visimoney
TLDR:
President Joe Biden and his administration are working on providing student debt relief to borrowers through an amendment to the Higher Education Act. The rulemaking committee has identified five groups of borrowers who may be eligible for debt relief, including those experiencing financial hardship. The proposed regulations include 17 factors that could qualify borrowers for relief due to financial hardship. The final rule could go into effect as early as July 2025.
Article Summary:
In a continued effort to provide student debt relief, President Joe Biden’s administration is amending the Higher Education Act to offer forgiveness to various groups of borrowers. One key group identified for potential debt relief includes those experiencing financial hardship. The rulemaking committee agreed on 17 factors that could qualify borrowers for relief due to financial hardship, such as household income, assets, repayment status, and student debt balance relative to income. The proposed draft regulatory text will soon be open to public comment before becoming law, allowing the Secretary of Education to waive federal student loan debts for borrowers facing significant financial challenges. The final rule is expected to go into effect by July 2025.
