The Biden administration on Wednesday unveiled new proposals to improve and expand student loan relief programs by attempting to make it easier for borrowers who were defrauded by for-profit schools, those who are permanently disabled and public servants to benefit from loan forgiveness, building on previous efforts to tackle what it calls a “broken” system.
The White House wants to get rid of limits on when some borrowers can file loan cancellation claims, and allow them to file group claims, if their school closes or if they were taken advantage of by a for-profit school.
If adopted, the new regulations would “protect borrowers and save them time, money, and frustration,” while also holding “colleges responsible for wrongdoing,” the Department of Education said in a statement.
Another new rule aims to ensure more borrowers who are permanently disabled and unable to work receive student loan relief by expanding eligibility criteria to include more types of disability recognized by the Social Security Administration and allowing borrowers to submit a broader range of documents to show proof of their disability.
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