President Biden unveiled a New Student Loan Forgiveness Program this week. The New Plan Prioritizes Borrowers who are experiencing Financial Hardship.
Biden's New Plan would give Forgiveness Priority to:
- Borrowers who have outstanding Federal Student Loan balances exceeding what they originally Borrowed.
- Those with Student Loans that entered Repayment 25 or more years ago.
- Borrowers who took on Debt to attend Career-Training Programs, that created unreasonable Debt loads or provided Insufficient Earnings, as well as those who attended Institutions with "unacceptably high" Student Loan Default Rates.
- Borrowers deemed Eligible for Forgiveness, through Income driven Repayment, or other Targeted Relief Programs who have Not Applied for the Relief.
Education Secretary Miguel Cardona said in a release about the Proposal: "These draft proposals would build on the historic $127 billion in loan forgiveness the Biden-Harris Administration has already approved for nearly 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."
This New Plan builds on the work the Biden White House has already done, to Improve the Student Loan Program and make Higher Education more Affordable. This Approving $127 billion in Relief for nearly 3.6 million Borrowers, including:
- Nearly $42 billion for almost 855,000 Borrowers who are Eligible for Forgiveness through Income-driven Repayment by fixing Historical Inaccuracies in the Count of Payments that Qualify toward Forgiveness.
- Almost $51 billion for 715,000 Public Servants through Public Service Loan Forgiveness (PSLF) Programs, including the Limited PSLF Waiver and Temporary Expanded PSLF (TEPSLF).
- $11.7 billion for almost 513,000 Borrowers with a Total and Permanent Disability.
- $22.5 billion for more than 1.3 million Borrowers who were Cheated by their Schools, saw their Institutions precipitously Close, or are covered by related Court Settlements.
Six Republican led States Sued the Biden Administration, to Stop the original Loan Forgiveness Program, and were successful atKkilling the Plan at the Supreme Court, which Ruled Biden had Overstepped His Authority by invoking the Heroes Act, a Law that allows Student Debt Relief in the face of War or National Emergency.
This more Targeted Plan fits better into the Authority of the Department of Education, to provide Relief only to Borrowers with demonstrated Need.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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