This October, the Biden-Harris administration will likely introduce Biden’s new student loan forgiveness 2024 initiative. Based on a regulation publication schedule from the Biden administration’s Unified Agenda for Spring 2024, the final rule is anticipated to be released sometime in October. However, the exact date has not been specified. Typically, new Education Department regulations take effect on July 1 of the following year, but the administration may use early implementation authority to deliver relief sooner (forbes.com). Millions of student loan borrowers are hoping for a financial lifeline, so here’s what you need to know about who qualifies and the potential challenges ahead.
Who Would Qualify?
Biden’s new student loan forgiveness plan targets four groups of borrowers:
- Runaway Interest Accumulation: Borrowers who have accrued significant interest since entering repayment could receive $20,000 or more in loan forgiveness.
- Eligible Non-Enrollees: Those who qualify for other forgiveness programs but haven’t enrolled could benefit automatically.
- Long-term Borrowers: Undergraduate borrowers who entered repayment 20+ years ago and graduate borrowers who started repayment 25+ years ago are eligible.
- Low-Financial-Value Programs: Borrowers who attended programs with poor student outcomes or were ineligible for federal aid.
Automatic Forgiveness 
According to the Department of Education, if the plan is implemented, one of its key features is automatic forgiveness wherever possible. This means many borrowers won’t need to apply to receive relief. The Education Department aims to use existing data to identify eligible borrowers, speeding up the process significantly.
Hardship-Based Forgiveness
The administration also plans to introduce a fifth category for those experiencing financial hardship (forbes.com). This pathway aims to provide relief for borrowers unable to repay their loans due to financial struggles. Some relief could be automatic, but many borrowers might need to apply.
Legal Challenges Facing the New Plan
Despite its potential benefits, Biden’s new student loan forgiveness plan will likely face legal challenges. The Supreme Court blocked Biden’s previous attempt at mass student debt relief. The administration hopes this plan, based on the Higher Education Act, will withstand legal scrutiny. However, opponents may argue that Congress never authorized mass forgiveness.
Biden’s new student loan forgiveness plan could significantly relieve millions of borrowers. Many may see their student debt burdens reduced or eliminated with automatic forgiveness and specific eligibility criteria. However, the plan’s success will depend on overcoming potential legal hurdles and political challenges. Stay informed and prepared as the October rollout approaches.
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