More flexibility proposed for student debt forgiveness

FILE - Graduates of the University of Texas Rio Grande Valley attend their commencement ceremony at the schools parking lot on Friday, May 7, 2021, in Edinburg, Texas. New rules proposed by the Biden administration on Wednesday, July 6, would make it easier for borrowers to get their federal student debt forgiven through several existing programs. (Delcia Lopez/The Monitor via AP, File)

New rules proposed by the Biden administration on Wednesday would make it easier for borrowers to get their federal student debt forgiven through several existing programs.

The action is intended to overhaul relief programs that have been criticized for their burdensome paperwork requirements and long processing times. It builds on the administration's efforts to expand targeted debt cancellation for certain borrowers while President Joe Biden considers broader student debt forgiveness.

"We are committed to fixing a broken system," Education Secretary Miguel Cardona said in a statement. "If a borrower qualifies for student loan relief, it shouldn't take mountains of paperwork or a law degree to obtain it."

The proposal would smooth out a debt forgiveness process for students whose colleges deceive them, along with other programs for borrowers who are disabled and those with careers