Scenario # 1
The Biden administration announced a sweeping new federal student loan forgiveness program to borrowers who have government-held loans. Under the plan first announced in August, President Joe Biden's one-time student loan cancellation initiative would provide up to $20,000 in federal student loan forgiveness for borrowers. The Education Department suggested that up to 40 million borrowers would be eligible for relief, with up to half of those borrowers becoming completely debt-free.