Previously, the Supreme Court rejected a request from the president. Biden to circumvent legal challenges that were pending in federal courts. “President Biden does not have the authority to erase student debt without express approval from Congress,” said a spokesperson for Missouri Attorney General Andrew Bailey, who along with Alabama attorneys general , Arkansas, Florida, Georgia, Missouri, North Dakota and Ohio, the president continued. . Biden and Education Secretary Miguel Cardona.

Close. Biden’s new plan, which was announced Fridaywould authorize forgiveness when the Department of Education (DOE) determines that a hardship is likely to adversely affect the borrower’s ability to repay the loan in full.

“For too long, our broken student loan system has made it too difficult to access relief for borrowers facing heartbreaking and devastating financial challenges, and that’s not fair,” said the U.S. Secretary of Education , Miguel Cardona. “The rules proposed today by the Biden-Harris Administration would give hope to millions of struggling Americans whose challenges could make them eligible for student debt relief.”

People with unexpected medical bills, high child care costs for care and those who suffered a financial hit after a natural disaster could be included among those eligible for cancellation, according to the DOE. The new rule could also allow for “any other indicator of hardship identified by the Secretary” to be taken into account. under the proposed new rule.