{"id":2001296,"date":"2023-08-15T13:26:01","date_gmt":"2023-08-15T17:26:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-announces-39-billion-student-loans-will-be-automatically-discharged-soon\/"},"modified":"2023-08-15T13:28:22","modified_gmt":"2023-08-15T17:28:22","slug":"biden-announces-39-billion-student-loans-will-be-automatically-discharged-soon","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-announces-39-billion-student-loans-will-be-automatically-discharged-soon\/","title":{"rendered":"Biden: $39B Student Loans to Be Automatically Discharged Soon"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbiden-announces-39-billion-student-loans-will-be-automatically-discharged-soon%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2001296&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<p>The Department of \u2062Education made an \u200bexciting announcement on Monday. Over \u2063804,000 borrowers will soon receive automatic discharge of \u2063their $39 billion\u2062 in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-has-signed-40-executive-orders-and-actions-since-taking-office\/\" title=\"Biden has signed 40 executive orders and actions since taking office\">federal student loans<\/a>.\u200d This news comes as a result of fixes implemented by \u2064the \u200cBiden-Harris\u200c Administration to ensure accurate counting of qualifying monthly payments for forgiveness under <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-admin-to-allow-40k-borrowers-to-have-student-loans-eligible-for-public-service-loan-forgiveness-program\/\" title=\"Biden Admin to Allow 40k Borrowers to Have Student Loans Eligible for Public Service Loan Forgiveness Program\">income-driven repayment plans<\/a>.<\/p>\n<p>If borrowers have accumulated the equivalent of\u200b either 20 \u200cor 25 years of\u2064 qualifying months, they were \u201celigible for forgiveness,\u201d said the department.<\/p>\n<p>In total, the current Biden \u2062administration has approved \u200bmore\u2062 than $116.6 \u200bbillion in student loan forgiveness for more than 3.4 million borrowers, according to the release.<\/p>\n<p>The department also highlighted the Saving on \u2063a Valuable Education (SAVE) plan, \u2062which offers significant benefits \u2064to borrowers. Under this plan, \u200dundergraduate\u2062 loan payments will be cut in\u200b half compared to other IDR plans, borrowers&#8217; balances will not grow as long as they make required payments, \u200dand more of a \u2063borrower&#8217;s income will be protected for basic needs.<\/p>\n<p>\u201cA single\u200b borrower who \u200bmakes less than $15 an\u200c hour will not \u2063have to \u2063make any payments.\u201d<\/p>\n<p>Borrower benefits \u2063from the SAVE plan are \u200bestimated\u200b to begin rolling out this summer.<\/p>\n<h2>SCOTUS Ruling and Biden Counter<\/h2>\n<p>In June, the Supreme Court voted against the Biden administration&#8217;s\u2063 loan\u2064 forgiveness \u2064plan. However, President Biden promised to\u2063 find another way to\u200c provide relief to\u2064 borrowers.<\/p>\n<p>The Department of Education then initiated a regulatory \u2063process to \u2062create &#8220;the most <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-hatches-backdoor-student-loan-forgiveness-plan-to-bypass-scotus-ruling\/\" title=\"Biden devises secret student loan forgiveness plan to sidestep SCOTUS decision.\">affordable repayment plan<\/a> ever&#8221; using\u2064 the authority found under the Higher Education Act. \u200bSeveral programs were put in place to support borrowers.<\/p>\n<p>\u201cPresident Biden, Vice President \u2064Harris, and I will never stop fighting for borrowers, which is why we are using every tool available to provide\u2064 them with\u2062 needed relief,&#8221; said Education Secretary \u200dMiguel Cardona at the time.<\/p>\n<p>Despite the administration\u2019s insistence that low-\u2062 and\u2062 middle-income borrowers\u200d would benefit, experts have raised concerns about the strain these programs may put on the economy, with estimates suggesting up to $1 \u2062trillion \u2062in additional \u200bfederal expenditures over the next decade.<\/p>\n<h2>Eligibility Complications<\/h2>\n<p>The loan forgiveness is \u200conly \u2063applicable to loans made under the IDR plan, \u200dprovided borrowers have made 240 to 300 monthly payments, equivalent to 20 to 25 years&#8217; worth. The loan must also be a federal Direct Loan or a Federal \u2062Family Education\u200b Loan held by the Department of Education.<\/p>\n<p>To be eligible for loan forgiveness, the borrower must meet specific criteria related to repayment\u200c status, \u2063forbearance, deferment, and economic hardship or military deferments.<\/p>\n<h2>Blowback to \u2018Forgiveness\u2019<\/h2>\n<p>The Biden administration&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-announces-39-billion-student-loans-will-be-automatically-discharged-soon\/\" title=\"Biden: B Student Loans to Be Automatically Discharged Soon\">income-based student loan\u2064 repayment plan<\/a> has \u2064faced criticism \u200dfor its potential cost and impact on college students. The SAVE plan alone is estimated to cost $138 billion over a decade, but experts predict the \u2062cost could be much higher.<\/p>\n<p>According to the University of Pennsylvania&#8217;s Penn Wharton&#8217;s Budget\u200d Model, the SAVE plan could cost $475 billion\u2064 over 10 years. \u200dThis cost includes payment reduction for existing loans and reduced\u2063 payments for new loans.<\/p>\n<p>While the Biden administration aims to provide relief to borrowers, concerns remain about the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/experts-divided-over-long-term-economic-effects-of-the-inflation-reduction-act\/\" title=\"Experts Divided Over Long-Term Economic Effects of the Inflation Reduction Act\">long-term economic effects<\/a> of these\u2062 programs.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Department of Education will notify over 804,000 borrowers that their $39 billion in federal student loans will be discharged soon. These discharges are a result of fixes made by the Biden-Harris Administration to ensure accurate loan counts for all borrowers.<\/p>\n","protected":false},"author":186,"featured_media":2001297,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2001296","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2001296","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/186"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2001296"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2001296\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2001297"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2001296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2001296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2001296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}