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Biden tries again at student loan cancellation, this time for those with financial hardships

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Biden tries again at student loan cancellation, this time for those with financial hardships

WASHINGTON (AP) — The Biden administration is moving ahead with a new path to student loan cancellation for Americans who face steep medical bills, child care costs and other types of financial hardship that prevent them from repaying their loans.

Announced Friday, the proposed rule is President Joe Biden’s third attempt at student loan cancellation as he faces repeated legal challenges from Republican states. His first plan was rejected by the Supreme Court last year, and his second plan has been temporarily halted by a federal judge in Missouri.

The new rule would have to clear a number of hurdles before it becomes official, and it’s unclear if it could be realized before Biden leaves office in three months. Like Biden’s other loan forgiveness proposals, it could face court challenges from conservatives who say it’s unconstitutional and unfair.

If finalized, the new rule would allow the Education Department to proactively cancel loans for borrowers if the agency determines they have an 80% chance of being in default on their loans within two years. Others could apply for a review to determine if they meet the criteria for cancellation.

It’s meant to help borrowers who are unlikely to ever be able to repay their loans. The Education Department estimates about 8 million Americans would qualify for cancellation.

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“For far too long, our broken student loan system has made it too hard for borrowers experiencing heartbreaking and financially devastating hardships to access relief, and it’s not right,” said Education Secretary Miguel Cardona.

Those who could be eligible include people with unexpected medical bills, high child care costs, heavy costs related to caring for relatives with chronic illnesses, and those struggling financially in the wake of natural disasters, the Education Department said.

Under the proposal, the department could use a range of factors to judge whether someone is likely to fall into default on their loans. It includes household income, age, whether they receive public benefits, and their overall debt — not just from student loans.

It also allows consideration of “any other indicators of hardship identified by the Secretary.” A loan is usually considered in default if no payment has been made in about nine months.

With about 1 million borrowers in default every year, Cardona said the new rule would prevent his agency from trying to collect money it’s unlikely to recoup.

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“Servicing and collecting on defaulted loans is not free, it costs taxpayer dollars,” Cardona said in a call with reporters. “And there’s a point when the cost of trying to collect on a defaulted loan just is not worth it.”

The proposal will enter a 30-day public comment period before it could become official. The administration said it plans to finalize the rule in 2025. It faces an uncertain future arriving less than two weeks before the Nov. 5 presidential election.

Vice President Kamala Harris, the Democratic nominee, has not detailed her plans for student debt cancellation if she wins the presidency. Republican nominee Donald Trump has called Biden’s cancellation proposals unfair and illegal.

Biden’s latest proposal is the result of a federal rules process that included experts from across higher education. Advocates pushed hard for the hardship provision, saying too many borrowers get trapped with debt they’ll never be able to repay.

The Biden administration said it has authority under the Higher Education Act, which allows the education secretary to waive debt in certain cases. It also noted that other federal agencies routinely waive debts owed to them, considering factors like “good conscience” and equity.

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It’s a similar legal argument used to justify Biden’s second attempt at student loan forgiveness, which proposes relief for groups of borrowers including those with large sums of interest and those with older loans. A federal judge in Missouri blocked that plan amid a legal challenge from Republican states.

Biden campaigned for the White House on a promise of new student loan cancellation, but his biggest plans have been halted by Republican opponents. Last year, the Supreme Court rejected a plan to forgive up to $20,000 for millions of Americans after several Republican states sued to block it.

Amid its legal battles, the administration has increasingly shifted attention to its work canceling student loans using existing programs, including one for public service workers. In total, the administration says it has now canceled $175 billion for about 5 million borrowers.

The hardship provision was originally discussed as part of the second-attempt plan that’s now on hold in Missouri, but the Education Department broke it off into its own proposal to spend more time on the details.

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The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

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US tells ASML it is concerned China may have top chip tool, Bloomberg News reports

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US tells ASML it is concerned China may have top chip tool, Bloomberg News reports
U.S. Commerce Secretary Howard Lutnick ​outlined concerns to ‌Dutch chip-equipment firm ASML’s senior leaders ​that one ​of its top-of-the-line machines ⁠may have ​made its way into ​China, in violation of U.S.-led export restrictions, ​Bloomberg News ​reported on Thursday.
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Iran hardliner behind US deal warns Tehran won’t honor agreement if Trump fails to deliver

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Iran hardliner behind US deal warns Tehran won’t honor agreement if Trump fails to deliver

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Iran’s hardline parliament speaker and key negotiator Mohammad Bagher Ghalibaf warned that Tehran would not honor its commitments under a newly signed memorandum with the U.S. if Washington fails to uphold its side of the deal, according to the media arm of Iran’s Islamic Revolutionary Guard Corps. 

“If the United States does not honor its commitments, there is no way Iran will honor its own commitments,” Ghalibaf said.

Ghalibaf’s warning was echoed Thursday by Islamic Revolutionary Guard Corps Quds Force commander Esmail Qaani, who threatened the U.S. in remarks translated by MEMRI TV, saying, “Americans should know their place and avoid confronting the Muslims.” 

Qaani added that “Trump is trembling” and warned that the U.S. “should fear not only Hormuz and Bab al-Mandeb, but many other locations as well.”

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MEET IRAN’S HARDLINE SPEAKER WHO THREATENED TO BURN US FORCES — REPORTEDLY TEHRAN’S POINT MAN FOR TALKS

The warnings came after President Donald Trump and Iranian President Masoud Pezeshkian Wednesday digitally signed a copy of the memorandum aimed at ending the war and resuming the flow of traffic through the Strait of Hormuz.

Iran’s hardline parliament speaker and key negotiator Mohammad Bagher Ghalibaf warned that Tehran would not honor its commitments under a newly signed memorandum with the U.S. if Washington fails to uphold its side of the deal.  (Majid Asgaripour/WANA)

The memorandum gives Iran major economic relief while leaving some of the most difficult nuclear questions for a final agreement to be negotiated throughout the next 60 days. Under the 14-point plan read by a senior U.S. official, Washington agreed to begin lifting its naval blockade, work with regional partners on a $300 billion reconstruction and development plan for Iran and terminate U.S., U.N. and other sanctions on an agreed schedule as part of a final deal. 

The memorandum also says all licenses, waivers and permissions needed for related financial transactions would be granted by the United States.

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In return, Iran reaffirmed that it “shall not procure or develop nuclear weapons,” and the sides agreed to resolve the fate of Iran’s stockpiled enriched material under a future mechanism, with the minimum method being on-site down-blending under International Atomic Energy Agency supervision. 

The agreement defers many of the hardest questions — including how to wind down Iran’s nuclear program — until the 60-day negotiation period for a final deal.

But the Iranian figure at the center of the deal is not a diplomat known for moderation. 

Ghalibaf, a former Islamic Revolutionary Guard Corps commander and longtime regime insider, has threatened American forces, vowed Trump would “pay the price” and built his career through loyalty to Iran’s security establishment.

The new warning underscored what experts say is the central risk of the agreement. Washington may be entering a deal with officials who can enforce Iran’s commitments but who have shown little sign of changing the regime’s long-term posture toward the U.S., Israel or the region. 

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Ghalibaf, 64, is a product of Iran’s security establishment. He rose through the ranks of the Islamic Revolutionary Guard Corps during the Iran-Iraq War, eventually becoming commander of the Islamic Revolutionary Guard Corps air force. 

He later served as Iran’s national police chief, overseeing internal security forces responsible for suppressing protests, including the 1999 student uprising, alongside Qassem Soleimani.

After transitioning into politics, Ghalibaf attempted to run for president multiple times but failed. He instead built his career through loyalty to the system, serving as Tehran’s mayor for more than a decade before becoming speaker of parliament in 2020.

FAMILIES OF IRAN’S ELITE LIVE LAVISHLY ABROAD WHILE ORDINARY CITIZENS SUFFER AT HOME

Iranian Parliament Speaker Mohammad Bagher Ghalibaf looks on as parliament members wearing military uniforms chant in support of the IRGC in Tehran, Iran, on Feb. 1, 2026. (Hamed Malekpour/Islamic consultative assembly news agency/WANA/Handout via Reuters)

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“Ghalibaf doesn’t have an independent line. His strength is that he is a ‘yes man,’” Beni Sabti, an Iran expert at the Institute for National Security Studies, previously told Fox News Digital. “If he is told to shake hands with special envoy Steve Witkoff, he will do it. If he is told to escalate, he will. It is not about moderation, it is about who gives the orders.”

“His name has also been linked to multiple corruption allegations, including misuse of oil revenues and sanctions evasion networks involving his family. His sons have reportedly been involved and are under sanctions,” Sabti said.

“There have also been public scandals involving family members traveling abroad and making luxury purchases, including widely circulated images of them arriving with numerous high-end Gucci suitcases.”

Behnam Ben Taleblu, a senior fellow at the Foundation for Defense of Democracies, said the image of Ghalibaf at a signing ceremony with a senior U.S. official would be a propaganda victory for the regime.

“There was a time when the Islamic Republic would have been terrified to be seen signing such a thing,” Ben Taleblu told Fox News Digital. “Postwar, this is a sign of the regime’s opportunism, and no one identifies that opportunism better than someone like Ghalibaf, who comes from the IRGC, who is a corrupt politician and is a wheeler and dealer.”

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But Taleblu warned that Washington should not confuse Ghalibaf’s opportunism with moderation. 

“The mirage is the myth of Iranian military moderation and the myth that, with time, this regime will integrate and put aside all the things that have kept it on the sidelines for so long,” he said. “Transforming Iran via a deal — that is a huge lift.”

Ghalibaf’s wartime statements reflect the hardline posture inside Iran’s leadership. In remarks aired on Iranian television Jan. 12 and translated by MEMRI, he warned that U.S. forces would face catastrophic consequences if they confronted Iran.

“Come, so you can see what catastrophe befalls American bases, ships and forces,” he said, adding that American troops would be “burned by the fire of Iran’s defenders.”

TRUMP ADMINISTRATION UNVEILS SWEEPING TERMS OF PROPOSED IRAN AGREEMENT

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A man lights a cigarette with fire from a burning picture of Iranian Parliament Speaker Mohammad Bagher Ghalibaf as Israelis rally in support of nationwide protests in Iran in Holon, Israel, on Jan. 14, 2026. (Ammar Awad/Reuters)

More recently, he warned that “the blood of American soldiers is the personal responsibility of Trump” and vowed Iran would “settle accounts with the Americans and Israelis,” adding that “Trump and Netanyahu crossed our red lines and will pay the price.”

John Hannah, a senior fellow at the Jewish Institute for National Security of America and a former national security advisor to Vice President Dick Cheney, said Ghalibaf’s expected role reflects the reality of who holds power inside Iran. 

“If you’re going to sign an agreement with Iran, those are the forces in charge and calling the shots, presumably with the approval of the new supreme leader,” Hannah told Fox News Digital. “If the U.S. harbors hope that Iran will ever implement any of their obligations under the MOU, these are the people — odious as they are — capable of making it happen.”

But Hannah said the central question is whether Iran’s leadership sees compliance as useful or whether the agreement is simply a tactical pause.

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“The big question is whether they see it in their interest to do so, or are they only buying time, rebuilding their power and preparing for the next round of conflict,” he said.

Ben Taleblu was even more blunt, warning that even a seemingly favorable agreement would not change the nature of the regime.

“Even if you’ve got the perfect deal, with this kind of regime, with this kind of mentality, they will escalate,” he said. “I thought we would have learned by now what the regime did after the JCPOA. It built a vast missile arsenal. It literally built an empire of terror proxies that took Israel years of blood, effort and money to dismantle, backed by American support.

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Iranian Parliament Speaker Mohammad Bagher Ghalibaf speaks during a press conference in Tehran, Iran, Nov. 27, 2024. (Majid Asgaripour/WANA via Reuters)

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“If we engage in pay-to-play with these guys,” he added, “I’m sorry to sound the alarm bell like this — but something tells me this is bad either way.”

Responding to questions about the threats from Ghalibaf and IRGC Quds Force commander Esmail Qaani, the White House defended Trump’s approach and warned Iran would face consequences if it failed to reach a final deal.

“President Trump has a great track record of good deals for the American people, and the President has been clear about the consequences if Iran fails to make a good, final deal,” White House spokeswoman Olivia Wales told Fox News Digital. 

“What the president has achieved on the battlefield and at the negotiating table is nothing short of remarkable and will strengthen American security for many years to come.”

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US-Iran talks postponed as Israel attacks Lebanon

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US-Iran talks postponed as Israel attacks Lebanon

Tehran holds back from talks to cement ceasefire due to ongoing Israeli attacks on southern Lebanon.

Planned talks in Switzerland between the United States and Iran to discuss the technical terms of their ceasefire deal have been postponed.

The Swiss Foreign Ministry confirmed early on Friday that the talks, which were scheduled to take place in Burgenstock, would now not go ahead.

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Reports suggest that Iran has delayed sending its delegation to discuss the technical issues linked to the ceasefire deal – digitally signed by the two countries on Wednesday – due to Israel’s ongoing military campaign in Lebanon.

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Israeli strikes overnight and into Friday have reportedly killed at least 16 people in southern Lebanon, with Iran-linked Hezbollah reporting intense fighting.

Talks postponed

A ceremony followed by talks was expected to be held at the Burgenstock Resort in Stansstad, near Lucerne in central Switzerland.

It is owned by Katara Hospitality, part of Qatar’s sovereign wealth fund, which helped mediate peace in the conflict.

On Friday, in a message to media outlet AFP, the Swiss foreign ministry said: “The planned talks between the US, Iran, Qatar and Pakistan have been postponed”.

“Switzerland remains ready to facilitate these talks. The relevant preparatory work at Burgenstock is continuing,” it added, without providing a new date for the talks.

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The announcement followed a report from media outlet Al-Mayadeen that Iran was delaying sending its delegation to Switzerland over Israel’s ongoing military campaign in Lebanon.

Israeli Prime Minister Benjamin Netanyahu said Thursday that Israel’s military will stay in a “security zone” of southern Lebanon as long as “Israel’s security needs require it.”

Israel and Hezbollah are not parties to the agreement, but Iran has insisted Israel must withdraw from the large swath of southern Lebanon it is occupying.

Logistics have never been ‘simple or predictable’

The US push to quickly begin high-stakes talks with Iran hit a snag just two days after the signing of a 14-point memorandum of understanding with the US that sets out a framework for talks during a 60-day negotiation period.

Vice President JD Vance had been prepared to make an overnight flight to meet with his Iranian counterparts at the mountainside resort in the tiny Swiss village of Obburgen.

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His staff and a small pack of journalists had even gathered at Joint Base Andrews outside Washington in anticipation of the trip.

Meanwhile, dozens of White House officials, advance staffers and more media gathered in Switzerland to prepare for Vance’s anticipated arrival.

But then, abruptly on Thursday evening, the trip was called off.

The White House issued a statement explaining Vance – who has been tapped by President Donald Trump to lead the negotiations – and his delegation were prepared for talks, but they were unable to finalise plans and the vice president would remain in Washington.

“The logistics of these negotiations have never been simple or predictable,” the statement noted.

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Also on Thursday, Pakistan’s Prime Minister Shehbaz Sharif cancelled his trip to Switzerland, his spokesperson told AFP.

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