President Biden's administration has officially scrapped its unfinished rules for broad student-loan forgiveness, signaling a significant pivot from earlier announced plans.
The department said that withdrawing these regulations will give future stakeholders the flexibility to craft new forms of relief, especially given the uncertainty the incoming administration brings.
While the rule was never finalized, a group of GOP-led states filed a lawsuit in September to block its implementation, complicating the landscape for debt relief.
The Education Department said it still stands by the legality of the debt relief, stating that it believes the relief is authorized under the Higher Education Act.
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