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.
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Those who could be eligible include people with unexpected medical bills, high child care costs, heavy costs related to caring for relatives with chronic illnesses, and those struggling financially in the wake of natural disasters, the Education Department said. With about 1 million borrowers in default every year, Cardona said the new rule would prevent his agency from trying to collect money it’s unlikely to recoup.
Vice President Kamala Harris, the Democratic nominee, has not detailed her plans for student debt cancellation if she wins the presidency. Republican nominee Donald Trump has called Biden’s cancellation proposals unfair and illegal.that included experts from across higher education. Advocates pushed hard for the hardship provision, saying too many borrowers get trapped with debt they’ll never be able to repay.
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