SBPC Urges ED to Swiftly Release Final Package of Rules and Enact Much-Needed Relief for Borrowers
July 31, 2024 | WASHINGTON, D.C. — Today, the Biden-Harris Administration announced its next step towards swiftly providing student loan debt relief to tens of millions of borrowers this fall. While the U.S. Department of Education (ED) works to finalize its first package of debt relief rules, ED unveiled plans to proactively update borrowers on the status of debt relief and the opportunity to opt out of receiving relief by August 30, 2024.
Today’s announcement sheds light on the critical progress the Administration has made to finalize its debt relief rules utilizing authority under the Higher Education Act and the plans underway to ensure that millions of borrowers will be able to swiftly benefit from this relief when enacted.
In response, Student Borrower Protection Center Policy Director Aissa Canchola Bañez released the following statement:
“We applaud the Biden-Harris Administration for taking the next step in finalizing plans to deliver debt relief to millions of student loan borrowers and proactively setting up a process for borrowers to opt out of relief. These plans make clear that the Administration is working diligently to ensure debt relief can be implemented as swiftly as possible. Once these rules are finalized, 30 million Americans will get to benefit and experience the life-changing impact of student debt cancellation. ED must work as quickly as possible to get this done.”
Today’s announcement is about the first package of proposed debt cancellation rules that would provide relief for borrowers in specific circumstances, including:
- Borrowers eligible for debt relief under an Income-Driven Repayment Plan, Public Service Loan Forgiveness, or other relief programs but who are not enrolled;
- Borrowers crushed by runaway interest;
- Borrowers who have been stuck in repayment for over 20 years; and
- Borrowers who have attended low-value programs or schools.
Earlier this summer, more than 22,330 borrowers and 239 national, state, and local organizations submitted comments as part of the 30-day public comment period in support of ED’s proposed rules and called for the Administration to implement this relief as swiftly as possible. In the near future, the Administration is expected to unveil its proposed rules to support borrowers experiencing hardship.
Further Reading
SBPC email with background on the full student debt relief Neg Reg: What Happened in Neg Reg: Hardship Session
SBPC’s statement after ED release of hardship proposal: https://protectborrowers.org/ed-releases-proposal-to-deliver-student-debt-relief-to-borrowers-experiencing-hardship/
Letter from negotiators about hardship: https://nylag.org/wp-content/uploads/2024/01/2024.01.30-Letter-from-Negotiators-Fourth-Session.pdf
Letter to Secretary Cardona sent by lawmakers about hardship: https://www.warren.senate.gov/download/20231208-letter-to-secretary-cardona-re-neg-reg-comment-on-student-debt
Letter to Secretary Cardona sent by 67 organizations about hardship: bit.ly/Letter_ED_Neg-Reg-Session-4_01-18-2024
SBPC’s blog underscoring the need for President Biden’s new debt relief effort to include a plan to support borrowers experiencing hardship: https://protectborrowers.org/bidens-student-debt-relief-plan-b-must-not-leave-millions-in-hardship-behind/
SBPC’s statement following ED’s announcement about holding a 4th session to discuss hardship: https://protectborrowers.org/ed-to-reconvene-negotiators-for-4th-session-to-deliver-student-debt-relief/
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About Student Borrower Protection Center
Student Borrower Protection Center (SBPC) is a nonprofit organization focused on eliminating the burden of student debt for millions of Americans. We engage in advocacy, policymaking, and litigation strategy to rein in industry abuses, protect borrowers’ rights, and advance racial and economic justice.
Learn more at protectborrowers.org or follow SBPC on Twitter @theSBPC.