President Joe Biden’s administration has unveiled new measures targeting financial hardships faced by millions of borrowers, offering potential loan forgiveness to up to 8 million Americans, Newsweek reported.

The proposed rule addresses cases where borrowers are at high risk of defaulting on their federal student loans. The new provision defines financial hardship as the borrower’s inability to fully repay the debt or the high costs of enforcing repayment. Borrowers who qualify would see their remaining loans forgiven. 

To implement the rule, the Department of Education DOE will use a “predictive assessment” to evaluate each borrower’s financial status. This data will inform Education Secretary Miguel Cardona’s decisions to dispense one-time relief. Officials say the process is designed to be expedited, with the relief issued “as soon as practicable.” 

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