Connect with us

Finances

Biden administration releases draft text of student loan forgiveness

Published

on

Spread the love

Advertisement

U.S. President Joe Biden speaks as he announces a new plan for federal student loan relief during a visit to Madison Area Technical College Truax Campus, in Madison, Wisconsin, U.S, April 8, 2024. 

Kevin Lamarque | Reuters

Advertisement

What’s changed in the draft rules

At an April 8 event in Madison, Wisconsin, Biden said his new relief plan targets specific borrowers, including those who:

  • Are already eligible for debt cancellation under an existing government program but haven’t yet applied
  • Have been in repayment for 20 years or longer on their undergraduate loans, or over 25 years on their graduate loans
  • Attended schools of questionable value
  • Are experiencing financial hardship

The Biden administration also said that, if its new plan is enacted as proposed, borrowers will get up to $20,000 of unpaid interest on their federal student debt forgiven, regardless of their income.

The draft text echoes much of that announcement. However, the Education Dept. left out, for now, the group of borrowers experiencing financial hardship from its relief plan.

Advertisement

The Department said it will release a second draft rule concerning people in this situation “in the coming months.”

This is breaking news. Please check back for updates.

Advertisement
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *