Student loan borrowers could soon wipe out debt for hardship

The US Education Department proposed new rules that would make it easier for student loan borrowers to get debt relief. The rules would let the Secretary of Education cancel all or part of federal student loans if a borrower proves hardship.

Until now, student loan relief was tied to specific programs, like income-driven repayment or borrower defense claims. This proposal creates a new, broader path for relief based on a borrower's general hardship, shifting the cost of unpayable loans from individuals to the government. It could open up debt cancellation to many more people than current programs allow.