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Student loan handouts get easier to obtain under Biden admin rule
Where does money for student loan handouts come from? ‘Americans’ paychecks,’ Preston Cooper says
Foundation for Research on Equal Opportunity Senior Fellow Preston Cooper argues Biden’s student loan handout will force the Fed to raise rates.
The Department of Education released final regulations on Monday that will make it easier for people to get student loan debt handouts if a college misrepresents their program or otherwise "deceives" a student borrower, or if a borrower’s school closes down.
The final rule provides a range of other relief for borrowers, including by limiting the extent to which interest on student debt can be added to borrowers’ principal, and by fulling discharging loans for people with a total and permanent disability. The rule builds on the Biden administration’s controversial effort to relieve millions of borrowers from portions of the estimated $1.5 trillion in total student debt.
"Today is a monumental step forward in the Biden-Harris team’s efforts to fix a broken student loan system and build one that’s simpler, fairer and more accountable to borrowers," said Education Secretary Miguel Cardona. "These transformational changes will protect students who’ve been cheated by their colleges from the bureaucratic nightmares of the past and ensure that all our targeted debt relief programs live up to the promises made by Congress in the Higher Education Act."