The Department of Education (ED) held a virtual negotiated rulemaking session last week regarding student loan forgiveness for those with financial hardship. The negotiated rulemaking session was the fourth and final round of negotiated rulemaking on student debt relief, following three rulemaking sessions on student loan debt relief last year, aimed at debt relief for several categories of borrowers.

Ahead of this week’s session, the Department of Education released draft regulatory text on Thursday, February 15. The proposal listed numerous factors that the Secretary could use to determine if a borrower is eligible for forgiveness due to hardship. It also included language allowing ED to offer immediate relief for those at least 80 percent likely to default within the next two years.

Some language from the proposal was tweaked, and ED added language clarifying that an application for debt relief is not required. Consensus was reached, as there was no dissent among members of the negotiated rulemaking committee. While most representatives on the negotiated rulemaking committee gave a thumbs up, the representative for for-profit institutions gave a sideways thumb, and the representative for servicers abstained.

The Department has previously said it aims to release the plans for public comment in May. Rules finalized by November 1 go into effect July 1 of the following year. ED could take action to implement provisions of the final rule earlier, using its authority under the Higher Education Act (HEA). Legal challenges are expected. ED’s negotiated rulemaking page may be accessed here.