WASHINGTON D.C. – The Biden administration announced on Monday a plan to revive its student loan forgiveness program, after facing legal challenges and political hurdles. The program, which was originally unveiled in August 2022, would have canceled up to $20,000 in federal student loan debt for millions of Americans. However, it was blocked by lawsuits from Republican-led states, arguing the program was illegal.
The new plan will focus on providing relief for borrowers who qualify under specific income limits, according to administration officials. It will also expedite the process for borrowers with certain types of disabilities to have their loans discharged.
“This is about making sure that we are doing everything we can to help people get back on their feet, particularly those who have been struggling with student debt,” said Education Secretary Miguel Cardona. “We are confident that this new approach will be successful in providing relief to those who need it most.”
The administration’s revised plan comes as the pause on federal student loan payments is set to expire in October. This pause was initially implemented during the COVID-19 pandemic to provide borrowers with some financial relief.
The plan faces criticism from some who argue it does not go far enough. “The administration is still leaving millions of borrowers behind,” said Seth Frotman, executive director of the Student Borrower Protection Center. “They should be providing comprehensive relief, not just a Band-Aid solution.”
The administration is expected to face further legal challenges to its revised plan. However, officials remain optimistic that the program will ultimately be successful in providing relief to borrowers.
