The final step of Biden's student loan forgiveness plan is being implemented, according to an expert. Here's what borrowers need to know.

• Millions of Americans are still waiting for the Biden administration to deliver sweeping student loan forgiveness.
• The "Plan B" for student loan cancellation has been submitted to the Office of Management and Budget for review.
• Before the policy is published in the Federal Register, a higher education expert, Mark Kantrowitz, stated that the OMB review is the final step.

The Biden administration is continuing to work towards providing comprehensive student loan forgiveness to millions of Americans prior to President-elect Trump's inauguration.

The Office of Management and Budget is currently reviewing the "Plan B" for student loan cancellation submitted by the U.S. Department of Education.

Before a policy is published in the Federal Register, it undergoes an OMB review, according to higher education expert Mark Kantrowitz.

Kantrowitz stated that once the rule is published, the Education Department could potentially decrease or eradicate individuals' loans.

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In June 2023, President Joe Biden started working on a revised student loan relief plan after the Supreme Court blocked his initial program. The updated policy aims to provide relief to various borrower groups, such as those who have been repaying for decades or attended deceptive schools.

Kantrowitz stated that the Biden administration is still striving for student debt relief, despite being in the final days of his presidency.

The Education Department may attempt to clear loans for those facing financial difficulties through a second rule currently under OMB review, according to experts.

Earlier this year, an Education Department spokesperson stated that the loan cancellation could be beneficial to borrowers who have persistent financial burdens and cannot repay their student loans, as well as those for whom the department's existing aid options do not fully help.

Despite Biden's efforts to provide relief to millions of students through loan forgiveness, legal challenges from Republicans have hindered his progress.

New lawsuits from consumer advocates are expected to seek an immediate injunction against Biden's latest forgiveness plans as soon as they are published in the Federal Register.

A spokesperson for the U.S. Department of Education declined to comment.

Advocates and lawmakers are urging Biden to act quickly to provide relief to student loan borrowers before the new administration takes office.

Trump and Vice President-elect JD Vance are vocal critics of student loan forgiveness.

A national poll from mid-May by the University of Chicago Harris School of Public Policy and The Associated Press-NORC Center for Public Affairs Research found that only 15% of Republicans consider student loan forgiveness important, compared to 58% of Democrats.

According to Braxton Brewington, spokesperson for the Debt Collective, if Biden fails to act within the next four weeks, tens of millions of working people will suffer for four years.

A group of lawmakers, including Sen. Bernie Sanders and Ed Markey, wrote a letter to Education Secretary Miguel Cardona, requesting that the Department of Education forgive the debt of borrowers who were defrauded by their colleges.

The Education Department was requested by lawmakers to process approximately 400,000 pending borrower defense applications. These borrowers may be eligible for discharge if their schools closed unexpectedly or if they were deceived by their colleges.

"During the previous Trump Administration, borrowers' applications were left to gather dust for years, and if their application was reviewed, they were frequently denied any relief."