The Biden administration on Wednesday announced several new proposed changes to the federal student loan system, including measures that help discharge loans for physically and mentally disabled borrowers, limit interest capitalization rates, and help borrowers working as public service employees to earn forgiveness on their loans.
In a statement unveiling the proposed expansion of student loan discharge programs, the Department of Education said it expected to finalize a full plan by Nov. 1, with the aim to have the changes take effect no later than July 1.
Secretary of Education Miguel Cardona said in the statement that proposed changes “will protect borrowers and save them time, money, and frustration, and will hold their colleges responsible for wrongdoing.”
“We are committed to fixing a broken system. If a borrower qualifies for student loan relief, it shouldn’t take mountains of paperwork or a law degree to obtain it,” Cardona said in a statement. “Student loan benefits also should not be so hard to get that borrowers never actually benefit from them.”
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