What’s in the Biden student loan forgiveness plan that Kamala Harris touted in Philly Monday

As President Joe Biden and Vice President Kamala Harris visit vital swing states ahead of primary elections — including a stop in Philadelphia from Harris — the White House announced a new plan for student loan relief.

If approved and implemented, the administration says its new plan to forgive student loan debt could bring relief to about 30 million Americans.

» READ MORE: Vice President Kamala Harris, in Philly, promotes student debt relief plan

It marks Biden’s second attempt to implement widespread student debt forgiveness after the U.S. Supreme Court rejected his first attempt in June. The court ruled that Biden’s plan overstepped presidential duties and needed congressional approval. Still, the administration says more student loan debt has been canceled during Biden’s tenure than under any other president, with $138 billion in student loan debts for roughly 4 million borrowers waived.

The new plan offers targeted relief for specific groups of borrowers, particularly people who have carried debt over long periods and borrowers who have struggled to make payments. Regardless of income, the plan aims to relieve borrowers holding high-interest balances.

Here’s what we know.

Biden’s plan is aimed at four groups of borrowers:

Several student loan programs have been retooled under the Biden administration, but borrowers have to apply. According to the White House, more than 2 million eligible borrowers haven’t applied for relief.

Under the newly proposed plan, the Department of Education would use existing data to identify qualifying borrowers and automatically credit their accounts.

“Too many borrowers eligible for relief — including immediate cancellation — have historically not been able to overcome paperwork requirements, bad advice, or other obstacles,” the department said in a statement.

A main point of the new plan is a goal to target something the Education Department calls “runaway interest,” when a person owes more in student loans now than they initially borrowed because of high interest rates.

More than 25 million borrowers owe more in student loans now than they borrowed, according to the White House.

Additionally, low and middle-income borrowers enrolled in an income-driven repayment plan would have all their interest forgiven.

Last time, Biden’s proposal hinged on the Higher Education Relief Opportunities for Students Act of 2003 and made the argument that the COVID-19 pandemic was a national emergency that should allow the secretary of education to relieve the hardships student loan recipients may face.

In contrast, the Washington Post reported that the Biden administration is basing its new plan on the 1965 Higher Education Act, allowing the education secretary to compromise, waive, or release loans under certain circumstances.

According to the White House, the Biden administration has been working with the Department of Education and going through the rule-making process and negotiations. Once the plan’s draft is finalized, the department will issue a formal proposal.

From there, a one-month public comment period will take place before it can take effect. Officials also expect legal challenges from Republicans, which could slow down the process, as noted by the New York Times. Still, the goal is to implement at least “some” provisions by “early fall,” with loan forgiveness in place before the general election.