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The Education Department will send emails to borrowers about the potential for debt relief today, signaling that the agency is close to finalizing a plan to discharge millions of Americans’ student loan debts. The emails will not say who will receive relief or how much but will inform borrowers that if they want to opt out they must do so by Aug. 30.
“By providing more information to borrowers on how they can take advantage of our upcoming debt relief programs, borrowers will be prepared to benefit swiftly once the rules are final,” President Biden wrote in a statement. “Despite attempts led by Republican elected officials to block our efforts, we won’t stop fighting to provide relief to student loan borrowers.”
The Biden administration proposed the loan forgiveness plan earlier this year, after the Supreme Court struck down its efforts forgive up to $20,000 in federal loans for all eligible students. The new debt-relief plan would provide full or partial relief for specific groups of student borrowers, including those who owe more than they initially borrowed as a result of accrued interest and those who have been repaying loans for more than 20 years.
Borrowers who attended programs or institutions that were kicked out of the federal financial aid program, or that closed and failed to deliver sufficient financial value, could see their full balances wiped out.
The plan will likely go into effect after officials finalize regulations this fall and is expected to benefit nearly 28 million Americans.
Republican lawmakers criticized Wednesday’s announcement while debt-relief advocates applauded the move.
“These plans make clear that the administration is working diligently to ensure debt relief can be implemented as swiftly as possible,” said Aissa Canchola Bañez, policy director for the Student Borrower Protection Center.
