Today marked the beginning of Biden's second attempt at student loan cancellation. This was the first of a series of hearings, part of the negotiated rulemaking process, to review if the Higher Education Act could be a suitable next step to broad student debt forgiveness.
So what exactly is negotiated rulemaking and how will this time be any different?
What is negotiated rulemaking?
Under negotiated rulemaking, "the Department of Education works in collaboration with representatives of the parties who will be affected significantly by the regulations."
Why is this a big deal? Well if you remember, Biden's original Student Loan Forgiveness plan was shot down by the Supreme Court in June of this year.
By involving stakeholders a second time around, the administration is hoping to put their best foot forward in helping those with student loan debt get the forgiveness they need. They want to hear arguments from all sides and poke holes in the plan before moving forward.
Below is a list of some of the stakeholders involved in this process:
- State officials
- Representatives from colleges as well as students
- Student Loan Servicers
What's next for Biden's second attempt at cancellation
Those participating in negotiated rulemaking will meet again on November 6 and December 11 to negotiate terms. According to this article, "if the group agrees on a proposal, the Department of Education can move forward with it. If they don't, the Department of Education can propose its own plan."
Stay tuned for more but prepare for this to be another long process. If you need help getting in touch with your student loan servicer you can visit our guides on how to contact Aidvantage, Nelnet, and MOHELA.
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