Biden administration unveils next steps in student loan forgiveness for 25 million borrowers

The Department of Education announced on Wednesday that it would be contacting 25 million student loan borrowers to inform them about next steps they can take to pay down their debt.

The new plan comes after the Biden administration already helped relieve the financial burden for nearly five million borrowers in one of the earlier phases.

The administration said that the final rules on the latest forgiveness plan will be announced in the fall, but that they are notifying borrowers in advance so they can opt out of the plan by Aug. 30.

"These rules, if finalized as proposed, would bring the total number of borrowers eligible for student debt relief to over 30 million, including borrowers who have already been approved for debt cancellation by the Biden-Harris Administration over the past three years," the department said in a news release.

The email will go out to every person who has at least one outstanding federally held student loan, but receiving the email does not automatically make a person eligible for forgiveness.

The plan is expected to largely help people who have "runaway interest," meaning they owe more now than they did when they took out the loans, according to Fox Business.

The Biden administration has attempted mass forgiveness of student loans in the past, including through the Saving on a Valuable Education plan, which was an income-driven plan that came after the Supreme Court decided last year to strike down a previous plan that forgave up to $20,000 in student loans for millions of borrowers.

Misty Severi is an evening news reporter for Just The News. You can follow her on X for more coverage.