5 things to know about Bidens new student loan plan [Video]

President Biden announced a new student loan plan on Monday that would help millions of Americans have their debt forgiven in his latest attempt to provide relief to borrowers. 

Biden announced a plan focused in large part on borrowers with so-called “runaway interest” who owe more money than they did at the start of repayment.

The plan, if finalized, would likely go into effect this fall, but it risks being legally challenged by Republicans who don’t back student debt relief that could add to the millions of people who have already seen some debt relief under the Biden administration’s executive plans.

Here are five things to know about Biden’s new proposal.

More than 25 million borrowers impacted

The plans would give relief to 25 million borrowers who owe more money than they did at the start of repayment because of the interest rate on federal student loans. If the plan is finalized, it would cancel up to $20,000 of the …