Biden's New Student Loan Forgiveness Plan: What You Need to Know

Targeted interest deductions of up to $20,000 for certain borrowers enrolled in the proposed plan.

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About 25 million people are covered under the loan facility. About 23 million potentially had their entire unpaid interest waived.

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An additional 2 million borrowers could have their loans automatically canceled if existing forgiveness programs apply.

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The plan also addresses debt accrued from career training programs with high debt-to-income ratios.

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Eligibility includes the discontinued FFEL program benefiting borrowers with loans originated before July 1, 2000.

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Commercial FFEL borrowers may be eligible for relief if schools face closings.

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The terms of each category of relief will be outlined in an upcoming formal rule.

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You can also get relief for high medical debt or child care.

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Biden's plan is seen as an important step toward addressing student debt for millions of Americans.

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