The Biden administration recently announced that it would forgive $ 5.8 billion in outstanding student loans to more than 300,000 Americans with disabilities. This is the third round of student loan forgiveness this year, administration officials said. Luck…
While $ 8.7 billion seems like a lot to forgive student loans (and it is), borrowers have an astounding $ 1.7 trillion in total debt. However, the administration is taking steps to clear student loan arrears. This is who at the moment has the right, how much and what progressive legislators continue to push for the abolition of the student loan.
Who has the right:
On March 18, it was announced that students from the American Career Institute, Corinth Colleges and the ITT Institute of Technology would receive a student loan forgiveness. Cause? These institutions have been involved in illegal or deceptive activities. When it was announced, 72,000 borrowers with a total debt of $ 1 billion were eligible for forgiveness for their approved claims. Additional information from the US Department of Education. here…
It was announced that more institutions were involved in shady practices. Consequently, students from Marinello Beauty Schools, Accountability Institute, and Westwood College were also eligible for forgiveness. It was announced on July 19 that 1,800 students with a total debt of $ 56 million have approved claims. Additional information from the US Department of Education. here…
Most recently, on August 19, the Department of Education announced a pardon for 323,000 disabled borrowers with a total of $ 5.8 billion in student loan debt.
According to Education department, here’s how to get tested and how forgiveness will be distributed:
The change will apply to borrowers who are identified by matching existing data with the Social Security Administration (SSA). It kicks off with a September quarterly match with SSA. The Department is also announcing two other TPD-related policy items today. First, the Department will indefinitely renew a policy announced in March to stop asking these borrowers to provide information on their earnings – a process that leads to loan recovery if and when borrowers do not respond – after the end of the country’s emergency. Second, the Department will then secure the cancellation of the three-year monitoring period required by current regulations during the agreed rule-making, which will begin in October.
For more information at the U.S. Department of Education here…
But what are progressive legislators fighting for?
President Joe Biden made an election pledge to cancel at least $ 10,000 on all student loan borrowers. This promise has not yet been fulfilled. Progressive lawmakers such as Senator Elizabeth Warren, Massachusetts, continue to insist that all borrowers owe at least $ 50,000.
Earlier this year, Warren and Senate Majority Leader Chuck Schumer wrote a letter to the Biden administration suggesting this. v letterThey wrote their inquiries on behalf of borrowers of American student loans:
• Recognizes the Secretary of Education’s broad administrative power to cancel federal student debt of up to $ 50,000, using the power of change and compromise that Congress has already granted to the Secretary of State by law;
• Calls upon President Biden to take executive action to administratively cancel federal student loan debt of up to $ 50,000 for federal student loan borrowers using existing legal authority under section 432 (a) of the Higher Education Act 1965 and any authority available under the law;
• Calls on President Biden to use executive powers under the 1986 Tax Code to prevent debt write-offs from creating tax liabilities for borrowers;
• Calls upon President Biden, in taking such executive action, to ensure that debt relief helps close the racial wealth gap and avoids the bulk of the richest borrowers in federal student debt relief benefits; and
• Calls on President Biden to continue to suspend student loan payments and interest accumulation for federal student loan borrowers for the duration of the COVID-19 pandemic.
Several months ago, the Department of Education and the Department of Justice were asked to review the legality of President Biden taking executive action and canceling a $ 50,000 student loan per borrower, the spokesman said. Jen Psaki…
“The President continues to support the cancellation of student debt to make life easier for students and their families,” said Psaki. tweeted in february… “Our team is looking to see if there are any steps he can take through executive action, and he would be delighted to have the opportunity to sign a bill sent to him by Congress.
“The President told Senators Schumer and Warren that as soon as this team is in the Justice Department, they certainly won’t; they are not confirmed at this time – he will ask them to undertake a legal review of his powers to act as an executive, coupled with a review of the Domestic Policy Council’s policy towards his executive branch – on how the executive is taking debt relief measures, if any, should be targeted “, Psaki also said back in February.
While Biden truly believes he can take such executive action, Warren believes he can.
- READ MORE: President Joe Biden pledged to write off some of his student loan debt after he was elected, a few months later that’s where he is.
“President Biden can write off his $ 50,000 student loan debt with a stroke of a pen. He doesn’t need Congress to act, he can do it himself, and I hope he does it, ”Warren said. Insider, back in June.
Higher education expert Mark Kantrowitz told CNBC three months ago, “President Biden is still waiting for the US Department of Justice and the US Department of Education to report their review of his legal authority to write off student loan arrears based on executive order.”
“Only after he receives this report, which I expect to find that he has no legal authority, will the ball be in Congress,” he added.
While progressive Democrats like Warren continue to push the president to cancel more student loans for a borrower, the president still hasn’t made a decision or plan to do so.
However, student loan payments have been suspended during the coronavirus pandemic. However, the suspension has been extended and will only last until January 31, 2022.
In accordance with Federal student aid, these are the relief measures:
• suspension of loan payments
• interest rate 0%
• stopped collecting overdue loans
Read more about student loan repayment here…