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1 1 (April 22, 2024)

handle is hein.crs/goveoza0001 and id is 1 raw text is: The Biden Administration's First Student Loan Debt Relief Proposed Rule April 22, 2024 On April 17, 2024, Secretary of Education Miguel Cardona (the Secretary) published in the Federal Register a Notice of Proposed Rulemaking (NPRM), describing when the Secretary may waive all or part of a borrower's outstanding federal student loan debt pursuant to Section 432(a)(6) of the Higher Education Act (HEA). That provision authorizes the Secretary to enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand, however acquired under the Federal Family Education Loan program (FFELP). The Department of Education (ED) has argued this provision also applies to the Direct Loan program-the primary federal student loan program-and the Health Education Assistance Loan (HEAL) program. The NPRM results from negotiated rulemaking that occurred between October 2023 and February 2024. It is the first of two proposed rules deriving from the student loan debt relief negotiated rulemaking that ED intends to issue to address the burden of Federal student loan debt. The NPRM follows an earlier effort by the Secretary to provide student loan debt relief. On August 24, 2022, the Secretary announced he would invoke the HEROES Act of 2003 to cancel up to $20,000 in qualifying borrowers' federal student loans to address the financial harms of the COVID-19 pandemic. In June 2023, the Supreme Court ruled that policy exceeded the Secretary's statutory authority, thus precluding ED from cancelling any loan balances under that policy. The NPRM is distinct from the HEROES Act policy. The NPRM relies on a different statutory authority, would use different criteria to qualify borrowers for relief, and would provide different waiver amounts. This Insight summarizes the NPRM and describes next steps in the rulemaking process. Proposed Loan Waivers Approximately $1.6 trillion in federal student loans, borrowed by more than 43 million individuals, is outstanding. In summary form, under the NPRM, the Secretary generally proposes to waive the following for ED-held loans under the FFELP, Direct Loan program, Perkins Loan program, and HEAL program: 1. The amount by which each of a borrower's loans has an outstanding balance that generally exceeds the amount the borrower owed when the loan entered repayment Congressional Research Service https://crsreports.congress.gov IN12350 CRS INSIGHT Prepared for Members and Committees of Congress

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