The Biden administration on Friday unveiled a brand new proposal to supply student loan forgiveness to Americans facing “devastating financial hardship.”
The qualification rules are vague, but examples of a hardship that would make a borrower ineligible for the help include potential financial ruin brought on by a borrower Natural disasteror an enormous, unexpected medical bill.
Some borrowers could see the loan relief routinely, while others would likely must apply for it, an Education Department official told reporters in a phone call Thursday.
“Far too long, ours broken student loan system “It has become too difficult for borrowers who have fallen into heartbreaking and financially devastating hardship to access relief, and that is not right,” Education Secretary Miguel Cardona said in a press release Friday.
The announcement was the newest attempt by the Education Department under President Joe Biden to forgive people's education debt.
Biden has canceled more student debt than another president in history. But his most ambitious plans have up to now been blocked by legal challenges from Republicans.
Under this latest proposed rule, which is able to almost definitely face more such lawsuits, nearly 8 million student loan borrowers facing severe hardship might be eligible for relief.
The loan cancellation could affect borrowers “who have ongoing financial burdens that prevent them from repaying their student loans” and who will not be fully helped by the department’s existing assistance options, the official said.
The proposed regulations might be published within the Federal Register inside a couple of weeks. The Biden administration hopes to finalize the policy in 2025.
However, the department's previous attempts to supply large-scale student loan forgiveness are currently being blocked by the courts after Republicans led a wave of legal challenges.
The consequence of the presidential election in November can be more likely to play a task within the fate of those aid measures.
Former President Donald Trump has been a vocal critic of measures to scale back or cancel the balances of student loan holders. Democratic Vice President Kamala Harris supports the measures.
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