Want A Say In Biden’s New Student Loan Forgiveness Plan? Here’s How

The Biden administration is forging ahead to create a new student loan forgiveness plan in the wake of last month’s Supreme Court ruling. The Court struck down Biden’s first student debt relief plan, characterizing it as executive overreach.

The Education Department took its first step last week in what will be a long process to establish a new loan forgiveness program. But borrowers can have a say in what the plan will look like.

Biden’s New Student Loan Forgiveness Plan Is In Early Stages

President Biden had originally relied on the HEROES Act to enact mass student loan forgiveness. That 2003 statute provides authority to the Education Department to “waive” or “modify” federal student loan programs in response to major national emergencies, like a pandemic. Biden’s plan would have provided up to $20,000 in student debt relief to millions of Americans.

But the Supreme Court ruled last month that the HEROES Act did not authorize such broad debt relief. In the 6-3 decision, the conservative majority read the text of the statute narrowly, and concluded that Congress could not have contemplated such a massive loan forgiveness program when it passed the HEROES Act.

With the HEROES Act effectively blocked as a basis for broad student debt relief, the Biden administration is taking a second stab at loan forgiveness via the Higher Education Act. This is an entirely separate federal statute that gives the Education Department authority to “compromise” or “waive” a borrower’s student loan obligations. Advocates for borrowers have long pointed to this statutory provision as a possible alternative basis for widespread student debt relief.

But the process for creating a new student loan forgiveness program under the Higher Education Act is different from the HEROES Act. While the HEROES Act allows for the relatively fast enactment of emergency-based changes to existing rules, new regulations under the Higher Education Act have to go through a long, bureaucratic process involving public input at multiple stages before they can go into effect.

Borrowers Can Submit Comments For Biden’s New Student Loan Forgiveness Program

Last week, the Education Department took the first step to establish a new student loan forgiveness plan by announcing the administration’s intent to begin the negotiated rulemaking process. This involves establishing a committee of key stakeholders, which will then evaluate the potential parameters of a new loan forgiveness plan, consider public input, and make recommendations about the scope of the program.

Borrowers can start submitting public comments to the department now. “We must receive written comments on the topics suggested by the Department and additional topics that you believe we should consider for action by the negotiating committee(s) on or before July 20, 2023,” says the department’s official negotiated rulemaking notice issued last week. “Comments must be submitted through the Federal eRulemaking Portal at regulations.gov.” The notice indicates that submissions should include the docket ID, which is ED-2023-OPE-0123.

Student loan borrower advocacy groups encouraged borrowers to submit comments in favor of a broad new student loan forgiveness plan. “As President Biden and Secretary Cardona kick off the new program under the [Higher Education Act] provisions, President Biden’s student debt cancellation plan will be subject to public comment and revision,” said the Student Debt Crisis Center in a blast email to members. “It is more important than ever that we continue lifting the voices of borrowers and sharing the harsh realities the student debt crisis has on millions of Americans. Submit your comment HERE.”

What’s Next For New Student Loan Forgiveness Plan

This public comment period is just the first step in what will likely be a lengthy negotiated rulemaking process. “After reviewing the public comments presented at the public hearing and in the written submissions, we will publish a document (or documents) in the Federal Register announcing the specific topics for which we intend to establish a negotiated rulemaking committee and a request for nominations for individual negotiators for the committee who represent the communities of interest that would be significantly affected by the proposed regulations,” says the department in the notice.

The administration has indicated that it hopes to make the new plan as broad and far reaching as the original debt relief program that was struck down. But it may be months before Biden’s new student loan forgiveness plan comes into focus.

In the meantime, the administration is focusing on other student loan debt relief initiatives. This includes new, temporary flexibilities as student loan payments resume later this summer; a new, more affordable student loan repayment plan; and the IDR Account Adjustment, which could start resulting in new student loan forgiveness by the fall.

Further Student Loan Forgiveness Reading

9 Key Facts About Biden’s New Student Loan Payment Plan, And How To Apply

Here’s When Student Loan Payments Resume, And What Borrowers Should Do Now

4 Big Student Loan Updates When Payments Resume (And They Resume Soon)

6 Key Student Loan Forgiveness And Repayment Dates To Write Down Now