Biden administration issues new rules for student debt relief

Zoom in: The new rules would apply to borrowers dealing with hardships like high child care costs, unexpected medical bills or the impacts of a natural disaster.

• "For far too long, our broken student loan system has made it too hard for borrowers experiencing heartbreaking and financially devastating hardships to access relief, and it's not right," Secretary of Education Miguel Cardona said in a statement.
• Some borrowers would receive relief automatically "based on a predictive assessment using existing borrower data" that includes household income and debt balances. Others could apply for relief under the proposal.

The big picture: President Biden has steadily issued student debt relief for groups of borrowers, but his most ambitious efforts to deliver student loan forgiveness have been stymied by Republican legal challenges.

• The Supreme Court scuttled the Biden administration's signature student loan forgiveness plan last year.
• The administration's Saving on Valuable Education (SAVE) plan has been blocked.
• Another student debt relief plan was also halted in court earlier this month.

What to watch: The Department of Education said it expects to finalize the new guidelines in 2025.