Senators urge Biden to cancel student loans for 517,000 borrowers



A bipartisan group of US senators has called on President Joe Biden to cancel student loans for more than 517,000 student loan borrowers.

Here’s what you need to know.

Student loans

A unique example of bipartisan solidarity is that these US Senators, which include Republicans, Democrats and Independent MPs, are demanding the immediate cancellation of the student loan for student loan borrowers who are completely and permanently disabled. In a bipartisan, bicameral letter US Secretary of Education Miguel Cardone; US Senators Rob Portman (R-OH), Chris Koons (D-DE), Angus King (I-ME) and Tammy Duckworth (D-IL); and US Representatives Ron Kind (D-WI) and Brian Fitzpatrick (R-PA) wants the Department of Education to implement rulemaking that automatically cancels student loans for these student loan borrowers.

Why These Borrowers Didn’t Have Their Student Loan Canceled

Student loan borrowers who are completely and permanently disabled are eligible for cancellation of their federal student loans under the Higher Education Act 1965. However, according to the senators, these student loan borrowers face significant administrative difficulties in repaying their student loans. This bureaucratic hurdle includes application and income monitoring. As a result, senators write that hundreds of thousands of student loan borrowers cannot access the student loan debt relief required by law. Senators said the Department of Education has the authority to change the rules without further congressional approval.

“Although the Department has made improvements in [total and permanent disability] More can be done in recent years to address inequalities and problems in the program, ”wrote the senators. “So we continue to lead a bipartisan, bicameral effort to ensure that Americans no longer face costly delays or bureaucratic barriers to accessing the benefits they are legally entitled to. The department can eliminate unnecessary paperwork and provide borrowers with quick assistance with an interim final rule to automate payments on [total and permanent disability] program. We continue to urge the Department to respond to our request as soon as possible. ”

How the Department of Education May Change the Terms of Student Loan Cancellation

Here are the obstacles that currently exist for student loan borrowers:

  • The Department of Education currently has appropriate agreements with the US Social Security Administration and the US Department of Veterans Affairs to identify federal student loan borrowers who may be eligible for student loan cancellation due to complete and permanent disability.
  • Once identified, these student loan borrowers must apply for a student loan repayment.
  • The student loan borrowers are then tracked their income for three years to confirm that they have no income.
  • The student loan borrower must also provide additional documents.
  • If the student loan borrower fails to submit paperwork or does not meet the no-income standard, the Department of Education will reinstate the student loan borrower’s obligation to repay student loans.
  • Senators note that there is no law that would require borrowers of student loans to apply or monitor income.
  • As such, the Senators believe the Department of Education has full authority to implement automatic student loan cancellation for student loan borrowers with full and permanent disability.

On August 21, 2019, President Donald Trump signed a presidential memorandum that called for the automatic cancellation of the federal student loan for veterans with full and permanent disabilities. Senators say student loan borrowers negotiated through the US Social Security Administration were not included in this presidential memorandum. Therefore, the Senators are urging the Department of Education to issue an interim final rule that (1) provides automatic cancellation of student loans to student loan borrowers with a full and permanent disability registered with the US Social Security Administration; (2) cancel the student loan cancellation application; and (3) cancel the income monitoring period. Senators want student loan eligible borrowers to receive a full federal student loan cancellation within 90 days.

Biden Focused On Targeted Student Loan Cancellation

Student loan advocates and congressional progress advocates want Biden to accept large-scale student loan cancellation… To date, Biden has taken a different approach: he supported the cancellation of the $ 10,000 student loan, but says Congress, not the president, should cancel student loans. In the same time, Biden achieves targeted cancellation of student loan, which means that he focused on forgiving student loans for specific groups of student loan borrowers rather than canceling all student loans. For example, becoming president in January, Biden Cancels Nearly $ 3 Billion Student Loans:

  1. Biden canceled $ 1 billion student loans for 72,000 student loan borrowers.
  2. Biden canceled an additional $ 1.3 billion in student loans for 41,000 borrowers with full and permanent disabilities.
  3. Biden granted student loan exemptions to 1.1 million student loan borrowers who defaulted on their FFELP loan.
  4. Biden today canceled $ 500 million student loan debt for 18,000 student loan borrowers under the protection of the borrower in accordance with the student loan repayment rule.

Of the $ 3 billion received from student loan cancellations, Biden thus canceled $ 1.5 billion… There is no guarantee that a large-scale student loan cancellation will occur. So make sure you are actively paying off your student loans. Assess your unique financial position and choose the best student loan repayment strategy. Here are some smart ways to save money:

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