Biden Admin Pushes New Regulation To Address Student Loan Debt

Biden Admin Pushes New Regulation To Address Student Loan Debt

( – The Biden administration is attempting to subvert challenges to his plans for student loan cancellations by putting forth a new regulation.

The new plan will still forgive or lower student loans for over 25 million US citizens if successful. The Education Department has already filed the necessary documents to create the regulation, but it must still go through the usual processes before it’s finalized. That includes a 30-day period allowing for public comments and a second review.

The Associated Press reported that these efforts, if successful, could help improve his campaign’s polling performance among young voters. Reports indicate that younger voters have been frustrated with Biden, particularly his handling of Israel and Gaza in recent months.

However, many Conservatives have expressed opposition to Biden’s efforts to forgive student loan debt. Critics have argued that it’s unfair to American workers who either paid their way through college or found work without getting a degree. Just this month, Republican states took legal action against Biden’s student loan repayment plan.

If passed, the new regulation could cancel up to $20,000 worth of accumulated interest for borrowers who owe more than their original balances despite paying them down. Borrowers who make less than $120,000 per year and have an active enrollment in a repayment plan driven by income could potentially have all their interest wiped out. A separate category would also forgive debt for borrowers who have been paying the balance for undergraduate degree loans for at least two decades. The time limit increases to 25 years for graduate degrees.

Additionally, anyone who used student loans at schools that are considered to have a lower value could have their loans canceled automatically. The threshold is typically set to the average income of a high school graduate with no additional education.

Similar regulations often take months to be finalized. That could make it a lucrative talking point during the 2024 presidential campaigns if he can convince voters that his plan will die if Trump is elected.

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