President Biden plans on Monday to announce a large-scale effort to help pay off student loans for tens of millions of American borrowers in Wisconsin, seeking an election-year boost by going back on a promise blocked by the Supreme Court last year.
White House officials said Sunday that the president’s plan would reduce the amount 23 million borrowers still owe on their undergraduate and graduate loans. It would wipe out the entire amount for more than four million Americans. They said 10 million borrowers will see debt relief of $5,000 or more.
“Today’s announcement shows that we continue to fulfill our promises,” Miguel Cardona, the education minister, told reporters Sunday night. “We’re providing as much relief as possible, for as many borrowers as possible, as quickly as possible.”
Mr. Biden was due to announce the plan in a speech in Madison, Washington, as other members of his administration rushed to other cities to do the same. Vice President Kamala Harris will appear in Philadelphia on Monday. Mr. Cardona was traveling to New York.
If Mr. Biden can implement the new plan before the November election, it may help rally support among voters who were bitterly disappointed that the president failed his first plan, which would have eliminated debts of up to $20,000 for tens of millions of borrowers.
But the president faces steep hurdles in the legal system and the calendar. The new plan will require a month-long public comment period before it goes into effect. Officials said on Sunday that only some of the provisions would go into effect in the “early fall” of this year.
Officials also expect legal challenges from Republicans, which could take months to resolve. That could leave the plan in limbo as voters head to the polls in November to choose between Mr. Biden and former President Donald J. Trump.
Administration officials hope the president’s supporters will give him credit for the effort. Since the Supreme Court blocked the first attempt, the White House has used existing regulations to write off $138 billion in student loan debt for about four million borrowers.
The new plan is more far-reaching than those efforts, but officials said it was more targeted than the original effort and based on a different law, making it more likely to survive expected challenges.
“President Biden will use every tool available to cancel student loan debt for as many borrowers as possible, no matter how many Republican officials stand in his way,” said White House press secretary Karin Jean-Pierre.
The plan targets five groups of people with student loans for different levels of relief.
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People whose loans have grown beyond the amount they originally borrowed due to interest would have had up to $20,000 of that interest written off, leaving them to repay only the amount they originally borrowed. Individuals making less than $120,000 a year, or couples making less than $240,000, will qualify to have all of their interest forgiven. Officials said 23 million people likely would have been exempt from this provision all interest-related balances.
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About two million borrowers who already qualify for student loan forgiveness under existing programs have not applied for relief. Under the new rules, the Department of Education will be empowered to cancel the debt for these people without them having to apply.
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Those who took out federal student loans for undergraduate degrees and began repaying them more than 20 years ago would have the debt automatically canceled under the new plan. Graduate students who borrowed money and began repaying it 25 years ago would have their debt cancelled. Officials said about 2.5 million people would qualify under this rule.
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People who borrowed money to attend colleges that have since lost their accreditation or eligibility to participate in the federal student aid program will have their debt canceled. Officials did not say how many people this would affect.
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People who are particularly burdened with other expenses — such as high medical debt or child care — could apply to have their student loans forgiven. Officials did not estimate how many people might qualify for what they called “hardship” programs.
