During the last month, the Biden administration granted $ 2 billion student loans to 30,000 borrowers.
Emphasizing the story of a borrower, Secretary of Education Miguel Cardona tweeted on Monday. “Overnight, one student loan debt went from over $ 40,000 to zero … and we’re just getting started.”
Is there any additional student loan allowance for my work? Yes — but the specific details remain a bit vague.
- 1 Expanding new student loan forgiveness for civil servants
- 2 Other Student Loan Forgiveness Initiative by Biden Administration
- 3 Is a wide range of student loan forgiveness coming?
- 4 References
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- 4.5 The Red Curtain – China Cuts Itself Off From The World
- 4.6 As Nadella, Musk, And Bezos Sell To Pay Less Tax, Buy Microsoft Stock
- 4.7 Biden Won’t Cancel Student Loans Before Student Loan Relief Ends
Expanding new student loan forgiveness for civil servants
Secretary Cardona’s tweet specifically mentioned the new expansion of the Biden administration’s Public Service Loan Forgiveness (PSLF) program. PSLF provides federal student loan exemptions for borrowers working full-time civil servant careers in public institutions or nonprofits. Under the new changes announced by the administration in October, the Ministry of Education will temporarily relax some of the confusing and complex rules governing the PSLF program. This allows thousands of additional borrowers to be eligible for loan forgiveness.
According to the ministry, authorities have already decided that 30,000 borrowers will be exempt from student loans of at least $ 2 billion under the expansion of the PSLF program. The ministry will also benefit thousands of additional borrowers in the coming months by taking certain steps, such as consolidating FFEL lending through the federal direct lending program and accrediting employment in public services. I expect it to be possible. The ministry suggests that the temporary PSLF exemption program continues to gain momentum, providing borrowers with an additional $ 2.82 billion student loan exemption in addition to what has already been enacted.
Other Student Loan Forgiveness Initiative by Biden Administration
The Biden administration’s student loan forgiveness initiative is not limited to the PSLF program. The Ministry of Education is also expanding the forgiveness of several other federal student loans, including:
- A $ 1.5 billion expanded federal student loan relief under Borrower Defense to Repayment, a program to cancel federal student loan debt to borrowers fraudulent by schools. The administration overturned the Trump era policy, which allowed the department to partially allow federal student loan balances. The reversal of that policy extends the relief of approved borrower defense claims.
- Cancellation of a $ 1.1 billion student loan for a former student at the ITT Institute of Technology that collapsed in 2016. Student loan cancellations are carried out under the Closed School Discharge Program. Closing their school.
- Automatic cancellation of $ 5.8 billion federal student loans under the Total and Permanent Disability (TPD) discharge program. The TPD program provides relief to borrowers with medical conditions that prevent them from maintaining substantive and profitable employment. Automatic cancellation of federal student loans under the program is available to borrowers who have already received a social security disability benefit and have a disability review period of 5 years or more. The ministry has also revoked a $ 1.3 billion loan repayment to TPD borrowers whose previous disability discharge was canceled during a pandemic because they did not comply with the post-discharge monitoring requirements of the exempted government.
Is a wide range of student loan forgiveness coming?
Still, the multi-billion dollar student loan forgiveness enacted by the Biden administration is only part of the $ 1.8 trillion of unpaid student loan debt. Borrowers, advocates, and many Democrats in Congress have urged President Biden all year round to fulfill his campaign’s promise to enact widespread cancellation of student debt. Proponents have sought to cancel student loan debt of more than $ 50,000 per borrower, but Biden has resisted and questioned whether he has the legal authority to act alone without Congress. ing. Even the $ 10,000 student loan allowance that Biden said he would support in the presidential election would eliminate the student loan debt of up to 15 million borrowers.
However, Congress was unable to pass the student loan forgiveness law. Earlier this month, Senate leader Chuck Schumer (D-NY) suggested that it wouldn’t happen because of sectarianism in both the House and Senate and the slim Democratic majority.
Last spring, the administration released a legal memo outlining the potential authority that Biden must unilaterally cancel student debt using administrative measures without having to rely on Congress to pass the bill. I promised to do it. The memo was never officially released, but student debt activists were able to obtain a significantly edited version at the request of the Information Disclosure Act. The edited memo does not provide definitive insight into whether the Biden administration will implement a large amount of student loan forgiveness. But it puts pressure on it, suggesting that the memo, which was completed a few months ago, did not act or explicitly state its intentions.
Parliamentary progressives continue to push the Biden administration to expand student loan cancellations. “There is a huge amount of presidential action. [the Biden administration] Congressman Alexandria Ocasio Cortez (D-NY) told The New York Times earlier this week. “Biden was able to do something like this with a pen stroke,” she said, and his negligence “just reminds us that he chose not to do so.” is”.
But so far, no one in the Byden administration has had a large student loan, even though a public statement by Secretary Cardona suggests that far more student loan forgiveness is underway. Does not suggest that forgiveness is imminent. Meanwhile, federal student loans will resume repayment this winter after the payment moratorium ends on January 31, 2022.
Student Loan Forgiveness Changes: Who Qualifies and How to Apply Under the Expansion of Biden’s Relief
The first wave of borrowers gets $ 715 million in student loan forgiveness under the expansion of new programs
Biden’s $ 11.5 billion Student Loan Forgiveness: Some are automatic and some are not. This is the breakdown.
Student Loan Forgiveness: Ministry of Education Clarifies Rules for New Extended Program