Five kinds of borrowers could see assistance from the Department.

Borrowers with debt exceeding what they initially began with. Americans who owe more than they originally borrowed can see $20,000 of unpaid interest wiped from their balance. Those who make less than $120,000 a year, or couples making less than twice that, qualify for complete forgiveness on their interest. Borrowers would still be responsible for the principal amount.
Borrowers paying off debt for at least two decades. Undergraduates who've been paying off loans for 20 years, or graduate credential earners who entered repayment 25 years ago, can qualify for full forgiveness. This could potentially erase loans for up to 2 million people, AP News reports.
Those facing particular hardship. Individuals considered at high risk of defaulting on their loans or incurring other burdensome debts can have their debts canceled.
Borrowers who haven't enrolled in preexisting loan forgiveness programs for which they're qualified.
Borrowers who attended "low-value" academic programs. Students who attended institutions that the Department has deemed cheated students, "lost eligibility to participate in Federal student aid programs" or have disproportionately low incomes compared to their student debt are eligible for forgiveness.

The timeline for loan forgiveness

While some officials hope that some provision can go into as early as this fall, the formal proposal won't be announced for the "coming months," AP reports. Following the proposal would be a 60-day public comment period. If the rules were to be finalized in November, they wouldn't truly take effect until July 2025. Such a time window doesn't lend itself too well with the upcoming November presidential election; Donald Trump could easily scrap the plan if he were to assume power.

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