In August, President Joe Biden announced the cancellation of up to $10,000 in student loan debt for eligible borrowers making less than $125,000 a year or up to $20,000. Bell Grand those who received
An Education Department email to Americans who signed up for updates, obtained Thursday by CNN, provided few details about who is eligible and what to expect in the process.
“In October, the U.S. Department of Education will introduce a short online application for student loan relief. You do not need to upload any supporting documents or use your FSA ID to submit your application,” the email states.
It continued, “Once you submit your application, we will review it, determine your eligibility for debt relief and work with your loan servicer(s) to process your relief. We will contact you if we require any additional information from you.
The email said additional updates would be sent “in the coming days,” but did not provide a specific date for when the application window would open in October. It will be extended till December 2023. It also warned readers to “beware of scams”.
“A company may contact you and say they can help you get loan forgiveness, forgiveness, cancellation, or debt relief for a fee. You should never have to pay back your federal student aid. Make sure you only work with the U.S. Department of Education and our loan servicers, and that your personal Do not disclose information or account password to anyone,” it said.
The Education Department is working through the implementation process “closely” with the White House, a department spokeswoman said, and is meeting daily.
“Our goal is to provide borrowers with a seamless and simple experience, working closely with the servicers who actually process the relief,” a CNN spokesperson said.
Biden’s student loan move opened new divisions within and outside his party. While some supporters applaud the decision, progressives say it doesn’t go far enough, some Democratic economists warn it could worsen inflation, but other economists say it will have a synergistic effect. At least in economics Republicans say it’s unfair and expensive. The nonpartisan Congressional Budget Office said in a report Monday that the repeal could come at a price $400 billionBut he noted that those estimates are still “highly uncertain.”
The White House argues that the spending should be viewed over a 30-year period.
In one of the first significant legal challenges to the loan forgiveness program, A public interest lawyer filed the lawsuit Tuesday Arguing that the policy is an abuse of executive power. Plaintiff Frank Garrison says he will be forced to pay state taxes on the canceled amount because of the upcoming student loan forgiveness — something he otherwise would have avoided.
The lawsuit, which names the Department of Education as a defendant, challenges the agency’s “unacceptable abuse of executive power to restore the rule of law and enforce the Constitution’s separation of powers,” according to a press release from the Pacific Legal Foundation.
“The claim is baseless for one simple reason: No one is forced to seek debt relief. Anyone who does not want debt relief can choose to opt out,” White House spokesman Abdullah Hassan said in an emailed statement.
This story has been updated with additional information.
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