By DARLENE SUPERVILLE and COLLIN BINKLEY (Associated Press)
MADISON, Wis. (AP) — President Joe Biden stated on Monday that over 30 million borrowers would experience “life-changing” relief from his new plan to reduce their student loan debt burdens, a new effort by the Democratic president to fulfill a campaign promise that could improve his standing with younger voters.
He explained the plan, which has been in progress for months, during a visit to Wisconsin, one of a few key states that could decide the result of Biden’s likely November rematch with Donald Trump, the expected Republican nominee.
Biden said he aimed to “give everyone a fair chance” and the “freedom to pursue their dreams” as he expressed concern about the increasing cost of higher education.
“Even when they work hard and pay their student loans, their debt grows instead of reducing,” he said. “Too many people feel the pressure and worry, questioning if they can marry, have their first child, start a family, because even if they get by, they still have this overwhelming, overwhelming debt.”
Biden’s visit, which included a visit to a Chicago fundraiser on the way back to Washington, comes a week after primary voting in Wisconsin revealed political vulnerabilities for him as he prepares for the general election.
Over 48,000 Democratic voters selected “uninstructed” instead of Biden, more than double his slim victory margin in the state in 2020.
Trump also experienced a significant number of defections during the state’s primary, with nearly 119,000 Republicans voting for someone other than him.
But Biden’s results, which mirrored similar protest votes in states like Michigan and Minnesota, have worried Democrats who are eager to strengthen the coalition that propelled him into the White House in the first place.
An important division has been the Israel-Hamas war. Younger voters are more likely to disapprove of Biden’s ongoing support for Israel’s military operation in Gaza, which has led to significant casualties among Palestinian civilians.
Worries about the war have spread throughout the Madison area, according to Democratic Rep Mark Pocan, who represents the city. Pocan said he was “surprised to see the intensity on the issue” from voters of all ages, and he wanted Biden to be informed.
“I just want to ensure he knows that if we’re going to have an issue, that could be the issue in Wisconsin,” Pocan said.
Some young voters have been impatient with Biden’s efforts to eliminate student loan debt. The Supreme Court last year thwarted his initial attempt to forgive hundreds of billions of dollars in loans, a decision that Biden referred to as a “mistake.”
Since then, the White House has pursued debt relief through other targeted actions, including those for public service workers and low-income borrowers. Officials in the administration said they have canceled $144 billion in student loans for nearly 4 million Americans.
At the same time, the Department of Education has been working on a broader plan to replace Biden’s original effort. Monday’s announcement was a chance to motivate young voters whose support Biden will need to defeat Trump in November.
Vice President Kamala Harris traveled to Pennsylvania, another state where the outcome of elections is uncertain, on Monday to support the idea of reducing the amount of money people owe to banks and other institutions, in a meeting with city and school employees in Philadelphia.
She said, “You shouldn’t have to choose between working and being able to pay your bills.”
According to Republicans, Biden’s plan moves the responsibility of paying for college education from the people who took out loans to attend school onto taxpayers. Kris Kobach, the Republican attorney general in Kansas, accused him of trying to change the law in a way that distorts its original meaning.
The Job Creators Network, a conservative advocacy group that opposed Biden’s original plan, is also considering taking legal action. The group is supported by Bernie Marcus, a Republican donor who is also organizing a fundraiser for Trump in Atlanta on Wednesday. Two years ago, Trump characterized Biden’s debt relief initiative as an attempt to gain more money in an underhanded way to improve his chances in the election.
Biden’s new plan would increase the number of people who qualify for federal student loan relief under the Higher Education Act, which officials in charge of the government believe puts it in a stronger legal position than the expansive proposal that was rejected by a 6-3 majority decision from the court last year.
The plan is smaller and more focused compared to Biden’s original plan, which would have canceled up to $20,000 in loans for more than 40 million borrowers. According to the White House, the new plan would eliminate some or all federal student loans for more than 30 million Americans. The Education Department intends to submit a formal proposal in the next few months and start implementing parts of the plan as early as this fall.
The plan’s most far-reaching advantage would eliminate up to $20,000 in interest for borrowers whose balance has grown beyond the original amount due to what Biden described as uncontrollable interest. This part of the plan would pardon at least some unpaid interest for an estimated 25 million borrowers, with 23 million having all their interest erased, according to the White House.
An additional 2 million borrowers would have their loans canceled automatically because they qualify but have not applied for other loan forgiveness programs, such as Public Service Loan Forgiveness.
Borrowers who have been making payments towards their undergraduate student loans for at least 20 years would be allowed to have any remaining debt erased, along with those repaying graduate school loans for 25 years or longer.
The plan would forgive debt for those who were in college programs considered to have “low financial value.” It’s meant to help those who were in programs that ended up becoming ineligible to receive federal student aid or programs found to have deceived students.
A final category would erase debt for borrowers facing financial difficulty.
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