April 12, 2024
Loans

Biden admin. makes surprise move to fast-track student loan forgiveness


[LAUREN TAYLOR]

43-POINT-6 MILLION AMERICANS HAVE FEDERAL STUDENT LOAN DEBT.

COLLECTIVELY AMERICANS OWE 1-POINT-7 TRILLION DOLLARS. 

HOPE FOR RELIEF HAS BEEN A ROLLERCOASTER THROUGHOUT PRESIDENT BIDEN’S TERM.

WHILE BIDEN HAS WIPED DEBT FOR 3.6 MILLION AMERICANS – THE SUPREME COURT BLOCKED HIS ADMINISTRATION FROM CANCELING STUDENT LOANS FOR ABOUT 40 MILLION MORE PEOPLE LAST YEAR.

THAT ROLLERCOASTER REACHED ANOTHER SUDDEN PEAK AS THE DEPARTMENT OF EDUCATION ISSUED A SURPRISE ANNOUNCEMENT THURSDAY THAT AMERICANS WITH SMALLER FEDERAL STUDENT LOANS WILL GET RELIEF IN FEBRUARY, MOVING UP THE TIMELINE FROM JULY.

ACCORDING TO THE BIDEN ADMINISTRATION, NEXT MONTH, ANYONE WHO ORIGINALLY TOOK OUT 12-THOUSAND DOLLARS OR LESS IN FEDERAL STUDENT LOANS AND  HAS BEEN IN RE-PAYMENT FOR 10 YEARS WILL HAVE THEIR DEBT CANCELED IMMEDIATELY.

THERE IS A CATCH – TO QUALIFY FOR THE RELIEF, DEBTORS MUST ENROLL IN BIDEN’S SAVE RE-PAYMENT PLAN, WHICH LINKS INCOME AND PAYMENTS.

ACCORDING TO BIDEN, THANKS TO THE SAVE PLAN  MORE THAN 3-MILLION AMERICANS HAVE ZERO-DOLLAR MONTHLY PAYMENTS WITHOUT INTEREST PILING UP.

TELLING AMERICANS THAT LOAN FORGIVENESS IS A PRIORITY, BIDEN SAID FRIDAY –

“I WON’T BACK DOWN FROM USING EVERY TOOL AT OUR DISPOSAL TO GET STUDENT LOAN BORROWERS THE RELIEF THEY NEED TO REACH THEIR DREAMS.”

IT IS STILL UNCLEAR HOW MANY PEOPLE WILL BENEFIT FROM THIS ROUND OF RELIEF, BUT THE EDUCATION DEPARTMENT TOLD REPORTERS THAT IT WILL HELP LOW INCOME STUDENT LOAN BORROWERS – ADDING THAT MORE THAN 3 IN 5 AMERICANS WITH DEFAULTED LOANS, ORIGINALLY BORROWED LESS THAN 12-THOUSAND DOLLARS.

 



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