The Biden administration is making another attempt to forgive student debt for tens of millions of Americans after the Supreme Court struck down its initial effort last year.
In the next few days, the U.S. Department of Education will start emailing borrowers who might be eligible for this broad loan cancellation, aiming to provide relief by the fall, possibly just weeks before the 2024 presidential election.
“Today, the Biden-Harris administration takes another step forward in our drive to deliver student debt relief to borrowers who’ve been failed by a broken system,” said U.S. Secretary of Education Miguel Cardona.
For borrowers who want to opt out of debt forgiveness, they must notify their loan servicer by August 30, according to the Education Department.
Who Might Qualify for Debt Forgiveness?
Borrowers likely to qualify for partial or full debt erasure include those who owe more now than they did at the start of repayment and those who have been paying on their loans for decades.
New Strategy After Supreme Court Ruling
On the same day, the Supreme Court blocked President Joe Biden’s first attempt at sweeping student loan forgiveness, and he announced a new plan to deliver relief. Initially, the president attempted to cancel the debt through executive action. This time, he directed the Education Department to use the regulatory process, which experts believe might have a better chance of withstanding legal challenges.
The Education Department is expected to publish its final rule on debt relief in October. Wednesday’s announcement suggests the agency is prepared to act quickly once the rule is in place, said higher education expert Mark Kantrowitz.
“Undoubtedly, the Biden Administration will be ready to go as soon as the final rule is published, but Republicans may also be ready to file a lawsuit,” Kantrowitz commented.
It was a lawsuit from six GOP-led states — Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina — that led to the downfall of Biden’s first loan forgiveness plan.
Kantrowitz also mentioned that the emails might be a strategy by the Biden team to show borrowers what is at stake in the election. “It shows the borrowers what they stand to lose if Republicans win,” he said.
Rep. Virginia Foxx, R-N.C., criticized the latest development, stating, “The Biden-Harris administration continues to dangle loan ‘forgiveness’ in front of millions of borrowers across the nation. This is just another illegal scheme intended to buy votes in November.”
