President Biden Announces New Student Debt Relief Plan

President Biden yesterday announced his new plan for student loan debt that would provide relief to millions of Americans, including NTEU members.

More than 25 million borrowers owe more than they originally borrowed, including many who have made years of payments, due to the interest that accrues on federal student loans. The administration will cancel up to $20,000 of the amount a borrower’s balance has grown due to unpaid interest on their loans after entering repayment, regardless of their income. No application will be needed for NTEU members or other borrowers to receive relief if this plan is finalized as proposed. 

Too many borrowers eligible for relief—including immediate cancellation—have historically not been able to overcome paperwork requirements, bad advice, or other obstacles. While the administration has worked to make it easier to apply for relief, the proposed plans would automatically cancel debt for borrowers otherwise eligible for relief through Public Service Loan Forgiveness, the SAVE plan, closed school loan discharges, or other forgiveness opportunities but who have not successfully applied for that assistance.

NTEU will continue to work to keep our members informed of loan forgiveness or relief programs they are eligible for, including agency-based programs won through NTEU collective bargaining.