President Joe Biden revealed new regulations on July 31 that expand the pool of individuals qualified for student loan debt forgiveness. These regulations, if approved, would increase the number of eligible borrowers for debt relief to over 30 million.
“We are taking significant steps today to eliminate student debt for approximately 30 million Americans,” stated President Biden. “Our commitment to assisting student loan borrowers, fixing the flawed student loan system, and alleviating the burden of student debt remains steadfast.”
Commencing on Aug. 1, the Education Department will send notifications via email to all borrowers with federal student loans, informing them of potential debt relief and the deadline of Aug. 30 to opt out if they are not interested. However, receiving the email does not guarantee eligibility.
The finalization of these rules in the fall will build upon the administration’s efforts to provide $168 billion in student loan relief to almost 4.8 million borrowers. If the rules are implemented as proposed, the number of borrowers eligible for student loan relief will surpass 30 million, encompassing those already approved for relief.
Education Department Secretary Miguel Cardona emphasized, “These latest measures represent a significant milestone in our mission to assist millions of borrowers burdened by student loan interest, those who have been repaying loans for over twenty years, and others who have been financially impacted by college programs.”
The administration initially introduced draft rules in April to grant additional student loan debt relief to millions of borrowers nationwide. These rules, once finalized, will enable Cardona to offer partial or full debt relief to borrowers who owe more than their initial repayment amount, those in repayment for over 20 years, those eligible for loan forgiveness but have not applied, and those enrolled in low-value programs.
The Education Department assured that if the rules are approved, eligible borrowers will automatically receive the proposed relief. Borrowers who wish to opt out of the relief program must contact their servicer by Aug. 30, with no option to rejoin the program.
Under the Biden–Harris administration, significant funds have been allocated for various relief programs, including Public Service Loan Forgiveness, income-driven repayment adjustments, assistance for borrowers affected by school closures, total and permanent disability discharges, and the SAVE Plan.
President Biden affirmed, “Since day one of my administration, I have been committed to ensuring that higher education is a pathway to the middle class, not a barrier to opportunity. I will continue to strive for affordable higher education and work to deliver for the American people.”
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