The Biden administration is withdrawing two unfinished student loan regulations aimed at forgiving debts for 38 million people, cognizant of impending Trump administration scrutiny.
The withdrawal serves as a strategic move to prevent the incoming administration from legally undermining the proposals, which are crucial for borrower relief.
These regulations were essentially a Plan B after the Supreme Court ruled the prior debt cancellation plan overstepped the Biden administration's authority.
The more expansive of the two regulations could have given the education secretary discretion to cancel loans for borrowers suffering from prolonged financial hardship.
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