The Biden-Harris Administration Unveils Initial Draft Rules for Debt Relief to Massive Group of Borrowers

The Biden-Harris Administration has unveiled its initial draft regulations aimed at granting student debt relief to numerous borrowers nationwide. The announcement comes after President Biden’s declaration in Madison, Wisconsin last week. If these proposals come to fruition, they would extend assistance to over 30 million borrowers under the Administration. Since taking office, the Biden-Harris Administration has overseen debt forgiveness for approximately 4.3 million borrowers, totaling $153 billion in relief through various initiatives.

“The latest announcement illustrates the Administration’s commitment to rectifying the flaws within the higher education system,” stated U.S. Secretary of Education Miguel Cardona. “Debt forgiveness goes beyond helping current borrowers; it promotes social mobility, economic prosperity, and the realization of America’s core values.”

The proposed rules will be officially published in the Federal Register on Wednesday, April 17, initiating a 30-day period for public comments. The U.S. Department of Education plans to carefully review feedback received, with the aim of finalizing the regulations by fall to begin implementing relief. Additionally, a subsequent draft rule focusing on aiding distressed borrowers will be published in the near future.

Cancelling runaway interest

More than 25 million borrowers find themselves owing more than their initial loan amounts due to accruing interest on Federal student loans over the years.

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