US President Joe Biden Seeks to Deliver Widespread Student Loan Forgiveness as Term Comes to a Close
With just weeks left in his term, President Joe Biden has continued to work towards delivering student loan forgiveness to millions of Americans through a revised plan. The US Department of Education has submitted its “Plan B” to the Office of Management and Budget (OMB) for review, which is the final step before it is published in the Federal Register.
The plan targets several groups of borrowers, including those who have been in repayment for decades or attended schools that defrauded them. The Education Department may also try to clear the loans of those experiencing financial hardship through a second rule under OMB review.
Despite Republican-led legal challenges, Biden has already forgiven more student debt than any other president, affecting nearly 5 million people. However, consumer advocates expect new lawsuits to seek an immediate injunction against Biden’s latest forgiveness plans as soon as they are published in the Federal Register.
Senator Bernie Sanders and other lawmakers have also urged the Department of Education to forgive the debt of borrowers who have applied for relief after being defrauded by their colleges, citing the need to process pending borrower defense applications of an estimated 400,000 borrowers.
The Education Department may also try to clarify the loans of those with persistent financial burdens that prevent them from repaying their student loans. The department’s existing aid options do not fully help these borrowers, according to an Education Department spokesperson.
Time is running out, and with President-elect Donald Trump and his administration set to take over, consumer advocates are urging Biden to deliver relief to student loan borrowers as quickly as possible to prevent millions from suffering for years to come.
