Biden Administration Scraps Student Loan Forgiveness Plan Ahead of Inauguration | Global News Avenue

President Joe Biden’s administration has withdrawn its proposal to provide student debt relief to nearly 8 million borrowers.

The proposal, Originally announced in Octoberwill forgive qualified student loans for borrowers who incur significant medical expenses, child care costs, home care expenses or financial hardship as a result of a natural disaster.

The Education Department said it withdrew the proposal because the administration wanted to focus on other priorities in the remaining time before President-elect Donald Trump takes office. These priorities include helping borrowers after their loans mature End of ramp periodwhich gives borrowers time to begin repayments after the pandemic pause.

The department maintains, however, that it has the authority to provide student debt relief to borrowers who are struggling to afford their payments due to hardship. Whether the presidential administration can unilaterally forgive student debt without congressional approval has been at the center of many legal challenges to Biden’s student loan relief plan.

The withdrawal is part of a larger effort by the Biden administration to tie up loose ends before the election. The government may shut down and president-elect donald trump inauguration. The administration also Forgive $4.28 billion in student loansFriday for public service workers.