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Biden tries again at student loan cancellation, for those in financial hardship (abcnews.go.com)

submitted 1 week ago by [email protected] to c/[email protected]

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The Biden administration is moving ahead with a new path to student loan cancellation for Americans who face steep medical bills, child care costs and other types of financial hardship that prevent them from repaying their loans.

Announced Friday, the proposed rule is President Joe Biden's third attempt at student loan cancellation as he faces repeated legal challenges from Republican states. His first plan was rejected by the Supreme Court last year, and his second plan has been temporarily halted by a federal judge in Missouri.

The new rule would have to clear a number of hurdles before it becomes official, and it's unclear if it could be realized before Biden leaves office in three months. Like Biden's other loan forgiveness proposals, it could face court challenges from conservatives who say it's unconstitutional and unfair.

If finalized, the new rule would allow the Education Department to proactively cancel loans for borrowers if the agency determines they have an 80% chance of being in default on their loans within two years. Others could apply for a review to determine if they meet the criteria for cancellation.

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[–] [email protected] 45 points 1 week ago (7 children)

I benefited from a federal loan cancellation due to hardship this past March. 35k in Staffords - poof. It was amazing.

[–] [email protected] 1 points 1 week ago (1 children)

I'm curious, what was your degree? Have you found work in your field at all?

[–] [email protected] 1 points 1 week ago

Graduated >10 years ago with an engineering degree, and worked in an industry that was nailed really hard by Covid. The career was… pretty close to my field, but accepted many different engineering degrees.

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