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Biden Administration’s Student Debt Forgiveness Plan Gets an Update.


Student debt relief⁢ activists participate in a rally at the U.S. Supreme Court.(Photo by Kevin Dietsch/Getty ⁢Images)

OAN’s Brooke Mallory
11:52 AM – Tuesday, October 31, 2023

Following ‍the Supreme Court’s June decision to overturn President Joe‌ Biden’s expansive debt relief proposal for the pandemic era, ⁤the Biden ⁢administration is now reportedly proposing a new ‌plan​ to ⁤cancel student​ loans.

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A proposal for student‍ debt relief ‌was unveiled⁣ by the Education Department⁣ on Monday.

It would target four‍ groups of borrowers:

  • Those‍ with‍ federal ⁢student loans that ⁤have balances greater than the original amount borrowed
  • Those whose loans⁤ were repaid more‌ than 25 years ago
  • Those whose ⁣loans were for⁤ career training programs that⁢ resulted ‌in “unreasonable debt loads or provided insufficient earnings”
  • Those who are eligible for ​forgiveness under​ other repayment ⁣plans but have not applied for it

A fifth group of borrowers, those “experiencing financial hardship that the current student ‍loan system does not currently ⁣adequately address,” were⁤ also being considered in the plans.⁤ However, this group of borrowers⁣ does not hold a guaranteed spot currently.

“President Biden and I are committed to helping borrowers ‍who’ve been failed ​by⁢ our ​country’s broken and‍ unaffordable student loan system,” said Education Secretary Miguel Cardona‍ in a statement, including that the aid would build upon ​$127 billion in loan forgiveness that the ​Biden administration approved for ​about 3.6 million borrowers.

“We ​are fighting⁣ to ensure that student ⁢debt does not stand in⁤ the way of opportunity or prevent borrowers from realizing the benefits of ‌their higher education,” he ⁣included.

This month, the White ​House declared that an⁣ extra $9 billion in aid will be provided to around 125,000 Americans.

After ⁢the Supreme Court rejected Biden’s expansive ⁤pandemic-era debt relief proposal in ⁣June, federal student loan ⁢payments started up again for the​ first time ​in more than three years.

An estimated 43 million ⁤borrowers‌ were scheduled ⁢to have their college ⁤debt ‌forgiven up ​to $20,000 under the​ president’s prior plan for student debt relief. Following the Supreme Court’s invalidation of the original plan, ⁣Biden announced additional choices for debt‍ repayment.

He claimed that​ borrowers⁤ would ​be able to participate in a ​12-month “onramp repayment program” ‍in order to reduce⁢ their chance of default once loan installments started in October. According⁢ to Biden,​ if ‌a student has ⁤missed payments during that 12-month period, ⁣the Education Department will not report them​ to credit bureaus.

Furthermore, the‍ current president declared ​that ⁢he would reduce ⁣the monthly ceiling on discretionary money allocated to student loans for undergraduate studies from 10%⁤ to 5%.

In his first proposal, Biden ⁣claimed that he would reduce debt through a 2003 statute ​known⁤ as ‌the Higher⁢ Education Relief Opportunities for Students Act, or HEROES Act. ​According to‍ this​ statute, in order to lessen ⁢the financial burden ⁤caused by a national⁢ emergency, the government​ may grant relief for student debts.

Stay informed!⁢ Receive breaking news blasts directly to your​ inbox ⁢for free. Subscribe here. https://www.oann.com/alerts

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How has the Biden administration⁤ adjusted its approach to student ⁣debt relief following the Supreme Court’s rejection of its previous proposal

⁢The Biden administration is reportedly ⁣proposing⁣ a new ‌plan to cancel student loans following the Supreme Court’s decision to overturn President Joe Biden’s extensive debt relief ⁤proposal for the pandemic era. The proposal for student debt⁢ relief was unveiled by the ⁤Education Department ‍on Monday and aims to target four groups of borrowers.

The first group includes those with⁤ federal student loans that have balances greater than the⁢ original amount borrowed. The ⁤second group consists of borrowers who have repaid their loans more than 25 years ago. The third group ‍comprises borrowers whose loans were for career training programs that resulted ⁢in “unreasonable debt loads or⁣ provided insufficient earnings.”​ The fourth group⁢ includes borrowers‌ who are eligible for forgiveness under other repayment plans but have not applied for it.

A fifth group of borrowers, those ‌experiencing financial hardship that the current student loan system does not adequately ⁢address, is ‌also being considered in the ⁢plans. ‌However, this group does not currently have a guaranteed spot.

Education Secretary Miguel Cardona stated that President Biden and ‍himself are committed to helping⁣ borrowers who have been ‌failed by the country’s broken ⁢and unaffordable student loan system. He mentioned that the proposed aid would build upon the $127 ‍billion ⁢in loan ​forgiveness⁣ that the Biden⁤ administration had already approved​ for about 3.6 million borrowers. Cardona added that they are fighting to ensure‌ that student debt does not hinder opportunity or prevent borrowers from realizing the benefits of their higher education.

In addition, the ⁤White House announced that an extra $9 billion in aid‌ will be provided to around 125,000 Americans⁣ this‍ month. Since the Supreme Court rejected Biden’s previous debt relief proposal, federal student‍ loan payments have resumed for⁣ the first time in over three years.

Under Biden’s ‌prior plan, an estimated 43 million borrowers ⁣were scheduled to have their college debt forgiven up to $20,000. However, following the Supreme⁣ Court’s invalidation of the original plan, Biden introduced additional‌ choices for debt repayment. He ⁣announced a 12-month “onramp repayment ⁤program” to help⁢ borrowers reduce their chance ‍of default ⁤once loan installments started in⁤ October. ‍During this period, missed ‌payments ​would not be reported to credit bureaus by the Education ‌Department.

Furthermore, ⁣Biden reduced the monthly ceiling ‌on discretionary money allocated‍ to student loans for‌ undergraduate studies from 10% to 5%.

Biden initially aimed to reduce student debt through the‌ Higher Education ‍Relief‌ Opportunities for Students Act, also known as the HEROES Act. This statute allows the⁢ government to grant relief for student debts in ‌response to a national emergency.

It is important to ⁣stay informed​ about these developments in ⁢student debt relief. You can receive breaking ⁤news blasts directly ⁤to your inbox for⁢ free ⁣by subscribing at https://www.oann.com/alerts.


Read More From Original Article Here: Biden Admin Updates Its Student Debt Forgiveness Plan

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