HomeFinance NewsPersonal financeUnlock Financial Freedom: Student Loan Forgiveness Relief for Struggling Borrowers

Unlock Financial Freedom: Student Loan Forgiveness Relief for Struggling Borrowers


Borrowers in ‘financial hardship’ could get student loan forgiveness. Who might qualify?


The Biden administration has announced plans to look into forgiving student debt for borrowers experiencing “financial hardship.”

The exact eligibility criteria are not yet known, but clues can be found in other programs that aim to help the same group of borrowers.

The Department of Education might follow the standards used in bankruptcy discharge of student loans, where borrowers have to prove undue hardship.

Categories like Pell Grant recipients, those eligible for health insurance subsidies, or borrowers with high debt-to-income ratios could be considered.

The department prefers using data already available to identify eligible borrowers.

Discussions are also happening to potentially ease collection practices for student loan borrowers.

  • Overall sentiment: positive
  • Positive

    “The Biden administration recently announced it would look to forgive the student debt of borrowers experiencing “financial hardship.””

    “The Education Department has also recently made it easier for struggling borrowers to get their student loans erased in bankruptcy court.”


    “Since the Supreme Court struck down President Joe Biden’s original plan to cancel up to $400 billion in student debt, his administration has tried to rework its relief package to make it legally viable.”

    “To do so, it has sought to narrow the aid by focusing on certain groups, including those with balances greater than what they originally borrowed and students from schools of questionable quality.”

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