The Biden administration is moving ahead with a new path to student loan cancellation for Americans who face steep medical bills, child care costs and other types of financial hardship that prevent them from repaying their loans.
Announced Friday, the proposed rule is President Joe Biden’s third attempt at student loan cancellation as he faces repeated legal challenges from Republican states. His first plan was rejected by the Supreme Court last year, and his second plan has been temporarily halted by a federal judge in Missouri.
The new rule would have to clear a number of hurdles before it becomes official, and it’s unclear if it could be realized before Biden leaves office in three months. Like Biden’s other loan forgiveness proposals, it could face court challenges from conservatives who say it’s unconstitutional and unfair.
If finalized, the new rule would allow the Education Department to proactively cancel loans for borrowers if the agency determines they have an 80% chance of being in default on their loans within two years. Others could apply for a review to determine if they meet the criteria for cancellation.
I benefited from a federal loan cancellation due to hardship this past March. 35k in Staffords - poof. It was amazing.
I’ll have you know I toughened up, pulled myself up by the bootstraps, and paid off a $25k loan over the span of eight or so years
…and I’m still glad people are getting loan forgiveness because I don’t want other people to have to go through the BS I did. Congrats!
Wicked! I’m glad some people are benefitting from it.
How dare you benefit from it when other people aren’t! You’re required to suffer because other people didn’t get theirs. And if they did get theirs, you’re required to suffer anyway because you weren’t good enough.
I think that’s how it’s supposed to work anyway.
That’s awesome! my wife didn’t qualify unfortunately (lucky it’s not a big amount of money) but I’m glad there are people who do and they are getting what they deserve. This should help so many out there that are in a tough position. This is what tax money should be used for, along with infrastructure, medieval bills, education, and any other thing that benefits us as a whole.
Oof, our tax money is definitely funding a lot of medieval bills :(
I’m curious, what was your degree? Have you found work in your field at all?
Graduated >10 years ago with an engineering degree, and worked in an industry that was nailed really hard by Covid. The career was… pretty close to my field, but accepted many different engineering degrees.