For ads-free news, click here.
In its final weeks, President Biden’s Department of Education is pushing a rule to grant student loan forgiveness for 8 million borrowers facing financial hardship.
The proposal would authorize one-time forgiveness for those with an 80% or higher default risk based on predictive data. It also allows current and future borrowers to apply for relief through a “holistic assessment” of their financial hardship.
Higher education negotiated rulemaking began in 2023, with this rule discussed in committee as early as November. However, it wasn’t formally proposed until October 31 and is now in a public comment period set to close on December 2, according to a Fox News Digital report.
“For far too long, our broken student loan system has made it too hard for borrowers experiencing heartbreaking and financially devastating hardships to access relief, and it’s not right,” said U.S. Secretary of Education Miguel Cardona. “The rules proposed by the Biden-Harris administration today would provide hope to millions of struggling Americans whose challenges may make them eligible for student debt relief.”
Despite court rulings striking down previous attempts to cancel student debt, the Biden administration continues pushing efforts to eliminate debt in its final weeks. In 2023, Biden introduced the “SAVE” plan to reduce debt obligations based on borrowers’ financial situations. However, the Supreme Court blocked the plan, ruling he lacked authority under a 2003 law to forgive hundreds of billions in debt. Other student debt relief initiatives remain stalled in court.
The Dennis Michael Lynch Podcast archive is available below. Never miss an episode. Subscribe to the show by downloading The DML News App or go to Apple Podcasts.
