In a surprising move during the administration’s final weeks, the Biden-Harris team has reportedly withdrawn two significant student loan cancellation proposals. These plans, which had faced scrutiny, aimed to alleviate student debt burdens for millions but shifted the financial responsibility to taxpayers.
As reported by Resist Times, the plans would have granted the Department of Education secretary the authority to cancel loans for various groups across the country. Together, these initiatives could have wiped out the debts of millions, offering widespread financial relief.
In a notice posted to the Federal Register, the Department of Education stated, “The U.S. Department of Education is withdrawing a notice of proposed rulemaking that, under the Secretary’s authority to waive repayment of a loan provided by the Higher Education Act of 1965.”
The notice also clarified that the administration would not move forward with proposed measures to cancel loans, which included:
- Amending regulations related to the waiver of specific student loan debts.
- Providing targeted debt relief to reduce the burden of student loan debt.
- Modifying existing debt collection regulations to offer more precise guidelines on when the Secretary could waive all or part of debts owed to the Department.
The plans, as reported by Forbes, could have impacted over 30 million borrowers. They were designed to assist individuals who had accrued years of interest on their loans and those facing severe financial hardship.
Higher education analyst Mark Kantrowitz commented on the withdrawal, stating, “The Biden administration knew that the proposals for broad student loan forgiveness would have been thwarted by the Trump administration.”
Biden’s efforts to cancel student loan debt have faced significant legal and political challenges. Earlier proposals to forgive billions in student loans were struck down by the Supreme Court, forcing the administration to pivot to alternative approaches.
Former President Donald Trump has been vocal in opposing Biden’s sweeping debt cancellation initiatives, framing them as fiscally irresponsible. The latest withdrawal appears to reflect the administration’s acknowledgment of the difficulties in implementing such widespread relief measures.
With these plans shelved, the future of student loan forgiveness remains uncertain, leaving millions of borrowers awaiting clarity on possible solutions to the nation’s mounting student debt crisis.