What you need to know about President Biden’s new student loan forgiveness plan

It’s been four months since the Supreme Court blocked President Joe Biden’s plan to forgive up to $20,000 in student debt for most people with federal loans. Now, the administration has come out with a new, very different student debt relief plan.

It’s still in the early stages and will need to go through a whole rule-making process, but if some version of it is finalized, it could offer a new path to loan forgiveness for a lot of people.

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“It’s the White House trying to take another bite at apple from a different angle where they might have surer footing from a legal perspective,” said Betsy Mayotte at the nonprofit Institute of Student Loan Advisors.

It will likely be about a year — maybe a little less, maybe little more — before anything is finalized, she said. “This is not a done deal, and the proposals could change significantly before it is a done deal.”

Plus, any final rule could be challenged in court, Mayotte added.