Biden administration is moving toward a narrower student loan relief targeting groups of borrowers

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Biden administration is moving toward a narrower student loan relief targeting groups of borrowers
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WASHINGTON (AP) The Biden administration is moving toward a narrower student loan relief plan that would target specific groups of borrowers.

FILE - President Joe Biden speaks on student loan debt forgiveness, in the Roosevelt Room of the White House, Oct. 4, 2023, in Washington. Biden’s second attempt at student loan cancellation is moving forward as a group of negotiators meets Oct. 10 to debate what a new proposal might look like

A fifth group is also being discussed — “those who are experiencing financial hardship that the current student loan system does not currently adequately address.” It would help counter interest that snowballs beyond borrowers’ original balances. It would offer relief to borrowers who attended for-profit college programs with poor outcomes. It would also help older borrowers who took out loans decades ago and struggle to make payments.

Loans used to attend low-value college programs would also be wiped away. Borrowers would fall into that category if they attended a program that fails new standards outlined in a separate federal rule known as gainful employment.

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