White House expands plans to cancel student debt


The White House on Thursday unveiled a significant expansion of its plans to cancel student debt as President Joe Biden looks to run on the issue during this year’s election.

The draft proposal released by the Biden administration would empower the Education Department to discharge the student loans owed by borrowers who are experiencing financial hardship and unlikely to be able to repay their debts.

The department proposed a one-time debt relief program that would automatically cancel debt in circumstances where its data suggests that borrowers are at least 80 percent likely to default on their debt within the next two years. The proposal also contemplates applications from individual borrowers experiencing a hardship.

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