New Student Debt Relief Plan Announced

This week, President Biden announced a new plan for student loan debt.

More than 25 million borrowers now owe more than what they originally borrowed, due to the interest accrued on their federal student loans. The administration outlined canceling up to $20,000 of the amount a borrower’s balance growth due to unpaid interest on their loans after entering repayment, regardless of income. No application will be needed for NTEU members or other borrowers to receive relief if this plan is finalized as proposed. 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.

Too many eligible for debt relief—including immediate cancellation—have historically not been able to overcome paperwork requirements, bad advice, or other obstacles.

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