OCTOBER 10, 2023:
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AUGUST 7, 2023:
UNDATED (AP)- Two conservative groups are asking a federal court to block the Biden administration’s plan to cancel $39 billion in student loans for more than 800,000 borrowers. In a lawsuit filed Friday (Aug. 4, 2023) in Michigan, the groups argue that the administration overstepped its power when it announced the forgiveness in July. It asks a judge to rule the cancellation illegal. The suit was filed by the New Civil Liberties Alliance on behalf of the Mackinac Center for Public Policy and the Cato Institute. The Education Department called the suit “a desperate attempt from right wing special interests to keep hundreds of thousands of borrowers in debt.”
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JUNE 30, 2023:
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JUNE 14, 2023:
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MAY 12, 2023:
UNDATED (AP)- The U.S. has approved more than $42 billion in federal student loan debt forgiveness for more than 615,000 borrowers over the past 18 months. It’s part of a program aimed at getting more people to work in public service jobs. The Public Service Loan Forgiveness program is open to teachers, librarians, nurses, public interest lawyers, military members and other public workers. It cancels a borrower’s remaining student debt after 10 years of public interest work, or 120 monthly payments. Stringent rules meant that many applicants were rejected, but a recent waiver made it easier for people to apply and get their debt forgiven.
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JANUARY 10, 2023:
WASHINGTON (AP) — The White House is moving forward with a proposal that would lower student debt payments for millions of Americans now and in the future. It’s offering a new route to repay federal loans under far more generous terms. President Joe Biden announced the plan in August2022, but it was overshadowed by his sweeping plan to slash or eliminate student debt for 40 million Americans. Education Department officials on Tuesday (Jan. 10, 2023) called the new plan a “student loan safety net” that’ll prevent borrowers from getting overloaded with debt. The Democratic president is moving forward with the repayment plan even as his one-time debt cancellation faces an uncertain fate before the Supreme Court.
DECEMBER 1, 2022:
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NOVEMBER 11, 2022:
UNDATED (AP)- A U.S. judge in Texas has blocked President Joe Biden’s plan to provide millions of borrowers with up to $20,000 apiece in federal student-loan forgiveness. The program was already on hold while a federal appeals court in St. Louis considers a separate lawsuit by a half-dozen states challenging it. District Court Judge Mark Pittman said Thursday (Nov. 10, 2022) that the program usurped Congress’ power to make laws. Pittman is an appointee of former President Donald Trump based in Fort Worth. The debt forgiveness plan would cancel $10,000 in student loan debt for those making less than $125,000 or households with less than $250,000 in income. Pell Grant recipients would get an additional $10,000 in debt forgiven.
OCTOBER 31, 2022:
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OCTOBER 18, 2022:
NEW YORK (AP) — President Joe Biden’s student loan forgiveness plan, announced in August, will cancel up to $20,000 in debt per borrower. The application process is now open, and the administration says the forms should take five minutes to complete. Borrowers who apply before mid-November should see forgiveness before Jan. 1, 2023, when payments on loans are scheduled to restart after a pause during the pandemic. Some Republican-led states have filed lawsuits to try to stop the cancellation, but the Biden administration says they’re confident the challenges won’t succeed.
OCTOBER 17, 2022:
WASHINGTON (AP) — The U.S. Education Department has begun accepting applications for President Joe Biden’s student debt cancellation — a plan that makes 43 million Americans eligible for at least some debt forgiveness.
Borrowers were notified late Friday (Oct. 14, 2022) that an early, “beta launch” version of a new online form was made available as the department looks to find and fix any glitches. Applications submitted during the pilot period will be processed after the form is officially made public, the agency said.
“This testing period will allow the department to monitor site performance through real-world use, test the site ahead of the official application launch, refine processes, and uncover any possible bugs prior to official launch,” the department said in a statement.
The test form will be available “on and off” during the initial rollout, the department said on its website. The official form is expected to be made public later this month, and administration officials have been preparing for heavy web traffic.
Biden’s plan calls for $10,000 in federal student debt cancellation for those with incomes below $125,000 a year, or households that make less than $250,000 a year. Those who received federal Pell Grants to attend college are eligible for an additional $10,000.
The plan makes 20 million eligible to get their federal student debt erased entirely.
The department did not immediately say Monday how many applications it had fielded through the beta launch. Thousands took to social media to share the form, with many saying they submitted their applications with little trouble.
The Biden administration has touted it as a “simple, straightforward” application. It asks for the borrower’s name, Social Security number, contact information and date of birth. It does not require income information but asks users to check a box attesting that they are eligible under the program’s income limits.
That information will be checked against Education Department records to help identify applicants who are likely to exceed the income limits, the administration says. Those people will be asked for more information to prove their incomes.
An estimated 1 million to 5 million people will be required to provide that extra documentation, the Education Department said in a recent submission to the White House’s Office of Management and Budget.
Creating and processing the form is estimated to cost nearly $100 million, a figure that angered advocates who view the application as an unnecessary barrier. The form is meant to help exclude the roughly 5% of borrowers who exceed the income limits, but advocates say it could also deter some lower-income Americans who need the relief.
Once the Education Department begins processing applications, borrowers should expect to see their debt forgiven in four to six weeks, officials say. Most applications submitted by mid-November will be processed by Jan. 1 — the day federal student loan payments are set to resume after being paused during the pandemic.
Borrowers will be able to submit applications through the end of 2023.
The Biden administration is pushing ahead with the debt cancellation even as it fights a growing number of legal challenges. Six Republican-led states are suing to block the plan, saying it oversteps Biden’s authority and will lead to financial losses for student loan servicers, which are hired to manage federal student loans and earn revenue on the interest.
A federal judge in St. Louis is now weighing the states’ request for an injunction to halt the plan. In court documents, the Education Department has vowed not to finalize any of the debt cancellation before Oct. 23.
Biden promised to pursue widespread student debt forgiveness as a presidential candidate, but the issue went through more than a year of internal deliberation amid questions about its legality. His plan sparked intense debate ahead of the midterm elections, with Republicans and some Democrats saying it’s an unfair handout for college graduates.
OCTOBER 10, 2022:
WASHINGTON (AP) — A small business advocacy group has filed a new lawsuit seeking to block the Biden administration’s efforts to forgive student loan debt for tens of millions of Americans. The suit, filed Monday (Oct. 10, 2022) by the Job Creators Network Foundation, argues the Biden administration violated federal procedures by failing to seek public input on the program. It also argues the program is arbitrary, benefiting some borrowers, but not others. It’s one of a handful of lawsuits filed by conservative business groups, attorneys, and Republican lawmakers in recent weeks as the Biden administration tries to push forward with its plan to cancel billions in debt before November’s midterm elections.
SEPTEMBER 27, 2022:
UNDATED (AP)- A libertarian group in California filed a legal challenge to President Joe Biden’s plan for student debt cancellation on Tuesday (Sept. 27, 2022), calling it an illegal overreach that would increase state tax burdens for some Americans who get their debt forgiven. The lawsuit was filed by the Pacific Legal Foundation and is believed to be the first targeting Biden’s plan. It was filed in federal court in Indiana, one of several states that plan to tax any student debt canceled by Biden’s plan. It argues that some borrowers will automatically get tax relief but then face a state tax increase. Some other federal programs offer to forgive their debt without any tax.
AUGUST 25, 2022:
WASHINGTON (AP) — More than 40 million Americans could see their student loan debt reduced — and in many cases eliminated — under President Joe Biden’s long-awaited forgiveness plan. Biden’s announcement Wednesday (Aug. 24, 2022) was a historic but politically divisive move in the run-up to the midterm elections. Fulfilling a campaign promise, Biden is moving to erase $10,000 in federal student loan debt for those with incomes below $125,000 a year, or households that earn less than $250,000. He’s canceling an additional $10,000 for those who received federal Pell Grants to attend college. It’s seen as an unprecedented attempt to stem the tide of America’s rapidly rising student debt. But it also faces nearly certain legal challenges.
AUGUST 24, 2022, UPDATE:
WASHINGTON (AP) — President Joe Biden has announced his long-awaited plan to deliver on his campaign promise to provide $10,000 in student debt cancellation for millions of Americans — and up to $10,000 more for those with the greatest financial need. Biden announced in a Wednesday (Aug. 24, 2022) tweet that borrowers who earn less than $125,000 a year, or families earning less than $250,000, would be eligible for the $10,000 loan forgiveness. For recipients of Pell Grants, which are reserved for undergraduates with the most significant financial need, the federal government would cancel up to an additional $10,000 in federal loan debt. Biden is also extending a pause on federal student loan payments through the end of 2022.
AUGUST 24, 2022:
WASHINGTON (AP) — Millions of Americans are waiting to learn the fate of their federal student debt as President Joe Biden prepares to deliver on his campaign promise to provide up to $10,000 in debt cancellation. Details of the plan have been kept closely guarded. But borrowers who earn less than $125,000 a year would be eligible for the loan forgiveness. That’s according to three people familiar with the decision, expected to be announced Wednesday (Aug. 24, 2022). Biden is also set to extend a pause on federal student loan payments through January 2024. Legal challenges are almost certain to come.
APRIL 5, 2022:
WASHINGTON (AP) — The Biden administration plans to freeze federal student loan payments through Aug. 31, 2022, extending a moratorium that has allowed millions of Americans to postpone payments during the coronavirus pandemic. The decision was confirmed by an administration official familiar with the White House’s decision-making. Student loan payments were scheduled to resume May 1, 2022, after being halted since early in the pandemic. But following calls from Democrats in Congress, the White House plans to give borrowers additional time to prepare for payments. The decision was first reported by Bloomberg. The action applies to more than 43 million Americans who owe a combined $1.6 trillion in student debt held by the federal government.
MARCH 1, 2023:
WASHINGTON (AP) — Arguments at the Supreme Court over President Joe Biden’s student debt cancellation left some borrowers feeling isolated as they heard such a personal subject reduced to cold legal language. Borrower Niara Thompson had a seat in the audience and was surprised to hear lengthy discussion about the definition of words like “waive” and “modify.” Debt is a deeply personal issue for Thompson, who will graduate from the University of Georgia with about $50,000 in student debt. It’s not unusual for Supreme Court cases to hang on legal technicalities, but some borrowers say they feel like the arguments miss the bigger picture around college affordability.
FEBRUARY 28, 2023, UPDATE:
WASHINGTON (AP) — Conservative justices holding the Supreme Court’s majority seem likely to sink President Joe Biden’s plan to wipe away or reduce student loans held by millions of Americans. Chief Justice John Roberts led his conservative colleagues Tuesday (Feb. 28, 2023) in questioning the administration’s authority to broadly cancel federal student loans because of the COVID-19 emergency. The plan has so far been blocked by Republican-appointed judges on lower courts. The Biden administration says 26 million people have applied and 16 million have been approved to have up to $20,000 in federal student loans forgiven. The program is estimated to cost $400 billion over 30 years.
FEBRUARY 28, 2023, UPDATE:
WASHINGTON (AP) — The Supreme Court is taking up a partisan legal fight over President Joe Biden’s plan to wipe away or reduce student loans held by millions of Americans. The high court, with its 6-3 conservative majority, began haring arguments on Tuesday (Feb. 28, 2023) in two challenges to the plan. So far, Republican-appointed judges on lower courts have blocked the plan. Arguments are scheduled to last two hours, but likely will go much longer. The Biden administration says 26 million people have applied and 16 million have been approved to have up to $20,000 in federal student loans forgiven. The program is estimated to cost $400 billion over 30 years.
FEBRUARY 28, 2023:
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