The President has been under YUGE pressure to just forgive chucks of loans….
It appears that his people are taking a more comprehensive track to the problem , which has political implications for Biden…..
The Biden administration on Wednesday announced several new proposed changes to the federal student loan system, including measures that help discharge loans for physically and mentally disabled borrowers, limit interest capitalization rates, and help borrowers working as public service employees to earn forgiveness on their loans.
In a statement unveiling the proposed expansion of student loan discharge programs, the Department of Education said it expected to finalize a full plan by Nov. 1, with the aim to have the changes take effect no later than July 1.
Secretary of Education Miguel Cardona said in the statement that proposed changes “will protect borrowers and save them time, money, and frustration, and will hold their colleges responsible for wrongdoing.”
“We are committed to fixing a broken system. If a borrower qualifies for student loan relief, it shouldn’t take mountains of paperwork or a law degree to obtain it,” Cardona said in a statement. “Student loan benefits also should not be so hard to get that borrowers never actually benefit from them.”
The Biden administration has so far canceled nearly $26 billion for more than 1.3 million borrowers since taking office, much of which included loans obtained by borrowers who were defrauded by their college or had their school close down before they could complete their education.
The changes proposed for the federal student loan systemon Wednesday would make it easier for borrowers to file and pursue claims of predatory practices by colleges. The proposed rules would also help students who enrolled in schools 180 days prior to a school closure and who didn’t complete their education to more easily discharge the loans…