Education Department officials have drawn up plans to cancel student debt for millions of borrowers, awaiting a final decision from President Biden, as informs c Politics Thursday.
Biden’s decision considers $10,000 in debt relief per borrower he said he would do so before the student loan moratorium ends on August 31. The documents did not detail the Biden administration’s final debt relief plan; however, Politics department officials reportedly briefed Education Minister Miguel Cardona on plans for a broad cancellation last week.
Documents received in Politics Education Department officials indicate that the department can automatically collect debt from borrowers for whom the agency already has income information. Other borrowers will need to apply through StudentAid.gov.
The documents also say that all types of federal student loans will be eligible for forgiveness, including Parent PLUS and Grad loans. In addition, it was suggested that borrowers who received low-income assistance like Pell Grants could have additional debt forgiven.
The department is also considering debt forgiveness for defaulting borrowers. However, he is looking into the legal issues surrounding this possibility.