The Biden-Harris administration has announced new proposed regulations to expand student debt relief, potentially impacting around 8 million borrowers facing financial hardship.
The proposal, introduced by the U.S. Department of Education, would allow the Secretary of Education to forgive loans in cases where borrowers are unlikely to repay due to severe hardship or where continued collection costs are deemed unjustified.
“For far too long, our broken student loan system has made it too hard for borrowers experiencing heartbreaking and financially devastating hardships to access relief, and it’s not right,” said Education Secretary Miguel Cardona.
The proposed rules, developed through a negotiated rulemaking session in early 2024, outline two pathways for relief: automatic loan forgiveness based on predictive data for at-risk borrowers and an application-based process for those with persistent financial struggles. If finalized, the new rules would ensure lasting support for some of the most financially vulnerable Americans, including many Pell Grant recipients.
This initiative comes as the Biden-Harris administration continues to press forward with efforts to alleviate student debt despite significant opposition from MAGA Republicans and setbacks imposed by the U.S. Supreme Court. In previous moves to support students and families, the administration secured a $900 increase to the maximum Pell Grant award — the largest in a decade — and established protections against career programs that leave graduates with unsustainable debt.
In addition to these efforts, nearly 5 million borrowers have already received debt relief through various targeted programs. The measures include:
- $74 billion for over a million borrowers under Public Service Loan Forgiveness (PSLF), up from just 7,000 approvals at the start of the Biden administration
- $56.5 billion for over 1.4 million borrowers under income-driven repayment plans, which addressed past administrative issues and improper forbearance practices
- $28.7 billion for more than 1.6 million borrowers who attended schools that engaged in fraudulent practices or abruptly closed
- $16.2 billion for close to 572,000 borrowers with permanent disabilities.
The Department of Education’s new proposal aims to provide two types of pathways to relief. The first would enable automatic forgiveness for borrowers identified through data-driven assessments as likely to default within the next two years. The second, an application-based option, would evaluate individual cases where hardship remains unaddressed by other repayment options.
The department plans to publish these regulations in the Federal Register in the coming weeks and open a 30-day comment period on regulations.gov. The department aims to finalize the regulations in 2025, broadening debt relief options and providing vital support for millions of student borrowers.
“President [Joe] Biden, Vice President [Kamala] Harris, and I will not stop fighting to deliver student debt relief and create a fairer, more just, and more affordable student loan system for all borrowers,” Cardona stated.
As the Democratic presidential nominee, Harris said she is continuing work “to end the unreasonable burden of student loan debt and fight to make higher education more affordable.”