NASHVILLE, Tenn. (WTVF) — A new proposal aims to make life a little easier for millions of people struggling to pay off student loan debt. President Joe Biden announced the plan that could affect thousands of people in Tennessee.
He says the latest proposal would affect about 30 million Americans.
"I will never stop to deliver student debt relief for hardworking Americans and it's only in the interest of America that we do it. And again, it's for the good of our economy," President Biden said during the announcement.
There are about 889,000 people in Tennessee with federal student loan debt, according to the U.S. Department of Education. On average, they owe more than $36,000 each.
This new plan would target specific groups of borrowers for relief. It includes people who have been paying for at least twenty years, people whose loans exceed the amount they originally borrowed because of interest, and those who already qualify for relief but haven't applied.
It also notes that borrowers must have attended colleges that are considered "low financial value," and a hardship program for people with other expenses like medical debt or childcare.
Republicans are expected to challenge the plan. They argue it shifts these debts to taxpayers, that it's unfair to people who already paid off their loans and it doesn't address the fast-rising costs of higher education. The White House says the debt must be addressed now.
"We really have to do something about that crisis right now, at the same time that we look towards the future and try to create reforms to the system so that we don't end up in this position again," said Jon Donenberg with the National Education Council.
The average student borrows over $30,000 to pursue a bachelor’s degree. Private student loan debt averages more than $54,000 per borrower.
This plan requires a public comment period before it can take effect.
In February, the U.S. Department of Education announced cancellations that impacted over 3,000 borrowers in Tennessee.
They had $25 million forgiven.
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