Biden admin shares proposal for new student debt relief plan

Source: Axios

17 mins ago


The Biden administration on Tuesday released a draft of its new plan to provide student debt relief to millions of borrowers.

The big picture: Biden has continuously promised to find ways to deliver more student loan forgiveness after the Supreme Court blocked his sweeping debt cancellation plan last year.

The administration has so far doled out $153 billion in student debt relief to 4.3 million people through various actions, and the new plan, if approved, would increase that aid to help more than 30 million borrowers.

U.S. Secretary of Education Miguel Cardona said in a statement the administration is fulfilling "our promises to fix a broken higher education system."

"Student loan forgiveness isn't only about relief for today's borrowers," he added. "It's about social mobility, economic prosperity, and creating America that lives up to its highest ideals."

Between the lines: The new plan relies on the legal authority of the Secretary of Education under the Higher Education Act, which contrasts with the COVID-era HEROES Act Biden attempted to use for his first plan that was ultimately struck down by the high court.

Read more: https://www.axios.com/2024/04/16/student-loan-relief-plan-biden-proposal

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Link to Department of Education PRESS RELEASE - Biden-Harris Administration Releases First Set of Draft Rules to Provide Debt Relief to Millions of Borrowers