Biden Simplifies Rules For Student Loan Cancellation

Biden Simplifies Rules For Student Loan Cancellation

Here's what you need to know — and what it means for your student loans. Inside Biden's major proposal to make student loan cancellation easier for student loan borrowers are several rule changes related to borrower defense to repayment. This Obama-era rule helps student loan borrowers who were misled by their college or university or had their school closed to get their student loans canceled. Last month, Biden canceled $6 billion of student loans for 200, 000 student loan borrowers through borrower defense to repayment. Here are 7 ways it could become easier to get student loan forgiveness through borrower defense to student loan repayment. Previously, student loan borrowers had to navigate different processes for student loan relief based on the year in which their student loans were disbursed. Now, the Biden administration will create a single, streamlined process for student loan borrowers to get student loan relief through borrower defense to repayment. The U. S. Department of Education will allow student loan borrowers to get a student loan discharge based on five categories of misconduct by a college or university: (a) substantial misrepresentations; (b) substantial omissions of fact; (c) breaches of contract; (d) aggressive and deceptive recruitment; or (e)