When Biden was running for office and was elected in 2021, he promised to cancel student debt. He was going to provide student loan forgiveness to the millions of Americans that were drowning in thousands of dollars in debt. 

In his first attempt he tried to cancel at least $10,000 of student loan debt for people that make less than $125,000 a year. Students that received federal Pell grants would be eligible to receive an addition $10,000 in loan forgiveness. Associated Press said that it would cost $400 billion and cancel debt for over 40 million people. However, the Supreme Court rejected the plan in 2023.

President Biden attempted to keep his promise by going through a different approach through the Higher Education Act. According to the Congressional Research Service, the Higher Education Act (HEA) allows federal aid programs that aim to support individuals pursuing higher education. Specifically, he is most likely looking at Title IV under the HEA which has to do with student assistance like federal Pell grants, student loans, federal work-study programs, etc.

The HEA can allow the secretary of education to forgive student loan in some circumstances. It has made the Education Department (ED) to reevaluate what authority the secretary has exactly and if they have the power to do that. 

President Biden’s new plan involved categorizing those in student loan debt. It targets those who are in need the most. The widest scale this loan forgiveness reaches in forgiving interest that has grown larger than the originally borrowed amount. 

The new plan would also help those who are eligible for federal forgiveness programs but never applied because of confusion. They must understand that some of this financial assistance is not easy to navigate. 

Borrowers who have been repaying their undergraduate loans for 20 years or more, or 25 years for graduate school loans, then they will cancel all the debt the borrower have accumulated. 

Individuals who went to college and participated in programs that have since yielded little results and have not made a dent in their debt may be eligible for loan forgiveness. And lastly people who are experiencing circumstances that impact their ability to repay their student loan debt may receive some student loan forgiveness. 

The cancellation of debt will most likely happen automatically for most people. But if an individual wants to plead their case of why they cannot pay off their debt then they will most likely have to apply to explain their circumstance.