Wednesday, October 19, 2022

Delays, Lawsuits, and Fiscal Concerns Hobble Biden's Student Loan Relief Plan; Yet Biden Administration Rolls Out Student Loan Forgiveness Application Beta Website

Delays, lawsuits, and fiscal concerns hobble Biden's student loan relief plan:
Millions of student loan borrowers are looking on nervously as President Joe Biden's $500 billion debt transfer takes on delays and a steady stream of lawsuits.
The move was widely seen as a way to energize young voters and was announced less than three months before the midterm elections, but now faces the prospect of becoming another court loss for the Biden administration.
Biden announced the debt forgiveness program on Aug. 24. It transfers up to $10,000 in student loans for those who make less than $125,000 a year or households making less than $250,000. Pell Grant recipients will be eligible for up to $20,000 in forgiveness. Administration officials say the money will go out the door before January, when the nearly three-year-old repayment pause lifts, but no one has been able to apply yet.
"This week, we're giving everyone a preview of what the [application] form would look like," White House press secretary Karine Jean-Pierre said Tuesday. "And we know that a lot of you were curious about what it would look like, so we did that. So we're trying to be transparent. We're trying to lay out how this process is going to work."
The original timeline included applications launching in early October. The Department of Education teased an application form this week, but officials dropped the "early" part, saying the form would launch this month and, once available, could be completed in less than five minutes.
In the meantime, at least a half-dozen lawsuits have emerged challenging the program's legality. Those filing suit argue that only Congress has the power to set monetary policy, that the pandemic no longer qualifies as a national emergency giving the president expanded powers, and that the program also violates the Administrative Procedure Act, which lays out the method federal agencies should follow to ensure the executive branch’s policies are well reasoned and explained. --->READ MORE HERE
Biden administration rolls out student loan forgiveness application beta website:
The Biden administration has launched a beta test of its website for people to apply for student loan debt relief.
The website went live on Friday, and it allows borrowers to submit an application requesting loan debt forgiveness. Applications filed with the beta version won’t be processed until the website officially launches in the coming weeks, although borrowers won’t have to submit another application if they decide to file early with the beta version.
“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,” a banner at the top of the beta site reads.
Under the plan that President Joe Biden announced in August, borrowers who earn under $125,000 individually or $250,000 as a household would have $10,000 in debt relieved, and those who received a Pell Grant can have up to $20,000 canceled. --->READ MORE HERE

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