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You are here: Home / Public Policy / Student Debt / Biden-Harris Administration Releases First Set of Draft Rules to Provide Debt Relief to Millions of Borrowers

Biden-Harris Administration Releases First Set of Draft Rules to Provide Debt Relief to Millions of Borrowers

May 15, 2024

On April 16, the U.S. Department of Education (ED) released a draft proposal to address the student debt crisis. The plans follow a series of sessions as part of a negotiated rulemaking process and focus on the ED’s authority under the Higher Education Act. A previous plan that used COVID-related emergency powers was overturned by the U.S. Supreme Court last year. The public comment period is open through May 17.

The draft announced nine proposals designed to provide new pathways to address student debt, including:

  • Partial relief for borrowers who have been in repayment over 20 years. This would assist the 3.5 million Americans ages 66+ with student debt that currently threatens their economic security;
  • Canceling “runaway interest,” referring to the fact that many borrowers now owe a higher balance than they started with, even after years of repayment; and
  • Assisting borrowers who took out debt to attend “programs or institutions that failed to provide sufficient financial value.”

A separate draft rule focused on relief for borrowers experiencing hardship is slated for the coming months. That rule is expected to include proposals targeting borrowers who “show hardship due to other indicators” like high medical and caregiving expenses. Stay tuned for opportunities to join the effort to improve college affordability and relieve the disproportionate student debt burden on women. To make sure you don’t miss out on calls to action, sign up to be a Two-Minute Activist with AAUW!

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Filed Under: Student Debt

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