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1 1 (October 31, 2024)

handle is hein.crs/govered0001 and id is 1 raw text is: Student Loan Debt Relief: The Biden Administration's Second Proposed Rule October 31, 2024 On October 31, 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 statutory 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 U.S. 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 second of two proposed rules derived from the student loan debt relief negotiated rulemaking. ED issued the NPRM to clarify how it would exercise its authority under HEA Section 432(a)(6). ED published the first proposed rule on April 17, 2024; a federal court has since preliminarily enjoined ED from implementing that proposed rule. ED has stated that the second proposed rule would operate separately and distinctly from the first proposed rule. For information about the first proposed rule, see CRS Report R48156, The Biden Administration's Student Loan Debt ReliefRulemaking. Proposed Loan Waivers Borrowers owe approximately $1.6 trillion in federal student loans, borrowed by or on behalf of more than 42 million individuals. Under the second NPRM, the Secretary proposes to waive up to the outstanding balance of a borrower's ED-held loans under the FFELP, Direct Loan program, Perkins Loan program, and HEAL program if he determines that the borrower is experiencing hardship related to the loan such that the hardship is likely to impair the borrower's ability to fully repay the Federal government or costs of enforcing the full amount of the debt are not justified by the expected benefits of continued collection of the debt. To determine whether a borrower is experiencing hardship, the Secretary would consider a list of 17 nonexhaustive factors. These factors fall into several general categories: Congressional Research Service https://crsreports.congress.gov IN12454 CRS INSIGHT Prepared for Members and Committees of Congress

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