Biden Administration Proposes Expanded Student Debt Relief

The new proposal targets borrowers facing financial hardship, aiming to automatically cancel debt for those highly likely to default.

The Biden administration has unveiled a proposal to expand student debt cancellation for borrowers experiencing financial hardship.
The plan includes automatic debt relief for borrowers deemed at least 80 percent likely to default within the next two years.
Criteria for determining financial hardship include income, debt balance, repayment history, and essential expenses like healthcare.
The proposal is part of a broader effort to address student loan challenges, following the Supreme Court's rejection of a previous cancellation plan.
The Education Department will hold a public hearing on the proposal, with plans to release final regulations for public comment in May.