Student loan forgiveness is back in the national conversation
Image: Drew Angerer/Getty
Later today, President Biden is expected to announce a series of new proposals aimed at wiping out large amounts of federal student loan debt held by Americans who fall under certain categories, according to multiple reports.
If at first you don’t succeed… The expected proposals come just under a year after the Supreme Court struck down the Biden administration’s original $400 billion student loan forgiveness program, which aimed to cancel at least $10,000 in debt for 40+ million US borrowers.
Try, try again: The new regulations will require borrowers to fall into specific categories to receive an unspecified amount of debt relief – a strategy the Biden admin says has stronger legal footing than its previous failed attempt at forgiving student loans on a nationwide scale.
These categories reportedly include:
- Borrowers whose loan balance is now bigger than the amount originally borrowed due to interest.
- People who can demonstrate financial hardship that impedes them from repaying their student loans.
- Those who have been paying down their student loans for at least 20-25 years (depending on the type of loan).
- Borrowers who went to for-profit college programs deemed “low-value” based on average salaries for graduates.
Zoom out: Outside of its failed attempt at mass student loan forgiveness, the Biden admin has moved forward with more narrow student debt forgiveness for ~4 million Americans since 2021, totaling nearly $144 billion.
👀 Looking ahead… After the proposed regulation is released this week, the Education Department will collect additional public comments and issue a final rule in the coming months.
- Once the rule is finalized, it’s widely expected to face legal challenges from Republican attorneys general, who will again try to convince the courts to block it.
📊 Flash poll: Do you agree with the Biden admin’s new plan to forgive an unspecified amount of student loan debt for American borrowers who meet specific criteria?
See a 360° view of what media pundits are saying →
Sprinkles from the Left
- Some commentators argue that unfortunately, Biden’s second attempt at mass student loan forgiveness will very likely end up facing the same result as his initial attempt – aka being struck down after Republicans challenge the policy in court.
- Others contend that the US should seriously consider implementing a student loan forgiveness program modeled after the Post-9/11 GI Bill for students who work in the public sector following their academic studies.
- “There’s a better way to tackle America’s student debt crisis” –Kelli Rhee, CNN
- “Let's Forgive Student Loans in Exchange for Public Service” –Jeffrey Roth, Newsweek
- “Biden has done much to relieve student debt, but he can do more” –Sens. Chuck Schumer (D-NY) and Elizabeth Warren (D-MA)
Sprinkles from the Right
- Some commentators argue that federal student loans have myriad issues, but allowing borrowers to renege on their obligations isn’t the way to solve them, since it’ll only exacerbate the problem and set up taxpayers for an expensive repeat down the road.
- Others contend that Biden’s recent attempts to forgive student loan debt after the SCOTUS decision are a blatant attempt to buy the votes of younger Americans and debt holders ahead of the November election.
- “White House works around court ruling” –Las Vegas Journal-Review Editorial Board
- “Biden’s Desperate Student-Loan-Relief Giveaway” –National Review Editorial Board
- “Biden a not-so-quiet benefactor for student borrowers” –Boston Herald Editorial Board
Share this!
Recent Discussion stories
Discussion
  | April 5, 2024What to know about the upcoming solar eclipse
🌒 This Monday, some parts of the US will experience total darkness as the Moon travels in front of the Sun, marking a rare celestial event that won’t happen again until 2044.
Discussion
  | April 4, 2024Are smartphones to blame for the “Anxious Generation” ?
🧠📲 Younger Americans today are in the midst of a mental health crisis. And, while experts haven’t reached a consensus, many think it’s related to the rise of smartphones and social media.
Discussion
  | March 28, 2024SCOTUS is considering the legality of abortion pills
⚖️ SCOTUS heard arguments in a case challenging the FDA improperly approved the abortion pill mifepristone, marking its first abortion case since overturning Roe v. Wade.
You've made it this far...
Let's make our relationship official, no 💍 or elaborate proposal required. Learn and stay entertained, for free.👇
All of our news is 100% free and you can unsubscribe anytime; the quiz takes ~10 seconds to complete