After the Administration’s student debt relief plan was struck down by the Supreme Court in June, the Department of Education issued a notice of its intent to establish a negotiated rulemaking committee to seek debt relief. Three negotiated rulemaking sessions were scheduled. The first was held October 10-11, the second is to be held this Monday, November 6, and Tuesday, November 7, and the third is scheduled for December 11-12.
On Monday, the Department of Education released a draft regulatory text. The Department aims to use the Secretary of Education’s authority under the Higher Education Act (HEA) to provide debt relief for several categories of borrowers: borrowers whose balances are greater than what they originally borrowed, borrowers whose loans first entered repayment 25 years ago or more, borrowers who attended programs that did not provide sufficient financial value, and borrowers who are eligible for relief under programs like income-driven repayment but have not applied. In addition, the next negotiated rulemaking session will further consider borrowers experiencing hardship not otherwise addressed by the existing student loan system.
Details are here.