The Dept Ed was overcharging. this is them fixing a fuck up
By Giulia Carbonaro On 6/2/23 at 8:00 AM EDT
The resolution, and especially the addition of extra interest on student loans, have sparked anger among students' advocates, with the nonprofit Student Debt Crisis Center (SDCC) urging Biden to veto the "shameful resolution passed by the Senate that would unravel student debt relief."
"Today's Senate vote retroactively terminates the pause on federal student loan payments and interest accrual, obstructs @POTUS's debt-relief plan and even claws back Public Service Loan Forgiveness relief that has already been granted to teachers, veterans, and frontline heroes," the group wrote on Twitter.
"It is shameful that legislators would endorse measures that harm the very heroes in our communities—veterans and nurses—who are still grappling with the aftermath of the pandemic and its profound economic impact," SDCC president and founder Natalia Abrams said.
"The cold hard reality is that if Republicans were to get their way and pass this bill into law, people across the country would have relief they are counting on snatched away from them, plans they have made upended, less money in their pockets, and monthly payments not just abruptly restarted—but maybe even abruptly jacked up by hundreds of dollars," said Sen. Patty Murray (D-WA).
While Democrats and supporters of Biden's plans say that the program is necessary to help thousands of families, Republicans have argued that it adds an unjustified burden on taxpayers and is unfair to those who have already paid off their student debt or did not go to college.
Payments on federal student loans, which were paused during the pandemic and then during the cost-of-living crisis which hit most of the world last year, will resume on August 30 if the debt-ceiling deal negotiated between Biden and House Speaker Kevin McCarthy is signed into law.
Biden's plan to cancel student loan debt for 43 million Americans would still be in place, and the president has said he will veto the measure passed by the Senate on Thursday.
But the final say on the program belongs to the Supreme Court, which is expected to rule on two conservative challenges to Biden's plan in the coming weeks and decide whether the plan can take effect.
No debt has been canceled yet, as the plan has been held up for months in a legal battle that would be unlocked by the Supreme Court's decision this month.
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Presidential power to cancel student debt
an email I received about my student loans
Finance Minister Chrystia Freeland has announced plans to erase the interest on federal student and apprentice loans as part of the government’s fall fiscal update.
The move, made amid soaring living costs and the threat of a looming recession, would bring relief to many budget-strapped young Canadians who’ve been borrowing to finance their education. The measure, if implemented, would kick in on April 1, the day after a temporary freeze on the accrual of interest on federal student loans is set to expire.
It would make the loans interest free at that point and apply to those currently being repaid as well.
By Stacy Cowley
Oct. 15, 2022Updated 2:04 a.m. ET
Late Friday night for the first time, some borrowers were able to apply for up to $20,000 in student loan cancellation that President Biden had promised in August.
The Education Department, which directly holds $1.6 trillion in federal student loan debt owed by 45 million borrowers, said it had begun “beta testing the student debt relief website” on Friday. The agency said it hoped the test would help it find any problems before the site publicly opened. That is expected to happen shortly.
“Borrowers will not need to reapply if they submit their application during the beta test, but no applications will be processed until the site officially launches later this month,” a department spokeswoman said.
Some immediately pounced on the suddenly active site.
“Application for student debt relief is now live!!” Representative Ilhan Omar, a Democrat of Minnesota, tweeted.
On Twitter, some people reported successfully submitting applications. Others were met with the news that their application was in a queue with the message: “We’re accepting applications to help us refine our processes ahead of the official form launch. If you submit an application, it will be processed, and you won’t need to resubmit.”
Mr. Biden’s plan to eliminate up to $20,000 per borrower in federal student loan debt — an executive action estimated to cost $400 billion or more — has been challenged in court, intensifying the pressure on the administration to discharge debt quickly. A federal judge in Missouri heard oral arguments this week on a lawsuit from a group of Republican state attorneys general seeking an injunction to prevent the debt cancellation from being implemented.
The Education Department said in court filings that Oct. 23 would be the soonest it anticipated canceling student debt.