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Changes could be coming to federal student loan system

Posted at 12:47 PM, Jul 07, 2022
and last updated 2022-07-07 21:00:57-04

(KERO) — The Biden Administration announced new changes to the federal student loan system.

Some of the elements of the new proposal include changes to how interest accrues for a federal student loan. It also includes an overhaul of the public service loan forgiveness system.

The proposal would expand protection for defrauded borrowers. That means students who attended for-profit schools that lied or took advantage of them could be considered for debt cancellation as a group.

These changes could impact as many as 40 million Americans.

The public has 30 days to comment on the Education Department’s proposed regulations And the final rules will go into effect no later than July 1st of next year.