New guidelines for student loan debt forgiveness announced by Biden administration

The Department of Education revealed President Joe Biden’s latest plan for student loan debt forgiveness, aiming to bring relief to over 30 million borrowers.

The proposal was officially announced in the Federal Register, initiating a 30-day public comment period as part of the federal rulemaking process.

Biden’s initial endeavor to fulfill his campaign promise of widespread student loan debt forgiveness in 2022 was halted by a 6-3 Supreme Court ruling in August. The new plan seeks to utilize the Higher Education Act to provide relief through established financial assistance programs for colleges and universities, instead of executive action.

The draft outlines nine rules allowing for different types of waivers under the authority of the secretary of education, as mentioned in an Education Department news release. These rules address department-held loans and commercially held loans within the Federal Family Education Loan Program.

The proposed plan, announced by Biden on April 8, includes provisions to eliminate up to $20,000 in interest for more than 25 million borrowers who owe more than their original loan amount. Eligibility extends to those enrolled in specific repayment plans, offering relief based on income levels.

Despite the positive response from borrowers, seven state attorneys general, led by Missouri’s Andrew Bailey, filed a lawsuit against the new proposal on April 9, citing concerns about its potential costs to taxpayers.

“What’s frightening is that we have a lawless president who is openly disregarding the authority of the Supreme Court,” Bailey expressed in an interview with Newsmax.

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