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.
-
June 29 editorial cartoons
Cartoons Sunday's political cartoons include the AI genie, Iran saving face, and bad language bombs
-
A tall ship adventure in the Mediterranean
The Week Recommends Sailing aboard this schooner and exploring Portugal, Spain and Monaco is a 'magical' experience
-
How drone warfare works
The Explainer From Ukraine to Iran, it has become clear that unmanned aircraft are rapidly revolutionising modern warfare
-
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
-
Supreme Court lets states ax Planned Parenthood funds
Speed Read The court ruled that Planned Parenthood cannot sue South Carolina over the state's effort to deny it funding
-
Trump plans Iran talks, insists nuke threat gone
Speed Read 'The war is done' and 'we destroyed the nuclear,' said President Trump
-
Trump embraces NATO after budget vow, charm offensive
Speed Read The president reversed course on his longstanding skepticism of the trans-Atlantic military alliance
-
Trump judge pick told DOJ to defy courts, lawyer says
Speed Read Emil Bove, a top Justice Department official nominated by Trump for a lifetime seat, stands accused of encouraging government lawyers to mislead the courts and defy judicial orders
-
Mamdani upsets Cuomo in NYC mayoral primary
Speed Read Democratic socialist Zohran Mamdani beat out Andrew Cuomo in New York City's Democratic mayoral primary
-
Supreme Court clears third-country deportations
Speed Read The court allowed Trump to temporarily resume deporting migrants to countries they aren't from