Department of Education releases new regulations revamping student loan relief programs


The Department of Education on Monday released a final set of new regulations for its student loan programs, which roll back a number of changes made during the Trump administration and will reduce the amount owed by many borrowers, The New York Times reports.
"The regulations announced today will streamline a needlessly complicated system and give borrowers a simpler and more often automatic path to the discharges they deserve," said Education Department Under Secretary James Kvaal.
According to the Education Department, the new regulations will "expand eligibility, remove barriers to relief, and encourage automatic discharges for borrowers who are eligible for loan relief." The news comes as President Biden's student loan relief plan, which would cancel up to $20,000 in student debt for millions of Americans, faces legal trouble. Though the application is open, many are unsure whether their debt will actually be forgiven, the Times continues.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The regulations announced Monday include the elimination of most interest capitalization, which is when "borrowers have outstanding unpaid interest added to their principal balance"; better loan forgiveness for public servants; loan forgiveness for those misled by their institutions; and loan forgiveness for those who become permanently disabled, per the Education Department.
"Today is a monumental step forward in the Biden-Harris team's efforts to fix a broken student loan system and build one that's simpler, fairer, and more accountable to borrowers," said U.S. Secretary of Education Miguel Cardona.
The regulations will take effect in July 2023.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Devika Rao has worked as a staff writer at The Week since 2022, covering science, the environment, climate and business. She previously worked as a policy associate for a nonprofit organization advocating for environmental action from a business perspective.
-
Thai court suspends prime minister over leaked call
Speed Read Prime Minister Paetongtarn Shinawatra has been suspended, pending an ethics investigation
-
Senate passes GOP megabill after Alaska side deal
The pivotal yes vote came from Sen. Lisa Murkowski, whose support was secured following negotiated side deals for her home state Alaska
-
Trump sues LA over immigration policies
Speed Read He is suing over the city's sanctuary law, claiming it prevents local law enforcement from cooperating with federal immigration authorities
-
Obama, Bush and Bono eulogize USAID on final day
Speed Read The US Agency for International Development, a humanitarian organization, has been gutted by the Trump administration
-
The last words and final moments of 40 presidents
The Explainer Some are eloquent quotes worthy of the holders of the highest office in the nation, and others... aren't
-
Senate advances GOP bill that costs more, cuts more
Speed Read The bill would make giant cuts to Medicaid and food stamps, leaving 11.8 million fewer people with health coverage
-
Canadian man dies in ICE custody
Speed Read A Canadian citizen with permanent US residency died at a federal detention center in Miami
-
GOP races to revise megabill after Senate rulings
Speed Read A Senate parliamentarian ruled that several changes to Medicaid included in Trump's "One Big Beautiful Bill" were not permissible