The Harris-Biden administration unveiled its latest effort student loan debt cancellation On Friday, new rules were introduced that would wipe the slate clean for millions of borrowers facing “persistent financial burdens.”
approximately 8 million debtors “Experience Difficulty” Will be eligible for the program, which authorizes the Secretary of Education to “forgive the entire outstanding balance of a student loan” when it is determined that the borrower is unlikely to repay it.
Education Secretary Miguel Cardona said in a statement, “For too long, our broken student loan system has made it too difficult for borrowers facing heartbreaking and economically devastating hardships to get relief, and that’s right. Not there.”
“The rules proposed today by the Biden-Harris Administration will provide hope to millions of struggling Americans whose challenges may make them eligible for student loan relief,” Cardona said.
The Harris-Biden administration defines “persistent financial burden” that qualifies an individual as “unexpected medical bills, higher child care costs, significant expenses related to the care of loved ones with chronic illnesses, or devastating economic circumstances from the effects of Will allow to do. A natural disaster.”
The Department for Education acknowledges that “many borrowers can and do recover from these types of difficulties”.
Under the proposed rules, the Education Department will provide two avenues for loan cancellation.
The first route would allow the Education Secretary to “grant individual, automatic relief without an application” to borrowers with an 80% chance of defaulting within two years.
The second pathway “will allow current and future groups of borrowers to receive relief based on a holistic assessment of the borrower’s hardship and will be primarily application-based.”
The Education Department says both of these pathways will “support student loan borrowers for generations to come.”
House Education and Workforce Committee Chairwoman Virginia Foxx (R-NC) described the Harris-Biden administration’s latest student loan forgiveness effort as “abandoned” and an attempt to “bribe voters” less than two weeks before Election Day.
“Surprise, surprise, we’re eleven days away from the election, and the Biden-Harris administration has announced yet another sham plan to shift the responsibility for paying for college from those who didn’t take out loans,” Fox said in a Said. statement.
He said, “The latest blatant effort to bribe voters is the hallmark of a desperate administration that has squandered its chance to enact meaningful, lasting reform on the cost of college.” “Biden, Harris and Cardona should be ashamed of themselves.”
The Harris-Biden administration has has already been canceled Despite several Republican-led lawsuits seeking to block the recovery of approximately $175 billion in student loan debt.
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