Revisiting Relief for Borrowers Who Fall Through the Cracks in Discharge Programs

Borrowers who should be eligible to have their debts canceled via discharge programs are too often denied for technical reasons that undermine the programs’ intent and purpose, or are sidelined by harmful or abusive practices by rogue government contractors. Although ED has broad and longstanding statutory authority to extend loan forgiveness to any borrower at any time, ED has failed to routinely and systematically exercise this authority. Even in circumstances where Congress intended certain borrowers to receive relief through these specific programs and where those borrowers are blocked from receiving debt relief, ED chooses not to exercise its broadest authority to cancel student debt and ensure this relief is provided