Biden Administration Unveils Proposals to Expand and Improve Student Debt Relief Programs

Biden Administration Unveils Proposals to Expand and Improve Student Debt Relief Programs

July 13, 2022
By: Freedom to Prosper Team

Last week, the Biden Administration released a package of policy proposals to continue its commitment to relieving borrowers and making student loan programs work.

The proposed regulations and programs would limit student loan interest capitalization and improve borrower defense, Public Service Loan Forgiveness (PSLF), and other debt-relief programs. Clearly, the current student loan system is a failed social experiment that has trapped over 47 million Americans and their families in a debt cycle that many can’t dig out.

“We are committed to fixing a broken system. If a borrower qualifies for student loan relief, it shouldn’t take mountains of paperwork or a law degree to obtain it,” said U.S. Secretary of Education Miguel Cardona. “Student loan benefits also should not be so hard to get that borrowers never actually benefit from them. The Biden-Harris Administration is determined to build a more accessible, affordable, and accountable student loan system. These proposed regulations will protect borrowers and save them time, money, and frustration, and will hold their colleges responsible for wrongdoing.”

President Biden has already approved nearly $26 billion in targeted student loan relief for more than 1.3 million borrowers through executive action, including:

Full student debt cancellation is the ultimate goal because it will boost our economy, increase our GDP, and give millions of families the freedom to prosper. But the Administration is making incremental, meaningful progress toward greater student debt relief. We at Freedom to Prosper commend the Biden Administration for its forthright action, and look forward to the next steps in the solution to this major issue that causes so much hardship to so many.

[Photo by Charles DeLoye]

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