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Biden is withdrawing his broader student-loan forgiveness plans that were set to cancel debt for over 38 million borrowers
The Education Department posted notices to withdraw its plans to cancel student debt for over 38 million borrowers. The withdrawal notices were for two of the department's unfinished debt relief rules. The first rule was Biden's Plan B for broader debt relief after the Supreme Court struck his first plan down in the summer of 2023. The second rule was a proposal to provide relief to borrowers facing financial hardship.
In the notices to withdraw the unfinished rules, the Education Department said it is focused on helping student-loan borrowers manage the remaining elements of the return to repayment that began last year following the pandemic pause.
The department said that withdrawing these regulations will give future stakeholders the flexibility to craft new forms of relief, especially with the uncertainty the incoming administration brings. Trump has previously criticized broad relief and is unlikely to continueBiden's efforts.
The department also said that the withdrawal of these rules is not a result of the questions surrounding their legality, saying that it believes the relief "is authorized by the Secretary's longstanding and existing authority" under the Higher Education Act.
Biden's Plan B for student-loan forgiveness would have benefited over 30 million borrowers. It proposed full or partial relief for categories including borrowers with unpaid interest and those who have made at least 20 years of payments. While the rule was never finalized, a group of GOP-led states filed a lawsuit in September to block its implementation.
Meanwhile, the Education Department proposed a separate rule in October to provide relief to 8 million borrowers facing financial hardship. Those categories would have included borrowers facing challenges with childcare or medical expenses.
The Education Department did not immediately respond to a request for comment from Business Insider on the debt relief withdrawals.
Biden is still pursuing other avenues for debt relief before his term is up. On Friday, his administration announced an additional $4.28 billion in debt relief for 54,900 borrowers in Public Service Loan Forgiveness — a result of ongoing improvements to the program. Despite not being able to pass broad relief, Biden, over the course of his term, has provided relief to nearly 5 million borrowers through changes to various programs.
Some Republican lawmakers lauded the withdrawal of the plans. Sen. Bill Cassidy, the top Republican on the Senate education committee, said in a Friday statement that Biden's "student loan schemes were always a lie."
At the same time, some advocates criticized the GOP-led challenges to Biden's relief efforts. Persis Yu, deputy executive director of the advocacy group Student Borrower Protection Center, said in a statement that Biden's plans "would have freed millions from the crushing weight of the student debt crisis and unlocked economic mobility for millions more workers and families."
"We are deeply grateful to President Biden for the work he did to fight for the 40 million borrowers trapped in student debt," Yu said.
www.businessinsider.com
- Biden's administration posted notices to withdraw its broader student-loan forgiveness plans.
- The Education Department wrote that it still stands by the legality of the debt relief among lawsuits.
- The plans aimed to cancel some student debt for over 38 million borrowers.
The Education Department posted notices to withdraw its plans to cancel student debt for over 38 million borrowers. The withdrawal notices were for two of the department's unfinished debt relief rules. The first rule was Biden's Plan B for broader debt relief after the Supreme Court struck his first plan down in the summer of 2023. The second rule was a proposal to provide relief to borrowers facing financial hardship.
In the notices to withdraw the unfinished rules, the Education Department said it is focused on helping student-loan borrowers manage the remaining elements of the return to repayment that began last year following the pandemic pause.
The department said that withdrawing these regulations will give future stakeholders the flexibility to craft new forms of relief, especially with the uncertainty the incoming administration brings. Trump has previously criticized broad relief and is unlikely to continueBiden's efforts.
The department also said that the withdrawal of these rules is not a result of the questions surrounding their legality, saying that it believes the relief "is authorized by the Secretary's longstanding and existing authority" under the Higher Education Act.
Biden's Plan B for student-loan forgiveness would have benefited over 30 million borrowers. It proposed full or partial relief for categories including borrowers with unpaid interest and those who have made at least 20 years of payments. While the rule was never finalized, a group of GOP-led states filed a lawsuit in September to block its implementation.
Meanwhile, the Education Department proposed a separate rule in October to provide relief to 8 million borrowers facing financial hardship. Those categories would have included borrowers facing challenges with childcare or medical expenses.
The Education Department did not immediately respond to a request for comment from Business Insider on the debt relief withdrawals.
Biden is still pursuing other avenues for debt relief before his term is up. On Friday, his administration announced an additional $4.28 billion in debt relief for 54,900 borrowers in Public Service Loan Forgiveness — a result of ongoing improvements to the program. Despite not being able to pass broad relief, Biden, over the course of his term, has provided relief to nearly 5 million borrowers through changes to various programs.
Some Republican lawmakers lauded the withdrawal of the plans. Sen. Bill Cassidy, the top Republican on the Senate education committee, said in a Friday statement that Biden's "student loan schemes were always a lie."
At the same time, some advocates criticized the GOP-led challenges to Biden's relief efforts. Persis Yu, deputy executive director of the advocacy group Student Borrower Protection Center, said in a statement that Biden's plans "would have freed millions from the crushing weight of the student debt crisis and unlocked economic mobility for millions more workers and families."
"We are deeply grateful to President Biden for the work he did to fight for the 40 million borrowers trapped in student debt," Yu said.
Biden is withdrawing his broader student-loan forgiveness plans that were set to cancel debt for over 38 million borrowers
It's officially the end of the road for Biden's attempts to broadly cancel student debt.
www.businessinsider.com
if you could do that, everyone would just graduate college, and declare bankruptcy the day after graduation. it doesnt mean shyt at 22 anyway. if you've been paying loans for 10 years, you should be able to bankrupt them
if he is actually forgiving people by the tens of thousands regularly and randomly, it stands to reason he is keeping his promise. If the Supreme Court did not take flimsy cases, the broad forgiveness would have been done.