Student Debt Relief Plan: Relief for Borrowers Misled By Colleges

The Biden administration has decided to provide another Student Debt Relief Plan after the former awaits the decision of the Supreme Court. The Borrower Defense Loan Discharge was launched by the U.S. Department of Education’s Federal Student Aid agency.

The administration of U.S. President Joe Biden has decided to provide another Student Debt Relief Plan after the former plan still awaits the decision of the Supreme Court. The new relief plan is the Borrower Defense Loan Discharge. This was launched by the Federal Student Aid agency of the U.S. Department of Education. This relief plan intends to help borrowers have their student loans forgiven if they have been misled by the colleges and universities they have attended.

According to Cariaga, the new Student Debt Relief Plan was revealed on a new webpage. The webpage offers detailed steps on how to access a borrower defense to repayment. This means that a borrower is entitled to legal grounds that may forgive their federal student loans if their schools have violated specific laws. If a borrower’s application is approved, it will forgive any unpaid federal student loans made to attend school. The Education Department may even refund the payments that are already made.

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How to Apply for the New Student Debt Relief Plan

According to Bendig, to guarantee that the applications for the new Student Debt Relief Plan will be accepted, the Education Department had suggestions. Applicants are advised to be as detailed as possible to help evaluate their claims and address all needed elements of their claims.

To date, the Education Department has already forgiven around $14.5 billion in student loan debts. These forgiven loans are for 1.1 million borrowers under the new Student Debt Relief Plan. This has reported a significant change compared to the Trump administration. It is because Trump’s Education Secretary, Betsy DeVos, considered the new Student Debt Relief Plan as a “bad policy.”

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