The new proposal aims to tackle issues that are seen as some of the biggest culprits behind skyrocketing debt.FILE - Biden speaks on student loan debt forgiveness, in the Roosevelt Room of the White House, Oct. 4, 2023, in Washington. 3:39 PM CDT October 30, 2023
Though full details are likely months away, the department says it wants to provide relief to — borrowers whose balances exceed what they originally owed; those who have loans that entered repayment 25 or more years ago; those who used loans to attend career-training programs that led to “unreasonable” debt loads or insufficient earnings; those who are eligible for other loan forgiveness programs but did not apply.
It would help counter interest that snowballs beyond borrowers' original balances. It would offer relief to borrowers who attended for-profit college programs with poor outcomes. It would also help older borrowers who took out loans decades ago and may otherwise never repay their debt. The latest attempt rests on the Higher Education Act of 1965, a wide-reaching law that gives the education secretary power to “compromise, waive or release” certain debts. But the law is unclear on how the secretary can wield that authority, creating a legal gray area that has been the subject of debate since Biden took office.
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