Ed Dept. could cancel student debt for parents, grad students: report – Business Insider
The Education Department is ready to cancel student debt once Biden signs.
A new report by Politico offered some clarity on how President Joe Biden’s Education Department is preparing to implement broad student-loan forgiveness. The report said that all types of federal loans should be eligible for loan forgiveness.
Parent PLUS loans have the highest interest rate of all federal loans, now at 7.54%. Many parents end up with a debt burden long after their kids graduate.
The memo suggests good news for student loan borrowers, but the White House still has to sign off on the plan.
The Education Department documents do not reflect any final decisions on a debt relief program, but they do show some ideas the administration is taking seriously.
Senior department officials briefed Secretary Miguel Cardona on plans to implement broad-based student loan cancellation earlier this week. They said the program would allow immediate eligibility determination for millions of borrowers and cancellations within 45 days of announcement.
Administration officials have repeatedly said they are considering various options for canceling student debt, but the full scope and level of detail of the Education Department’s preparations for a loan forgiveness program have not previously been reported.
The Education Department is creating an online application form that allows borrowers to self-attest that their income qualifies them for loan forgiveness. The department is also developing a risk-based verification process to check the accuracy of applications.
For more information on the status of this debt forgiveness plan, check out the news outlets listed below.
- Ed Dept. could cancel student debt for parents, grad students: report Business Insider
- Student loan pause set to end NBC4 Columbus
- The Education Department has a plan for canceling student debt — if Biden gives the word POLITICO
- If Biden won’t cancel student loan debt, Congress should cancel the interest The Hill
- As Biden nears deadline, Democrats push for payment pause extension KOMO News
- View Full Coverage on Google News