U.S. President Joe Biden’s Student Loan Forgiveness Plans Withdrawn
The Biden administration has withdrawn two major plans to deliver student loan forgiveness, a move that could have reduced or eliminated the education debts of millions of Americans. The proposed regulations would have allowed the secretary of the U.S. Department of Education to cancel student loans for several groups of borrowers, including those who had been in repayment for decades and others experiencing financial hardship.
The Education Department posted notices in the Federal Register on Friday, stating that it was terminating the rulemaking proceeding due to “operational challenges in implementing the proposals.” The department will instead “commit its limited operational resources” in these final weeks of the administration “to helping at-risk borrowers return to repayment successfully.”
The move is seen as a blow to millions of Americans who were counting on the forgiveness plans to alleviate their student loan debt. Higher education expert Mark Kantrowitz noted that the Biden administration knew the proposals would have been thwarted by the incoming Trump administration, which is a vocal critic of student loan forgiveness.
Despite the setback, consumer advocates remain hopeful that other forms of student loan forgiveness are still available. The Education Department still offers a wide range of student loan forgiveness programs, including Public Service Loan Forgiveness and Teacher Loan Forgiveness. Additionally, the department has announced that it will forgive another $4.28 billion in student loan debt for 54,900 borrowers who work in public service.
Borrowers can search for more federal relief options at Studentaid.gov and can also check The Institute of Student Loan Advisors’ database of student loan forgiveness programs by state. Despite the withdrawal of the forgiveness plans, many are still holding out hope that some form of relief will be available in the future.
