Student loan Forgiveness Latest News: Last Monday, 150,000 borrowers had their student loans canceled by the Department of Education. Public service employees, those with permanent disabilities, and those who attended schools that defrauded students are the targets of the cancellations. President Joe Biden confirmed that his administration has canceled 5 million with just a few weeks remaining in his term.
By the way, the Biden administration has promised to forgive $183.6 billion in student loans through 28 plans, the most recent of which is $4.2 billion. Given that this was a 2020 campaign pledge, they have encountered legal resistance from Republicans and the courts. More than 5 million Americans have had their student loans forgiven by his administration, according to Biden.
Students from deceptive schools
The U.S. Department of Education’s Borrower Defense Loan Discharge program will forgive nearly 85,000 federal student loans. If a person’s school closed while they were enrolled, or if they were misled by their school or did not receive a high-quality education, they might be eligible for the option.
According to a statement issued by Biden, the 150,000 borrowers for whom student loan relief was approved included 6,100 public service employees, 61,000 borrowers with permanent disabilities, and nearly 85,000 borrowers who attended schools that “cheated and defrauded their students.”
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Disability-related borrowers
- The Education Department announced Monday that it will erase $2.5 billion in debt for an additional 61,000 federal student loan borrowers who have a “total and permanent” disability.
- Some borrowers are automatically eligible for debt forgiveness as part of this round of relief thanks to data matches with the Department of Veteran Affairs and the U.S. Social Security Administration. The loan discharge was applied for by other borrowers.
- If a borrower has a severe and permanent physical or mental disability that keeps them from working, they may be eligible for a Total and Permanent Disability, or TPD, Discharge. A physician, the Social Security Administration, or the Department of Veterans Affairs may provide documentation of the disability.
When Donald Trump arrives, what will happen to this program?
When Donald Trump takes the throne, this torrent of cancellations might slow down, so it’s the big question. Although Trump hasn’t stated his exact views on student loans, he has stated in the past that debt forgiveness is illegal and garbage. Republicans have blasted Biden’s plans, claiming that the people who pay taxes but never attended college or paid off their debts are ultimately responsible for the costs.
During his first term, Trump sought to abolish PSLF, but Congress rejected his proposal. According to the Heritage Foundation’s Project 2025, if Trump is re-elected, PSLF will be terminated, debtors will face harsher penalties, and payment plans will no longer be as attractive as they are.
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In this instance, the president-elect will have the backing of the Republicans for the remainder of 2025.President Biden pledged to repair a flawed student loan system 4 years ago. More than five million borrowers can now receive life-changing student debt relief more than any previous administration in history, according to U.S. Secretary of Education Miguel Cardona.
