(FamilyConservationPAC.com) – The U.S. Department of Education said it would “begin notifying more than 804,000 borrowers that their combined federal student loan balances of $39 billion will be automatically discharged in the coming weeks,” according to a statement released on Friday.
The U.S. Secretary of Education, Miguel Cardona, said, “for far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness.”
BREAKING NEWS: Biden administration forgives $39 billion in student loan debt to more than 800,000 borrowershttps://t.co/ooBBcsnMJX
— Fox News (@FoxNews) July 14, 2023
The Biden-Harris administration announced today that additional 804,000 borrowers will receive $39 billion in debt relief as part of another historic move to remedy these wrongs.
“As we have done for public workers, students who were defrauded by their universities, and borrowers with permanent impairments, including veterans, we are making sure that everyone receives the forgiveness they deserve by correcting prior administrative errors,” Cardona continued.
“The struggle to even the playing field in higher education will continue under this administration,” he add.
The Biden-Harris Administration’s modifications to guarantee that all borrowers receive an accurate tally of the number of monthly payments that qualify for forgiveness under income-driven repayment (IDR) plans led to the upcoming discharges, according to the Department of Education.
“These fixes are part of the Department’s commitment to address historical failures in the administration of the Federal Student Loan Program in which qualifying payments made under IDR plans that should have moved borrowers closer to forgiveness were not accounted for,” the statement stated.
If a borrower has accrued the equivalent of 20 or 25 years’ worth of qualifying months, they are eligible for forgiveness.
According to the repayment plan and type of loan, the Department will continue to identify and notify borrowers who reach the relevant forgiveness thresholds (240 or 300 qualifying monthly payments) every two months until next year, when all borrowers who are not yet eligible for forgiveness will have their payment counts updated.
The announcement comes two weeks after the Supreme Court declared that the Biden administration’s student loan debt giveaway program was ineligible for implementation.
By a vote of 6-3, the court determined that the cancellation of more than $430 billion in student loan debt is not permitted by federal law.
Chief Justice John Roberts wrote for the majority that “the Secretary’s plan canceled roughly $430 billion of federal student loan balances, completely wiping out the debts of 20 million borrowers and lowering the median amount owed by the other 23 million borrowers from $29,400 to $13,600.”
After reaching the decision, Biden said, “I will stop at nothing to find other ways to deliver relief to hard-working middle-class families.”
The federal government would provide up to $10,000 in debt relief — and up to $20,000 for Pell Grant recipients — for Americans who make less than $125,000 annually under Biden’s student loan proposal, which had been put on hold due to litigation.
The government was anticipating spending more than $400 billion on the program – really they mean you, the tax payer.
— PragerU (@prageru) June 30, 2023
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