Biden puts the cancellation of school credits on the table again
Story by Mi Bolsillo US • 15h
The Biden administration is taking a step forward with a new proposal to alleviate the burden of student loans for Americans grappling with financial hardships. Announced on Friday, this initiative represents President Joe Biden's third attempt to address the student debt crisis, following previous setbacks in the courts. The plan aims to provide relief to borrowers facing high medical costs, childcare expenses, or other financial challenges that hinder their ability to repay their loans.
Legal challenges from Republican-led states have previously thwarted Biden's efforts, with the Supreme Court rejecting his first plan and a federal judge in Missouri temporarily blocking the second. The administration remains undeterred, however, as it seeks to implement a solution that could offer much-needed relief to millions of Americans burdened by student debt.
The proposed rule would empower the Department of Education to proactively cancel loans for borrowers deemed to have an 80% likelihood of defaulting within two years. This proactive approach could significantly impact those with unexpected medical expenses, high childcare costs, or financial difficulties stemming from natural disasters. Additionally, individuals could request a review to determine their eligibility for loan cancellation, potentially broadening the scope of relief available.
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