Biden's latest student debt plan would provide a financial relief path for borrowers on the brink of ruin.

• On Friday, the Biden administration unveiled a plan to provide loan forgiveness to millions of individuals who are currently facing financially challenging circumstances.
• Despite being the president who has forgiven the most student debt, Joe Biden's most ambitious plans have been hindered by legal challenges led by Republicans.
• Those with high medical expenses or child care costs could potentially receive relief under the latest proposals.

On Friday, the Biden administration unveiled a new plan to provide student loan forgiveness to individuals facing "severe financial difficulties."

Examples of a hardship that could make a borrower eligible for aid include economic ruin due to a natural disaster or a massive, unexpected medical bill.

On a call Thursday, an Education Department official informed reporters that some borrowers would automatically see loan relief, while others would need to apply for it.

Our student loan system has been broken for too long, making it difficult for borrowers facing financial hardships to access relief, which is not fair, according to Education Secretary Miguel Cardona.

The Education Department under President Joe Biden has made the latest attempt to erase individuals' education debts through an announcement.

Although Biden has granted more student loan forgiveness than any previous president, his most ambitious plans have been hindered by Republican-led legal challenges.

Nearly 8 million student loan borrowers facing severe hardship could potentially receive relief under the latest proposed rule, which is likely to face further lawsuits.

Officials announced that borrowers with persistent financial burdens that prevent them from repaying their student loans and for whom the department's existing aid options don't fully help could receive loan cancellation.

The Biden administration aims to finalize the proposed regulations in 2025, which could be published in the Federal Register within weeks.

The department's efforts to implement wide-scale student loan forgiveness are currently being hindered by court challenges led by the GOP.

The fate of these relief efforts may be influenced by the results of the presidential election in November.

The former president, Donald Trump, opposes policies aimed at reducing or eliminating student loan balances, while the current Democratic vice president, Kamala Harris, supports these measures.