In an earlier post, we shared information about the new student debt relief plan that President Biden announced on April 8, 2024. The Department of Education later published proposed regulations for most of the new plan. You can now see the full details of how the Biden Administration is proposing to provide relief to borrowers in the following categories:
- Borrowers who have had their balances balloon with interest and now owe more than they did when they began repayment;
- Borrowers who have been trapped in debt for two decades or more;
- Borrowers have missed out on debt cancellation programs that they are eligible for; and
- Borrowers who took out debt for certain low-value or closed programs.
Under the proposed regulations, millions of borrowers who owe more now than they originally borrowed would have some or all of the amount their balance has grown due to interest canceled. These borrowers would not have their full debt canceled, but their debt would be reduced.
Borrowers in the other three categories could have their debts fully canceled. This includes borrowers who entered repayment on or before July 1, 2005 (or July 1, 2000 for those who borrowed for graduate school) and borrowers who are eligible for existing loan cancellation programs but who have been blocked by red tape.
As of April 24, 2024, the Administration has not yet released proposed regulations for providing relief to borrowers whose financial hardship prevents them from being able to pay back their loans in full; it says those are still coming.
How do I share my thoughts about the new debt relief plan?
Anyone may submit comments on the proposed student debt relief plans by May 17, 2024. Borrowers and those who work with borrowers may wish to submit comments in support of the proposal and can do so at regulations.gov. You can also share your thoughts on the new plan with us on our Share Your Story page. NCLC may include what we hear from borrowers in our comments to the Department of Education.
NCLC shares stories about borrower issues with policymakers on a regular basis. Share Your Story here.