The Department of Education issues proposed regulations to expand and improve specific aid programs The proposed regulations limit the capitalization of interests of student loans and improve the defense of the borrower, the forgiveness of the public service loan and others Debt relief programs July 6, 2022 Contact: Press Office, (202) 401-1576, press@ed.gov
  • Today, the United States Department of Education (Department) published proposed regulations that would expand and improve the main high-loans of student loans authorized by the Higher Education Law. The regulations are proposed Public Service (PSLF). The regulations also propose to stop many cases of capitalization of interests, which occur when unpaid interest is added to the main balance of a borrower, increasing the total amount they must. Finally, the regulations propose to give the borrowers their day in court if they have disputes with their universities. Today's proposals are based on the work that the Biden-Harris administration has already done to improve the student loan program, make the university more affordable and deliver tens of billions of dollars in relief to more than one million Loans of student loans throughout the country.

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    “We are committed to fixing a broken system. If a borrower qualifies for the relief of student loans, should not take paper mountains or a law title to obtain it, "said the Secretary of Education of the United States, Miguel Cardona." The benefits of student loans should not be so Difficult to get borrowers never benefit from them. The Biden-Harris administration is determined to build a more accessible, affordable and responsible student loan system. These proposed regulations will protect the borrowers and save them time, money and frustration, and They will hold their universities for irregularities. The programs work, including the specific delivery of eligible borrowers and ensure that they have an affordable and effective path outside the debt. The efforts of the administration to date have resulted in the approval of almost $ 26 one billion for more than 1.3 million federal loan borrowers udiantiles, more than any other administration in history. When ending, these proposed regulations would establish lasting improvements to federal student loan programs that address the concerns that the department has heard of borrowers and experts throughout the regulatory process.

    "We have heard from the borrowers who have faced obstacles when trying to follow the relief of the loan they have won or have the right," said James Kvaal, under the Secretary of Education. “Whether for closed school downloads, borrower's defense claims, PSLF or relief after total and permanent disability, borrowers have had to navigate narrow rules and an unnecessarily complicated system. What is worse, the borrowers whose schools lied to them cannot seek litigation because their universities imposed restrictive and unfair arbitration requirements and prohibitions of class action. The borrowers should not have to jump through the hoops to obtain the relief they deserve. The regulations that we have proposed today would eliminate many of those barriers and help create a federal student loan system that works better for borrowers. ”

    The proposed regulations will be published in the next few days and the public is invited to comment on the proposed regulations for 30 days. The department aims to finish these rules before November 1 of this year, which means that they will enter into force no later than July 1, 2023. The rules propose necessary improvements and criticism of the student loan system that include: < /p>

    defense of the borrower

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