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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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Trump FBI pick Kash Patel clears Senate panel, headed for confirmation vote

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Trump FBI pick Kash Patel clears Senate panel, headed for confirmation vote
President Donald Trump’s pick to head the FBI, Kash Patel, won the approval of the Republican-controlled U.S. Senate Judiciary Committee on Thursday, clearing the way for a vote to confirm a director who has called for a radical reshaping of the nation’s top law enforcement agency.
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Russia claims Trump, Putin talk brought world from 'brink of Apocalypse,' EU warns of 'dirty tricks'

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Russia claims Trump, Putin talk brought world from 'brink of Apocalypse,' EU warns of 'dirty tricks'

Russia’s deputy chairman of the Security Council, Dmitry Medvedev, on Thursday claimed that the recent discussion held between President Donald Trump and Russian President Vladimir Putin brought the world back from the “brink of the Apocalypse.”

“It just so happened at some point that the U.S. appointed itself the country-in-chief on our planet with the exclusive right to wage a hybrid war against our people, to mete out justice and grant pardons. It was a grave mistake, which nearly wiped humanity off the face of the earth,” he said, without mentioning that the West united behind Ukraine against Russia after Moscow launched the biggest invasion of a European nation since World War II.

“This is a lesson that must be learned by the arrogant American elites and the so-called deep state,” he continued. “The quicker our adversaries realize this, the better.

“If they don’t… the Doomsday Clock will keep on ticking towards midnight,” he added, threatening nuclear escalation. 

President Donald Trump speaks to reporters from the White House after he spoke with Russian President Vladimir Putin on ending the war with Ukraine on Feb. 12, 2025. (AP/Alex Brandon)

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UKRAINE ADVOCATES TEAR INTO HEGSETH FOR GIVING RUSSIA ‘CONCESSIONS’ AT START OF PEACE TALKS: ‘BIGGEST GIFT’

Trump once again prompted geopolitical shock waves following his Wednesday call with Putin when he said in a Truth Social post that peace talks will start “immediately” – comments that came just hours after U.S. Defense Secretary Pete Hegseth said it was unrealistic that Ukraine would be allowed to join the NATO alliance. 

European leaders were quick to react with concern to comments from both Washington and Moscow, including EU foreign policy chief Kaja Kallas, who told Fox News Digital, “It’s not wise to surrender Russia’s key demands before the negotiations even start.”

“Any peace agreement requires the full involvement of both the Europeans and the Ukrainians to succeed,” she continued. “Quick fixes are just dirty deals.

“Putin only responds to strength. Ukraine is resisting Russia’s invasion, and they have our full support. A bad deal for Ukraine is a bad deal for America and will embolden China,” Kallas said. 

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Kallas’ comments came after she met with NATO defense ministers, who similarly came out in support of Ukraine and issued warnings to Washington. 

Lithuania Defense Minister Dovile Sakaliene said NATO leaders are facing “difficult discussions” with “two obvious choices.”

“Whether we decide to fall under the illusion that Mr. Trump and Mr. Putin are going to find a solution for all of us – and that would be a deadly trap,” she said. “Or we will, as Europe, embrace our own economic, financial and military capacity. And we will be the ones who will be deciding what will happen in Europe and in Ukraine with the United States.”

North South Summit

Swedish Prime Minister Ulf Kristersson, Italian Prime Minister Giorgia Meloni, Finnish Prime Minister Petteri Orpo, EU foreign policy chief Kaja Kallas and Prime Minister Kyriakos Mitsotakis of Greece attend a press conference in Saariselka, Finnish Lapland, Dec. 22, 2024. (Lehtikuva/Antti Aimo-Koivisto via Reuters)

In addition, Estonia Defense Minister Hanno Pevkur warned, “We have to understand that there will be no peace without Ukraine. 

“It cannot be so that someone will come and say when to talk. It has to be Ukraine,” he added. 

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Russian presidential spokesperson Dmitry Peskov on Thursday said Putin would be “pleased” to welcome international leaders, including Trump, to Moscow in May.

European leaders reacted with apparent concern to Trump’s and the Kremlin’s comments and said there can be no peace agreement without direct EU and Ukrainian involvement.

SOME CRITICS WORRIED TRUMP WOULD HAVE UKRAINE GIVE UP TOO MUCH FOR PEACE AGREEMENT WITH RUSSIA

Similarly, U.K. Prime Minister Keir Starmer said, “There can’t be any negotiations about Ukraine without Ukraine being at the heart of it.”

Seven European leaders from the U.K., France, Germany, Poland, Italy, Spain and the EU released a joint statement on Wednesday and insisted that they should be part of any negotiations on Ukraine’s future. 

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“Our shared objectives should be to put Ukraine in a position of strength,” the statement said. “Ukraine and Europe must be part of any negotiations.”

Volodymyr Zelenskyy speaks during a press conference

President Volodymyr Zelenskyy confirmed he spoke with President Trump on Feb. 13, 2025, about ending the war with Russia. (AP Photo/Laurent Cipriani)

Ukrainian President Volodymyr Zelenskyy earlier this week said he would be willing to exchange the land Ukraine has seized in Russia for the land occupied by Moscow’s troops in its eastern regions. 

The Ukrainian president said he also spoke with Trump following his call with Putin on Wednesday about a “lasting, reliable peace.”

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Hamas says three captives to be released amid ceasefire deal collapse fears

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Hamas says three captives to be released amid ceasefire deal collapse fears

Hamas says it will release captives according to timeline set out in truce after fears agreement would not hold following Israel’s violations.

Hamas says it is committed to the release of captives held in Gaza according to a timeline set out in a ceasefire, days after fears arose that the truce would not hold following Israel’s violation of the agreement.

In a statement released on Thursday, Hamas said it “confirms continuation in implementing the agreement in accordance with what was signed, including the exchange of prisoners according to the specified timetable”.

Hamas spokesperson Abdul Latif al-Qanoua also confirmed to the Anadolu news agency that the group will release captives on Saturday if Israel adheres to the terms of the ceasefire.

“The [Israeli] occupation has violated the agreement multiple times, whether by preventing the return of displaced people or blocking the entry of humanitarian aid,” he said. “If Israel does not adhere to the terms of the agreement, the prisoner exchange process will not take place.”

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A Palestinian source quoted by AFP news agency said on Thursday that mediators had obtained from Israel a “promise … to put in place a humanitarian protocol starting from this morning” that would allow construction equipment and temporary housing into the devastated territory.

The Hamas statement added that talks being held this week in Cairo aimed at overcoming an impasse in implementing the deal had been “positive”.

Later on Thursday, Israel said Hamas must release three living captives on Saturday or Israel will return to war.

This week, the agreement with Israel has come under severe strain.

Hamas warned it would delay the next release of captives scheduled for Saturday due to Israel violating the truce by shooting Palestinians in Gaza and not allowing the agreed-upon number of tents, shelters and other vital aid to enter the besieged enclave.

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Israel responded by saying that if Hamas failed to free captives according to the schedule, it would resume its war.

Since the ceasefire went into effect on January 19, Israeli forces have killed at least 92 Palestinians and wounded more than 800, according to the Palestinian Ministry of Health.

A Hamas delegation arrived in Cairo on Wednesday to discuss the ceasefire with mediators Egypt and Qatar.

Egyptian state-linked media said heavy equipment and trucks carrying mobile homes were ready to enter Gaza from Egypt on Thursday. The AFP news agency shared images showing a row of bulldozers on the Egyptian side of the border.

However, Israel later said they would not be allowed to enter through the crossing.

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“There is no entry of caravans or heavy equipment into the Gaza Strip, and there is no coordination for this,” Omer Dostri, a spokesperson for Prime Minister Benjamin Netanyahu, wrote on X, adding: “No goods are allowed to enter the Gaza Strip through the Rafah crossing.”

Bulldozers and trucks carrying caravans wait to enter Gaza at the Rafah border crossing between Egypt and Gaza [Mohamed Arafat/AP Photo]

Hamas has previously accused Israel of holding up the delivery of heavy machinery needed to clear the vast amounts of rubble across the enclave.

United States President Donald Trump had warned this week that “hell” would break loose if Hamas failed to release “all” the remaining captives by noon (10:00 GMT) on Saturday.

If fighting resumes, Israeli Defence Minister Israel Katz said: “The new Gaza war … will not end without the defeat of Hamas and the release of all the hostages.”

“It will also allow the realisation of US President Trump’s vision for Gaza,” he added.

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Trump, whose return to the White House has emboldened the Israeli far right, caused a global outcry over his proposal for the US to take over the Gaza Strip and move its 2.3 million residents to Egypt or Jordan.

The Gaza truce, currently in its first phase, has seen Israeli captives released in small groups in exchange for Palestinians in Israeli custody.

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