On Thursday, the Biden administration announced a new plan to enact large-scale student loan forgiveness, this time by targeting borrowers experiencing financial “hardship.”
Under the proposal, borrowers would be eligible for forgiveness if they meet certain criteria demonstrating financial hardship, such as their “total student loan balance and required payments relative to household income” and “high-cost burdens for essential expenses like healthcare or childcare,” according to a Thursday press release. The goal of these standards is to identify students who are likely to default on their payments in the next two years.
