President Biden highlights new plans to cancel student loan debt at Madison College

 

MADISON, Wis. (CBS 58) -- President Joe Biden highlighted new plans to cancel student debt for millions of Americans at college campus in Madison Monday.

The series of proposals largely target accrued and capitalized interest on student loans. For example, individuals who are paying more than their original loan could see some relief under the plan unveiled earlier in the day.

During his speech, President Biden tried to sell his student loan forgiveness plan that would eliminate debt for more than 4 million borrowers and provide up to $5,000 to more than 10 million borrows, according to the White House.

"Too many people feel the strain and stress of wondering if they can get married, have their first child or start a family because even if they get by, they still have this crushing, crushing debt," Biden said to a crowd at a gymnasium on the Madison Area Technical College campus.

President Biden's plan, if implemented, would also benefit individuals who began paying undergraduate, graduate loans at least 20 or 25 years ago, respectively; eligible participants in the "SAVE" and Public Service Loan Forgiveness programs who have yet to apply, and those who can prove their facing financial hardships and are unable to pay back their loans.

It's the latest push by the Biden administration to wipe out student loan debt after previous attempts were challenged by Republican-led states who argued the administration overstepped its authority.

In June, the U.S. Supreme Court rejected the president's proposal that would have canceled up to $20,000 in student debt for 43 million eligible borrowers.

This latest effort would also have to clear several hurdles before anyone sees relief.

President Biden, who campaigned on student loan relief during his 2020 bid, blamed Republicans who blocked his original proposal and said his administration will "continue to find alternatives to reduce student debt payments."

Biden also tied his plan to his overall economic agenda to reduce inflation and expand apprenticeship programs to help fill high-demand jobs.

"We need more qualified people doing this work to bring back manufacturing," said Biden. "If we do this the economic gains will far outweigh the costs."

During a press call with reporters, Wisconsin Republicans criticized the effort and argued Biden's student debt proposal wouldn't help rebuild the economy.

"You need a strong economy to produce good paying jobs to have these kids actually pay off their loans without transferring that debt burden on those who never went to college," said Senator Ron Johnson (R-WI).

The president's visit comes about a week after former President Donald Trump held a rally in Green Bay. It was Trump's first trip to the battleground state since announcing his third White House bid.

The Madison event marked Biden's third visit this year.