Biden Administration Announces Plan for Student Loan Forgiveness Amid Financial Hardship

Biden Administration to Implement Student Loan Forgiveness for Borrowers in Financial Hardship

The Biden administration announced on Wednesday that it will try to deliver student loan forgiveness to borrowers experiencing financial hardship.

Following the Supreme Court’s rejection of President Joe Biden’s executive order to cancel up to $20,000 in student debt for tens of millions of Americans, the administration has been exploring alternative methods to provide debt relief within the confines of existing legal authority.

Referred to as Biden’s Plan B for student loan forgiveness, the president has turned to the rulemaking process to achieve his goal.

During three rulemaking sessions, negotiators were tasked with determining the eligibility criteria for the revised relief plan. They devised several groups of borrowers who would qualify, including those with loan balances surpassing their initial borrowing amount and students from potentially substandard educational institutions.

However, the Biden administration has faced pressure to extend assistance to borrowers in financial hardship.

“While we appreciate the efforts of the Department and the negotiating committee, we are concerned that, without fully considering the cancellation of debts for borrowers facing financial hardship, the proposed rule will not adequately relieve the most vulnerable individuals,” wrote lawmakers such as Senator Elizabeth Warren (D-Mass.) in a letter to U.S. Secretary of Education Miguel Cardona on January 24.

Please note that this is breaking news. We will provide updates as they become available.

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