The Biden administration is proposing a new plan to forgive student debt, months after the Supreme Court struck down President Joe Biden’s sweeping pandemic-era debt relief plan in June.
The Education Department on Monday released a student debt relief proposal that would target four categories of borrowers: those with federal student loan balances that exceed the original borrowed amount; those with loans that entered into repayment 25 years ago or more; those with loans for career training programs that led to “unreasonable debt loads or provided insufficient earnings”; and those who are eligible for forgiveness under other repayment plans but have not applied for it.
The Department also said it is considering student debt relief for a fifth group of borrowers “experiencing financial hardship that the current student loan system does not currently adequately address.”