On Monday, President Joe Biden announced a second attempt at federal student loan forgiveness. The new plan, which is estimated to affect over 30 million borrowers when combined with earlier efforts, aims to enact widespread loan cancelation primarily by expanding existing forgiveness programs and targeting borrowers with high balances due to accumulating interest.
The Biden administration's first attempt at large-scale federal student loan forgiveness was struck down by the Supreme Court last year in Biden v. Nebraska. The plan, unveiled in 2022, sought to provide up to $20,000 in federal student loan forgiveness for borrowers earning less than $125,000 a year and couples earning less than $250,000 annually.
