President Joe Biden's next plan for getting student-loan forgiveness to borrowers is now more defined. Via Business Insider:
On Monday, the Education Department released updated regulatory text for its proposal to cancel student debt using the Higher Education Act of 1965. After the Supreme Court struck down Biden's first attempt at broad debt relief at the end of June, the Education Department immediately started its second attempt at relief using the HEA — a law that requires a series of negotiation sessions with stakeholders to help craft the final rule.
The department has so far held two negotiation sessions in October and November, and the final two-day session is set to occur on December 11 and 12. During those days, negotiators are expected to discuss the department's proposed plan for relief.
He plans to prioritize these five groups of borrowers:
* Borrowers on income-driven repayment plans who have balances that are greater than what they originally owed. The department proposes waiving up to $20,000 of that balance.
* Other borrowers who have balances greater than what they owed upon entering repayment. The department proposes waiving up to $10,000 for those borrowers.
* Borrowers whose loans entered repayment decades ago. The department proposes one-time relief 20 years after entering repayment for borrowers with undergraduate loans. All other borrowers who have been in repayment for 25 years would also be eligible for relief.
* Borrowers who are eligible for relief under income-driven repayment plans or targeted programs such as Public Service Loan Forgiveness but haven't applied.
*Borrowers who attended schools that left them with unaffordable debt compared with post-grad earnings.
