Biden-Harris Administration Moves Forward with Student Debt Relief Negotiated Rulemaking to Deliver Support to as Many Borrowers as Possible as Quickly as Possible | U.S

Biden-Harris Administration Propels Student Loan Debt Relief Forward as Promptly and Broadly as Possible

The Biden-Harris administration has taken yet another decisive stride towards providing student loan debt relief to a large number of beneficiaries as quickly as possible through...

Targeted Relief Under the Higher Education Act

The Biden-Harris administration has significantly advanced its efforts to provide student debt relief to as many people as possible through its negotiated rulemaking under the Higher Education Act. This comes despite threats of a government shutdown by certain extreme House Republicans, which would negatively impact families, communities, and the economy as a whole.

The U.S. Department of Education has unveiled an issue paper detailing its initial set of policy considerations for creating a pathway to student debt relief. Primarily, it raises five questions regarding various categories of affected borrowers on which it's soliciting feedback. The points under consideration encompass borrowers with outstanding debt greater than their original loans, those with loans first entered into repayment decades ago, individuals who benefited from insufficient financial value programs, those eligible for relief under programs like income-driven repayment but haven't applied, and debtors going through financial hardship without adequate support from the existing student loan system.

A Pioneering Approach to Repair a Broken System

"We've taken unprecedented steps to fix our broken student loan system and provide record quantities of student debt relief," declared U.S. Secretary of Education Miguel Cardona. By carefully proceeding through the regulatory process, the Biden-Harris administration aims to push for debt relief for an even greater number of borrowers. To tailor this relief, Cardona announced that the administration has analyzed over 26,000 public comments, pledging commitment to borrowers and ensuring that student debt doesn't restrict anyone's pursuit of the American dream.

Student Loan Relief Committee's Role

The first meeting of the Student Loan Relief Committee is set to discuss the debt relief issue paper on October 10 and 11. The group includes non-federal negotiators from 14 impacted constituencies, and a negotiator from the Department of Education. The Department will use this committee to continue fine-tuning its regulatory text, with the committee also scheduled to meet in November and December.

Upon the draft rules being published next year, the public will have the opportunity to contribute their written comments. The Department has also released the list of individuals who will serve on the negotiating committee.

Continued Support for Borrowers

The work done by the Biden-Harris Administration to improve the student loan program and make higher education more affordable includes approving $117 billion in relief for more than 3.4 million borrowers. The administration has also launched the SAVE Plan, marking the most affordable student loan repayment plan to date, enacted the largest increase to Pell Grants in a decade, and proposed a roadmap to double the maximum Pell Grant and make community college free, thereby aiming to increase college affordability and decrease unnecessary student debt.

The administration remains devoted to ensuring student debt does not obstruct students' goals of attaining a college degree or future planning. They are also holding institutions accountable for burdensome debts and have proposed regulations to establish standards for earnings and debt outcomes for career programs, strengthening transparency across all programs to provide students with necessary information for informed decisions.