The U.S. Department of Education (ED) released an updated copy of proposed regulatory text in its pursuit towards student debt relief.
After the Supreme Court rejected initial student debt cancellation efforts, the Biden-Harris administration began pursuing another debt relief plan that involves negotiated rulemaking with student loan stakeholders, one that involves three such rulemaking sessions this year.
The third will take place Dec. 11-12, and ED plans to discuss the updated regulatory text with the non-federal stakeholders there. Once the sessions are complete, ED will draft rules that will be up for public comment next year.
“The Biden-Harris Administration has already secured a total of $127 billion in debt relief for 3.6 million borrowers through a variety of actions, but we know there are so many hardworking Americans and families out there who still need help,” said U.S. Secretary of Education Dr. Miguel A. Cardona. “Student loans are supposed to be a bridge to a better life, not a life sentence of endless debt. This rulemaking process is about standing up for borrowers who’ve been failed by the country’s broken student loan system and creating new regulations that will reduce the burden of student debt in this country.”
The updated regulatory text proposes varying amounts of relief regarding borrowers facing balance growth due to interest that is outpacing repayments; borrowers who entered repayment approximately 20 years ago; and borrowers who are making repayments for schools failing to provide enough financial value.
Members of the public who register can view the December session and give public testimony – public comment will take place on the first day.