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The US Department of Education announced a new student debt relief initiative this morning aimed at eliminating student loan burdens for nearly 8 million borrowers with significant financial hardship.

"The rules proposed by the Biden-Harris Administration today would provide hope to millions of struggling Americans whose challenges may make them eligible for student debt relief," said Miguel Cardona, the Secretary of Education, in the Oct. 25 press release.

The newest student loan debt relief plan would assist borrowers facing continuous financial struggles who do not qualify for enough aid under another forgiveness option. Borrowers who have an 80% chance of defaulting on their student loans in the next two years could automatically receive loan forgiveness. Other borrowers will need to apply for debt relief.

The Biden administration's recent attempts at student loan forgiveness have faced legal backlash. The White House's first attempt at broad student loan forgiveness was shot down by the Supreme Court last year. Its latest widespread debt relief plan and forgiveness efforts through the Saving on a Valuable Education repayment plan are both on hold, pending final decisions from federal courts.

The final rules for this plan will be published in the next few weeks, according to the press release. From there, the public will have 30 days to respond with comments at Regulations.gov. If the debt relief plan passes, it's expected to be finalized in 2025.