New regulations expanding eligibility for borrower defense to repayment and other debt relief options were announced yesterday by the Department of Education. The new rules will go into effect July 1, 2023.
 
The new borrower defense regulations make the process for debt relief easier for borrowers who were misled or manipulated by a college or university.
 
The Wall Street Journal also reported that the administration also released final regulatory language that will prevent unpaid interest on federal student loans from being added to a borrower’s principal balance where not required by law, a move that could prevent some borrowers’ loan balances from spiraling out of control. Borrowers who attend schools that close while they are enrolled and disabled borrowers will also get streamlined relief under rules released Monday, ahead of a Nov. 1 regulatory deadline.
 
Media coverage of the developments is below:
 
Education Department Releases Final Regulations to Expand and Improve Targeted Debt Relief Programs
U.S. Department of Education (October 31, 2022)
 
Borrower-Defense Rules Finalized
Inside Higher Ed (November 1, 2022)
 
New Biden Rule Speeds Up Student-Loan Forgiveness for Defrauded Borrowers
The Wall Street Journal (October 31, 2022)
 
Education Department Expands Student Loan Relief Programs
The New York Times (October 31, 2022)
 
Education Department Releases New Rules to 'Improve' Student Debt Relief Programs
UPI (October 31, 2022)
 
Biden's Education Department Just Released Its 'Monumental' Plans to Make Student-Debt Payments Cheaper for Borrowers and Streamline Targeted Loan Forgiveness Programs
Business Insider (October 31, 2022)