How Does the White House Defense Its Student Loan Relief Program

How does the white House Defense It Student Loan relief program – it should be remembered that President Biden, during his campaign, had promised to provide student debt relief.

How Does The White House Defense Its Student Loan Debt Relief
How Does The White House Defense Its Student Loan Debt Relief

Today, the Biden Administration is following through on that promise and providing families relief as they prepare to start re-paying loans after the economic crisis due to the pandemic.

How Does The White House Defense Its Student Loan Debt Relief

Biden believes that post-high school education should be a ticket to a middle-class life, but for too many, the cost of borrowing for college is a lifelong burden that deprives them of that opportunity.

According to the record  Since 1980, the total cost of both four-year public and four-year private colleges has nearly tripled, even after accounting for inflation. Federal support has not kept up – Pell Grants once covered nearly 80 per cent of the cost of a four-year public college degree for students from working families, but now only cover a third  this has left many students from low- and middle-income families with no choice but to borrow if they want to get a degree. According to a Department of Education analysis, the typical undergraduate student with loans now graduates with nearly $25,000 in debt.

The Biden administration asked the Supreme Court to uphold its decision to forgive hundreds of billions of dollars of student loan debt for tens of millions of Americans. On this basis, it was acting within its executive authority and did not need new congressional authorization.

In a brief filed with the justices, the Justice Department rejected legal challenges mounted by a half-dozen Republican-led states and maintained that the states did not have a basis for contesting the decision in court in the first place.

The administration responded to the challenges a month after the court agreed to hear the matter and put the case on an expedited timetable. The justices plan to hear arguments in February and left in place an injunction issued by a lower court blocking the administration from proceeding with the program until the legal questions have been resolved.

Student Loan Forgiveness Update

The program would forgive as much as $20,000 in debt for as many as 40 million borrowers making under $125,000 a year. More than 16 million potential beneficiaries have already been approved for relief if the court allows the program to proceed, and millions more have applied. The administration said nearly 90 per cent of the benefits would go to borrowers who had already finished school and were making less than $75,000 a year.

President Biden’s decision to offer the forgiveness represented one of the most sweeping spending decisions ever initiated by a president without a specific congressional vote. The nonpartisan Congressional Budget Office has estimated its cost at $400 billion over 30 years, with the bulk of the effects on the economy over the next decade

The states challenging the decision — Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina — maintain that the administration did not have the power to authorize such an expansive move on its own and argue that it would deprive the states of future tax revenue.

“The administration is once again invoking the Covid-19 pandemic to assert power far beyond anything Congress could have conceived,” the states said in a brief filed with the Supreme Court in November, noting that the justices had previously ruled against two other Covid-related measures. “Now,” they added, “while President Biden publicly declares the pandemic over, the secretary and Department of Education are using Covid-19 to justify the mass debt cancellation.”

Most borrowers have already been able to skip student loan payments for nearly three years under a Covid-19 relief measure initiated under President Donald J. Trump in March 2020 and continued under Mr Biden. Mr Biden’s administration has extended the suspension of payments until as late as September.

The Biden team’s legal brief filed that the pandemic also provided the grounds for the debt cancellation program, arguing that the administration had the authority under the Heroes Act of 2003, which allows the secretary of education to grant relief during times of war or national emergency.

“The secretary’s actions fall comfortably within the plain text of the act,” the brief said, referring to Education Secretary Miguel A. Cardona.

The brief also challenged the states’ right to sue over the program. The U.S. Court of Appeals for the Eighth Circuit, which imposed the injunction temporarily halting the forgiveness pending legal resolution, focused on the possibility of harm to the Missouri Higher Education Loan Authority, a nonprofit entity that services federal loans.

But the administration brief argued that the authority is separate from the State of Missouri and that any harm is highly speculative. The brief also said two borrowers who sued in Texas, represented by a special interest group, did not have standing to challenge the program.


The student loan plan may have played a role in bolstering Democrats in November’s midterm elections. While voters split relatively evenly on the matter, with 50 per cent supporting it and 47 per cent opposing it, according to CNN exit polls, the program had far higher support among younger voters, who broke decisively for Democrats.


Student Loan Forgiveness 2022 Who Qualifies?

To qualify for student loan forgiveness, your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households). If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt relief.

How do you know if your Student Loans are Forgiven?

How will I know when my loans are forgiven? The Department of Education will notify you when your application is approved, and your loan servicer will update you immediately after your loans are forgiven. Always check your mail for any correspondence from your servicer via email or mail, and regularly check your loan balance online.



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