The Biden administration has proposed sweeping changes to student loan forgiveness programs that would cut red tape that currently stands in the way of some borrowers from canceling their debt. “If a borrower qualifies for student loan relief, it won’t take much paperwork or a law degree to get it,” Education Secretary Miguel Cardona said in a statement Wednesday. “Also, student loan benefits should not be so difficult to obtain that borrowers never actually benefit from them.” The proposed changes, which the Department for Education hopes to finalize later this year, will make it easier for those who qualify for existing programs to get debt relief. A trombonist with the band Too Much Talent performs at a rally for student loan forgiveness at Pennsylvania Avenue and 17th Street near the White House on April 27, 2022, in Washington, DC. (Anna Moneymaker/Getty Images/Getty Images) For example, the Department of Education will begin processing claims in groups instead of individually under its borrower advocacy program, which is designed for students who believe their college lied to them or took advantage of them. TENNESSEE COLLEGE GO FRIDAY TO SAVE STUDENTS GAS MONEY The public service loan forgiveness program, which allows government and nonprofit employees to have their loans forgiven after 120 monthly payments, will also get an overhaul. Workers in eligible jobs currently have to adhere to strict rules, such as full payment within 15 days of the due date. The new rules will eliminate that 15-day requirement. “Whether it’s closing school discharges, borrower defense claims, PSLF, or relief after a total and permanent disability, borrowers have had to navigate narrow rules and an unnecessarily complex system,” said James Kwaal, Under Secretary of Education. Wednesday’s statement. Activists hold signs as they attend a rally for student loan forgiveness at Pennsylvania Avenue and 17th Street near the White House on April 27, 2022, in Washington, DC. (Anna Moneymaker/Getty Images/Getty Images) “The regulations we are proposing today will remove many of these barriers and help create a federal student loan system that works better for borrowers,” Kvaal added. GET THE FOX BUSINESS ON THE GO BY CLICKING HERE Biden announced two rounds of student loan forgiveness last month worth about $12 billion, mostly for students who attended for-profit colleges. The president has so far resisted calls from the progressive wing of his party to cancel up to $50,000 of student loan debt for each borrower, but the Washington Post reported in May that he was considering a smaller, more targeted student debt write-off. The Associated Press contributed to this report.
