student debt for Americans facing financial hardship due to expenses like child care or health care preventing them from paying back their loans.
Impact on Wisconsinites
Ashley Storck and Sam Leary, two UW–Madison alumni who together owe over $75,000 in student loans, spoke about the impact of the Biden administration’s SAVE plan. According to Storck, the plan dropped their $700 monthly loan payments to zero, allowing them to invest more in their Madison-based marketing firm.
“Because of President Biden’s commitment to hardworking Americans, 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 said.
According to the Department of Education’s most recent data from 2023, there are 700,600 borrowers who collectively possess $21.4 billion in federal student loan debt in Wisconsin.
“President Biden and I both know that the dream of pursuing a higher education looks a bit different these days than it did when we went to college,” Gov. Tony Evers told the crowd at Madison College. “Today, the high costs can often be a barrier for kids and families pursuing their dreams and furthering their future.”
This was the president’s third visit to Wisconsin this year.
