Biden's next round of student loan forgiveness will be granted to these 4 groups of borrowers.

• It is predicted that the Biden administration will pardon the student debt of numerous borrowers in October.
• If the plan survives legal challenges, the four groups that may benefit from partial or full debt relief are:

The Biden administration is set to forgive the student debt of millions of borrowers, with experts predicting that the relief could be announced in October. New guidance has been issued on eligibility criteria.

President Biden's latest attempt at student loan cancellation involves a revised forgiveness plan that is more targeted, with the hope that it will withstand legal challenges.

Eligible borrowers will be notified soon as the Department finalizes the plan details.

After the rules are finalized, 30 million Americans will experience the life-changing impact of student debt cancellation, according to Aissa Canchola Bañez, policy director at the Student Borrower Protection Center.

The four groups that may gain from partial or complete debt relief if the plan survives future legal challenges are:

1. Borrowers who owe more than at start of repayment

According to Department of Education guidance, those with Direct or other Education Department-held loans and a current balance greater than when they entered repayment may be eligible for up to $20,000 in loan forgiveness. The amount of relief they'll receive will depend on the growth of their balance.

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The Education Department is likely to compare borrowers' current balance to the total principal and interest they owed when they started paying off their debt whenever that occurred.

Individuals earning under $120,000 and married couples filing jointly with an income of up to $240,000 may have their entire debt amount, including principal and interest, forgiven under income-driven repayment plans.

2. Those already eligible for relief

The Education Department could also absolve the debt of numerous borrowers who meet the criteria for relief but have not yet enrolled in the appropriate program or submitted an application.

Consumer advocates assert that many student loan borrowers are unaware of the relief options available to them, including income-driven repayment plans and the Public Service Loan Forgiveness program.

3. People who have been paying for many years

Eligibility for aid is likely if you have only undergraduate student loans and began repayment before July 1, 2005.

According to the Education Department, those with only graduate loans or a mix of undergraduate and graduate debt must have begun repayment on or before July 1, 2000.

The Education Department will investigate the initial entry of underlying loans for those who have consolidated their loans.

4. Attendees of troubled schools

The Education Department may cancel some or all of the debt of borrowers who attended schools that lost federal funding, closed suddenly or provided low financial value, the agency announced.