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.
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.
-
Marisa Silver’s 6 favorite books that capture a lifetime
Feature The author recommends works by John Williams, Ian McEwan, and more
-
Book reviews: ‘We the People: A History of the U.S. Constitution’ and ‘Will There Ever Be Another You’
Feature The many attempts to amend the U.S. Constitution and Patricia Lockwood’s struggle with long Covid
-
Philadelphia’s Calder Gardens
Feature A permanent new museum
-
Court allows Trump’s Texas troops to head to Chicago
Speed Read Trump is ‘using our service members as pawns in his illegal effort to militarize our nation’s cities,’ said Gov. J.B. Pritzker
-
Judge bars Trump’s National Guard moves in Oregon
Speed Read In an emergency hearing, a federal judge blocked President Donald Trump from sending National Guard troops into Portland
-
Museum head ousted after Trump sword gift denial
Speed Read Todd Arrington, who led the Dwight D. Eisenhower Presidential Library and Museum, denied the Trump administration a sword from the collection as a gift for King Charles
-
Trump declares ‘armed conflict’ with drug cartels
speed read This provides a legal justification for recent lethal military strikes on three alleged drug trafficking boats
-
Supreme Court rules for Fed’s Cook in Trump feud
Speed Read Federal Reserve Governor Lisa Cook can remain in her role following Trump’s attempts to oust her
-
Judge rules Trump illegally targeted Gaza protesters
Speed Read The Trump administration’s push to arrest and deport international students for supporting Palestine is deemed illegal
-
Trump: US cities should be military ‘training grounds’
Speed Read In a hastily assembled summit, Trump said he wants the military to fight the ‘enemy within’ the US
-
US government shuts down amid health care standoff
Speed Read Democrats said they won’t vote for a deal that doesn’t renew Affordable Care Act health care subsidies