Biden administration says student loan handouts could be on the way for 25 million Americans

The Biden administration has begun to email millions of Americans who took out student loans to notify them that a handout might be on their way - months before the presidential election is set to take place.

Fox Business reported that all federal student loan borrowers should receive an email stating that ”they have until August 30 to call their servicer and opt out if they do not want this relief.”

”These rules, if finalized as proposed, would bring the total number of borrowers eligible for student debt relief to over 30 million, including borrowers who have already been approved for debt cancellation by the Biden-Harris Administration over the past three years,” the Department of Education said in a statement.

The Department of Education, if the proposed rule is approved, would impact borrowers impacted by so-called “runaway interest,” when more money is owed now versus during the beginning of the repayment period.

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The rule would ”permit automatic relief of up to $20,000 of the amount by which a borrower’s loans currently exceed what they owed upon starting repayment.”

Another proposed rule would allow the Department of Education to ”forgive the full amount by which a borrower saw their balance grow after entering repayment if the borrower is enrolled in any Income-Driven Repayment plan and has annual income equal to or below $120,000 if they are single or $240,000 if they are a married couple that files taxes jointly.” 

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An additional proposed rule would impact ”an estimated 2.6 million borrowers who still have outstanding debt on old loans that entered repayment at least two decades ago.”