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Sources: Biden to Discuss New Student Loan Forgiveness Plan in Wisconsin on Monday

Sources: Biden to Discuss New Student Loan Forgiveness Plan in Wisconsin on Monday

MADISON, Wisconsin — President Joe Biden is set to make a significant policy announcement during his visit to the Badger State on Monday. 

Sources familiar with the White House’s plans confirm that Biden will discuss the framework for a new major student loan forgiveness plan.

The stakes are high, as Wisconsin remains a crucial battleground state in the upcoming election.Wisconsin, home to several major universities, has been grappling with the burden of student loan debt.

As tuition costs continue to rise, borrowers face mounting financial pressure.Biden’s visit to Madison, the state capital and an academic hub, underscores the urgency of addressing this issue.

The backdrop for this new proposal is the Supreme Court’s ruling last year.

In June 2023, the court struck down the Biden administration’s initial loan forgiveness plan, which aimed to wipe out over $400 billion in federal student loan debt. 

The program would have provided relief to millions of borrowers, including those making less than $125,000 a year and Pell Grant recipients.

Unlike the sweeping plan that faced legal challenges, this new initiative takes a more nuanced approach. 

Borrowers falling into specific categories— such as those experiencing financial hardship or carrying debt that has ballooned due to interest—will be eligible for relief.

The White House believes this targeted strategy strengthens their legal footing.

Danielle Alvarez, a spokesperson for the Department of Education, emphasized the importance of public input. 

The department engaged in listening sessions with stakeholders, ensuring a well-justified regulatory approach.

“We’ve learned from past experiences,” Alvarez said. “This time, we’re focused on precision.”

Miguel Cardona, U.S. Secretary of Education, echoed this sentiment: “If you’ve been paying for a decade, you’ve done your part, and you deserve relief.”

The administration aims to strike a balance between fiscal responsibility and compassion.

​As President Biden steps up to the podium in Madison, all eyes will be on him.