Biden’s new plan could give student loan relief to many new borrowers

Biden’s new plan could give student loan relief to many new borrowers

President Joe Biden will announce his latest effort to broaden student loan relief next week for new categories of borrowers, according to three people familiar with the plans, nearly a year after the Supreme Court foiled his administration’s first attempt to cancel debt for millions who attended college.

Biden will detail the plan Monday in Madison, Wisconsin, where the flagship campus of the University of Wisconsin is located. The actual federal regulations—outlining who would qualify to get their student loan debt reduced or eliminated—are not expected to be released then, said the people, who were granted anonymity to detail a proposal not yet made public.

Much of the specifics that Biden will discuss Monday have long been telegraphed through a negotiated rulemaking process at the Department of Education, which has worked for months to hash out the new categories of borrowers. The president announced immediately after the Supreme Court decision that Education Secretary Miguel Cardona would undertake the process because he would have the power under the Higher Education Act to waive or compromise student loan debt in specific cases.

Still, the effort seeks to make good on Biden’s promise after the Supreme Court struck down his initial plan in June, a $400 billion proposal to cancel or reduce federal student loan debt that a majority of justices said required congressional approval. Biden called that decision a “mistake” and “wrong.”

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