(PartiallyPolitics.com) – The Department of Education published on Wednesday the latest plan for student loan forgiveness by President Joe Biden.
The Federal Register published the proposal which would help provide relief to over 30 million borrowers. Following its publishing there is a 30-day period in which they can make public comments as part of the federal rulemaking process.
The first attempt by Biden to fulfill his student loan forgiveness campaign promise was unveiled in 2022 and would have allowed all those individuals who had an annual income under $125,000 to receive up to $20,000 in relief. However, in August the Supreme Court opted to strike down the plan in a 6-3 ruling following a lawsuit brought forward by six GOP state attorneys general.
The Higher Education Act, which was created to provide financial help programs in universities and colleges, is being used by the administration for the implementation of the new proposal. This means that unlike with his previous action in 2022, Biden is now not using executive action which could potentially make it harder for the proposal to be struck down.
As part of the proposal draft, there are nine rules which are permitting separate and distinct waiver types using the authority of the secretary of education under the Higher Education Act. According to the Department of Education, eight have applied to loans that the department has held, and a ninth addresses the Federal Family Education Program loans that are commercially held.
On April 8, Biden announced the proposal which could cancel up to $20,000 in interest for over 25 million people.
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