Biden’s Student Loan Forgiveness Program: Biden has wiped out student debt for 700,000 people. Before the announcement, students had to wait years for the Department of Education to process their forgiveness claims.
Now, the biden administration has approved more than $17 billion in debt cancellations, and has approved more than 1,800 borrower defense claims through July 2021.
Those numbers are staggering, and Biden’s student loan forgiveness program is certainly a good thing. Here are five ways the program will continue to help Americans pay off their debts. Follow chopnews to get more updates
Biden’s Student Loan Forgiveness Plan
The Obama administration has faced criticism for the decision to extend the payment pause. Economists say that the extension will only fuel price hikes as more people will have more money to spend.
The payment pause also has added political pressure for biden supporters. The Education Department faces logistical problems when restarting its payment collection system. In addition, it must repair long-standing administrative failures.
Some Democrats have argued that President Joe Biden should be given the authority to cancel student debt. Some believe Biden is considering action in this area.
Democratic Representative Tony Cardenas of California met with members of the Congressional Hispanic Caucus on Monday and asked the Vice President whether he would cancel up to $10,000 of student debt per borrower.
The Congressional Hispanic Caucus is a staunch supporter of Biden’s executive authority to cancel federal student loan debt.
While bipartisan agreement on these issues is difficult to find, it is important to remember that Democrats and Republicans both have their own plans to solve this crisis.
The current situation is dire for students and it’s vital that both sides make the necessary changes. The pause on student debt cancellation is a political hot potato.
With midterm elections coming up, Democrats are under pressure to show progress in the area of student debt cancellation. They have pointed to the economic impact of the student debt pandemic and long-standing problems with the student loan system.
The new bill to restrict the ED’s authority to cancel federal student loan debt is unlikely to pass the Democratic-controlled House.
However, it should be noted that the recent travel ban has already drawn judicial scrutiny. This could result in a legal challenge against the bill.
Although the ED’s authority to cancel federal student debt has been used to support President Trump’s ability to pause payments during a pandemic, the bill would eliminate the power granted to the president in the HEOA.
The bill would also prevent the ED from issuing any further extensions to the payment pause. The aim is to force repayments to resume on May 2 as scheduled.
A group of Republican lawmakers in the House has already introduced a bill to stop the pause, but it is still a long way off.
So, while the president’s executive order is important, the bills to limit the president’s authority to cancel federal student loan debt should not be overturned by the current legislation.
While the White House prefers that the president handle the student loan relief issue, Republicans in Congress are not backing the president’s decision.
Senate Democrats do not have the votes to make good on Joe Biden’s campaign promise. Biden has indicated that allowing the president to forgave $50,000 of student debt would be tantamount to giving college graduates a handout.
In addition to the Democratic and independent sides, Republican lawmakers are firmly opposed to the idea. South Dakota Senator John Thune, for example, has introduced a bill to prevent any cancellation of federal student loan debt.
Biden administration has already cancelled more than $17 billion in debt
While the president and vice president have said that billionaires and millionaires should not benefit from student debt relief, his actions have delivered targeted student debt relief to over 725,000 borrowers, including more than $3 billion in debt cancellation for borrowers defrauded by for-profit colleges.
Regardless of how the Biden administration handles student debt, these actions are a good start. Whether or not these actions will lead to further debt relief remains to be seen.
This cancellation of student debt could help millions of Americans pay off their debts. According to a White House spokesperson, the current administration has already discharged over $17 billion in student loan debt.
The administration has also extended the payment pause for 41 million borrowers, and cancelled debt for at least 725,000 borrowers. This move could have particular implications for African Americans.
According to the Education Data Initiative, the average Black college graduate owes $25,000 more than their white counterparts, and nearly half of them owe over twelve percent of the amount they borrowed.
By contrast, 83% of white graduates owe less than 12 percent of the total amount they borrowed.
In addition to the debt cancellation for borrowers, the new program is also intended to give additional forgiveness to older borrowers.
Currently, the Biden administration is allowing 3.6 million borrowers to receive three years extra credit toward income-driven repayment forgiveness.
In addition, the new program has added more than $17 billion to the total amount of debt forgiveness. This is a tremendous relief for many people and the government is doing all it can to help.
President Biden’s record on student loan debt relief is not without its flaws. The Biden administration has rejected many requests for more student debt forgiveness, including those requesting a maximum of $50,000 per borrower.
Still, the president has acted to ease the student loan burden for borrowers by extending the pause on payments until September and extending the zero-growth period for student loans until the first of 2022.
Biden administration has approved additional 1,800 borrower defence claims in July 2021
The Biden administration announced Thursday that it will approve another $1 billion in relief for borrowers who went to closed schools. Those who attended closed schools, such as Marinello Schools of Beauty in Florida, will get a 100 percent loan discharge. As for the rest of us, we’ll have to wait and see if we’re one of the next hundreds of borrowers.
Since President Trump’s departure, the Biden administration has made some progress in reducing the backlog. This past June, the education department approved relief for over 18,000 former students of ITT Technical Institute.
In July, the administration approved an additional 1,800 borrower defence claims from three smaller schools. Despite these small accomplishments, the backlog of loans approved by the Obama administration is still higher than it was when the president left office.
The Biden administration has cancelled student loans for nearly 92,000 people, clearing up a backlog that was left behind by the previous administration.
These new approvals will continue to be fair and expedient. The administration hopes that this will serve as a warning for the institutions.
It’s worth noting that this new rule was supposed to be implemented months before the president took office, but it’s better late than never.
The U.S. Department of Education has announced a new rule to eliminate debt owed to for-profit colleges. The new borrower defence rule will wipe out about $55.6 million in debt for more than 1,800 borrowers.
The relief will also cover borrowers who attended the Marinello Schools of Beauty, Court Reporting Institute, and West wood College.
It’s the first time since 2017 that other schools besides Corinthian Colleges have been approved for borrower defence claims. A total of 115,000 students will have their student loan debt eliminated.
A new bipartisan bill – H.R. 3684 – has passed in the Senate. This legislation will make it easier for borrowers to file borrower defence claims and get the relief they need.
But what about the American Jobs Plan? It’s expected to create over 1.8 trillion jobs in the coming years and include $550 billion in new federal spending.
The money will go toward building and funding infrastructure projects, as well as reducing federal student loan payments for more than one million students.
The U.S. Department of Education has approved approximately $415 million in borrower defence claims. Of these, almost 16,000 student borrowers will receive relief.
In addition, DeVry University will be reimbursed $71.7 million for making widespread false claims about its job placement rates. The government expects to approve additional 1,800 claims in July 2021.
But this isn’t a guarantee. It’s important to know that you’re not alone. If you’re a borrower, you need to know your rights.