Biden administration looks to expand student loan forgiveness to those facing ‘hardship’

WASHINGTON (AP) — Americans who are struggling to repay federal student loans because of financial hardship could get some of their debt canceled under President Joe Biden’s latest proposal for widespread loan forgiveness.

Several categories of borrowers would be eligible for relief under Biden’s second try at widespread cancellation after the Supreme Court rejected his first plan last year. Those with older loans or large sums of interest are being targeted for relief, for example. On Thursday, the Education Department expanded its proposal to include those who face financial hardship.

The plan was expanded amid pressure from advocates and Democrats who said the proposal didn’t do enough for struggling borrowers who don’t fit into one of the other cancellation categories.

Whether any of the relief will materialize is a looming question as conservatives vow to challenge any attempt at mass student loan cancellation. The proposal is now going through a rulemaking process that’s expected to take months to finalize, and a legal challenge is almost certain.

<bsp-list-loadmore data-module="" class=«PageListStandardB» data-gtm-region=«READ MORE» data-gtm-topic=«No Value» data-show-loadmore=«true» data-gtm-modulestyle=«List B»> <bsp-custom-headline custom-headline=«div»> READ MORE </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> Biden administration failed to vet adults housing migrant children, federal watchdog says </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> The Biden administration announces $970 million in grants for airport improvements across the US </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> Putin says Russia prefers Biden to Trump, calling the US president