Hardship May Soon Be Basis For Student Loan Forgiveness: Key Details

The Biden administration is working on a new student loan forgiveness plan. And borrowers who face significant hardships could potentially qualify for relief.

The new program, designed to replace Biden’s first mass student debt relief initiative that was rejected by the Supreme Court, is currently being developed by the Education Department. Earlier this week, the department released draft regulations identifying four categories of borrowers who could qualify for student loan forgiveness under the new plan. This may include borrowers who owe more now than what they originally borrowed, those who attended predatory schools, borrowers who took out student loans more than 25 years ago, and those who qualify for existing loan forgiveness programs and haven’t applied.