Biden's new student loan relief plan would slash debt for millions

• Since then, the administration has found ways to deliver relief to millions of borrowers by using its existing authority and circumventing the need for Congressional or court approval.

Driving the news: Under the new plan, the administration would cancel up to $20,000 of a borrower's accrued interest, regardless of income, the White House said in a statement Monday.

• In addition, low-and-middle income borrowers — single people making less than $120,000 or couples making less than $240,000 — enrolled in an income-driven repayment plan would have all of their interest forgiven.
• No application will be required to receive the relief, the statement added.
• If the plan is implemented as proposed, the Biden administration estimates it will "fully eliminate" accrued interest on 23 million borrowers' unpaid balances.
• The plan would also wipe out the full amount of debt owed by 4 million Americans and give partial relief of at least $5,000 to more than 10 million additional borrowers.

Context: The Education Department has been working on a proposal to replace the one that the Supreme Court dashed last year, the White House said.

• Under the new plan, four sets of borrowers are automatically eligible for relief: borrowers who have seen their balances grow beyond what they originally borrowed; those who took out loans that are in repayment for over 20 years; borrowers who are eligible for relief but haven't applied; and those whose college or program didn't deliver sufficient financial value.

Go deeper:

• What's going on with student loan relief
• How student loan forgiveness factors into your tax bill
• How Biden forgives student debt despite the Supreme Court ruling