Biden Administration Floats Student Loan Relief for Borrowers Facing Hardship

Published On Oct 25, 2024, 4:48 PM

The Biden administration has proposed a new student debt relief plan aimed at assisting eight million borrowers who face significant financial hardships that prevent them from repaying their loans. This proposal seeks to enable the Education Department to cancel loans under circumstances of severe financial strain, such as unexpected medical expenses or loss of income. While aiming to address issues stemming from the rejection of a previous, more sweeping $400 billion plan by the Supreme Court, this new proposal is expected to face legal challenges from Republican states, who argue it exceeds the Department's legal authority.