President Joe Biden unveiled his administration's latest plan to relieve some of the $1.77 trillion in student loan debt owed by Americans.
Under the new proposal unveiled on Monday (April 8), over four million borrowers who have been paying their loans for 20 years or more could see their debt wiped clean, while additional 10 million get relief of at least $5,000. The plan also seeks to eliminate interest past the original loan amounts for 23 million borrowers.
The new plan comes after the Supreme Court shut down a previous attempt to clear billions of dollars in student loan debt.
The White House expects to post the final regulations in the coming months and believes they will be upheld by the courts. They aren't expected to take effect until next summer.
"This plan builds off the actions the Biden-Harris Administration has already taken to prevent the negative effects of excessive interest accrual on student loans going forward by eliminating all interest capitalization not required by law. The SAVE Plan does not charge unpaid interest for borrowers who make their monthly payments, and has canceled interest for at least 4.5 million borrowers to date," the White House said in a statement announcing the new proposals.