“We’re going to continue the conversations about forgiveness of loans” – NBC 5 Dallas-Fort Worth

0


Since taking office, the Biden administration has approved more than $ 9.5 billion in student loan relief, mostly for borrowers with a total and permanent disability. The amount returned, however, remains a small percentage of the excess $ 1.7 trillion value of student loans that Americans collectively still owe.

In a Wednesday town hallEducation Secretary Miguel Cardona spoke to CNBC’s Sharon Epperson about the Education Department’s plans to address a range of issues, including the student loan crisis.

“Forgiveness of civil service loans will be one of the main strategies we adopt, especially when educators who have served for years are routinely denied,” Cardona said. “We need to revamp this system and make it more user-friendly. We need to keep the borrower at the center, especially for people who choose the public service.”

On October 6, the Ministry announced a series of changes to the Public service loan forgiveness program to address the history of the rejection program of about 99% of borrowers who request a rebate.

Asked about the general student loan exemption, Cardona said the topic was still under discussion.

“We’re going to continue the conversations about loan forgiveness – a large loan forgiveness,” he said. “But we also have a Build Back Better program that provides community college for all. If passed, and I really hope we can correct some of the issues that have happened in the past, so that we don’t have to. no people swimming in debt and we can stop the bleeding. ”

Epperson followed up on the blanket cancellation of student loans issue.

“Our conversations are ongoing with the Justice Department and the White House on these issues. We also want to make sure that we are not only providing broad support to borrowers, but also that we stop the bleeding,” Cardona replied, pointing to changes to the PSLF program. “We’ve provided over $ 9.5 billion in loan relief since March. $ 9.5 billion in about seven months is pretty significant.”

The statement comes after months of debate over student debt relief and its implementation.

During the election campaign, President Joe Biden expressed his support for some form of student loan forgiveness for undergraduate borrowers. Since, lodge and Senate Democrats have repeatedly urged Biden to “broadly” write off up to $ 50,000 in federal debt by decree during his first 100 days in office.

During his tenure, Biden has repeatedly postponed against leaders of his own party, saying he will only support up to $ 10,000 in debt relief and would prefer Congress to draft the legislation.

“I am ready to deduct $ 10,000 [of] debt, but not $ 50,000, ”Biden told a member of the public during February 2021 town hall. “I don’t think I have the authority.”

Biden then asked the Education and Justice Departments to draft a memo on using executive power to cancel student loans, apparently putting the future of student loan cancellation in the hands of people named as Cardona.

Some, like higher education expert Mark Kantrowitz, I think the note won’t allow Biden to use an executive order to write off student loan debt.

“It is only after receiving this report, which I think he will find out does not have legal authority, that the ball will be in Congress’ court,” Kantrowitz told CNBC Make It in May.

Corn other experts disagree.

“President Biden absolutely has the power to cancel student debt,” said Ashley Harrington, federal director of advocacy and senior counsel at the Center for Responsible Lending. “This is the same authority that was used by the Trump administration last year to waive interest and suspend payments or for federal borrowers who had loans held by the federal government. This same authority was used more late in the year to extend this break. “

And with Congress now struggling to pass a lawKevin Walker, editor at CollegeFinance, says using executive power is the most likely way to get past student loan cancellation.

“A lot of the things the administration is trying to push through Congress that are costly and controversial are already facing a lot of headwinds,” he said. “However, I think there is a chance that the Department of Education will decide that the President or Secretary of Education has the power to administratively cancel loans because, in fact, they already do.”

Walker continues, “I think there is a better chance that they will find that the secretary or the president has that authority and I think the reason is that there is a precedent for forgiveness that has already been accomplished administratively. “

Don’t miss:


Leave A Reply

Your email address will not be published.