Biden student debt plan creates financial disaster loan cancellation [Video]

The Biden administration introduced a new proposal Friday to deliver student loan forgiveness to Americans who experience “financially devastating hardships.”

Qualification rules are vague, but examples of a hardship that could make a borrower eligible for the aid include the potential economic ruin caused by a natural disaster, or a massive, unexpected medical bill.

Some borrowers could see the loan relief automatically, while others would likely have to apply for it, an Education Department official told reporters on a call Thursday.

“For far too long, our broken student loan system has made it too hard for borrowers experiencing heartbreaking and financially devastating hardships to access relief, and it’s not right,” Education Secretary Miguel Cardona said in a statement Friday.

The announcement was the latest effort by the Education Department under President Joe Biden to cancel people’s education debt.

Biden has forgiven more student debt than any other president in history. But his most ambitious plans have been …