Biden administration announces $39 billion in student debt relief following administrative fixes
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Updated: 9:00 AM CDT Jul 14, 2023
ROUNDTABLE. AND JOINING US THIS MORNING, DEMOCRATIC POLITICAL ANALYST MARY MARSH, REPUBLICAN POLITICAL ANALYST. ROB, GREAT, GREAT TO SEE YOU GUYS. HAPPY, HAPPY 4TH OF JULY WEEKEND. GREAT TO SEE YOU. SO LET’S START WITH THE WITH THE SUPREME COURT AND THE DECISION TO END AFFIRMATIVE ACTION AND THE COLLEGE ADMISSION PROCESS. THE VOTE WAS 6 TO 3. THE THREE LIBERAL JUSTICES ALL IN DISSENT. POLITICALLY, WHAT DOES THIS MEAN FOR 2024? MARY ANN, LET ME START WITH YOU. SO LET’S BE CLEAR. THE SUPREME COURT ON THURSDAY AND FRIDAY LEGALIZED DISCRIMINATION, AN AFFIRMATIVE ACTION. IT’S NOT JUST BEING ABLE TO DISCRIMINATE AGAINST PEOPLE OF COLOR, SPECIFICALLY BLACKS AND HISPANICS GETTING INTO COLLEGE. THIS NOW OPENS THE DOOR TO DISCRIMINATE I WI OTHERS SAID THAT THIS WOULD HAPPEN. WELL, HERE WE ARE. AND SO NOW WE HAVE A SUPREME COURT WITH A63 MAJORITY WHO IS NOW OPENLY LEGALIZING DISCRIMINATION IN THIS COUNTRY. ROB, I THINK THE ABORTION RULING WILL HAVE A MUCH POTENTIALLY LARGER POLITICAL AFFECT AFFECTING THE AFFIRMATIVE ACTION RULING. FRANKLY, I, I THINK FAIRNESS COMES INTO PLAY WITH AFFIRMATIVE ACTION. AND I THINK A LOT OF AMERICANS AGREE WITH WHAT THE SUPREME COURT DID. ALSO, OUR DELEGATION HAS LOOKED TERRIBLE ON THIS. SENATOR ED MARKEY. IT IS A63 MAJORITY. WHAT’S ED MARKEY WANT TO DO? HEY, WE’RE LOSING AT THE END OF NINE INNINGS. LET’S EXTEND THE GAME FOR TWO MORE INNINGS AND SEE IF WE CAN WIN. HE WANTS TO ADD JUSTICES TO THE COURT. IT DOESN’T WORK THAT WAY, BUT I THINK THERE’S LITTLE POLITICAL EFFECT OF THE AFFIRMATIVE ACTION RULING. I WOULD JUST SAY TWO THINGS. ONE, POLLING OVERWHELMINGLY SHOWS THAT PEOPLE ARE OPPOSED TO ALL OF THESE MEASURES, NUMBER ONE. AND NUMBER TWO, WHEN YOU ANGER WOMEN, HALF OF THE COUNTRY, BLACKS, HISPANICS AND ON THE STUDENT DEBT LOAN PEOPLE WHO OWE MONEY, THE YOUNGER AND OLDER, THAT’S A WINNING FORMULA FOR DEMOCRATS, I THINK ON AFFIRMATIVE ACTION, YOU GOT TO REALIZE THAT IN NINE STATES THIS WAS ALREADY IN EFFECT FOR HIGHER EDUCATION. SO I THINK THAT THE EDGES OF THIS AREN’T AS HARD AS THEY ARE IN THE ABORTION. NINE STATE DOESN’T MAKE 50. WELL, LET’S TALK ABOUT THE STUDENT LOAN DECISION A LITTLE BIT. I MEAN, HERE WE ARE NOW. IT’S JULY THE ELECTION ISN’T FOR ANOTHER YEAR AND A HALF. HOW MUCH WILL THAT THIS WAS CERTAINLY A CORNERSTONE OF OF PRESIDENT BIDEN’S AGENDA. SO HOW MUCH WILL THAT PLAY INTO THE ELECTION, YOU THINK? WELL, PEOPLE WHO OWE STUDENT LOANS HAVE PLENTY TO BE MAD ABOUT. AND THEY’RE NOT ONLY YOUNG FOLKS, AS WE TALKED ABOUT. AND YOU SAID IN THE IN THE SEGMENT WITH BARRY FEINGOLD, IT’S ALSO THE MAJORITY OF PEOPLE OWE THE MONEY, ARE SENIOR CITIZENS. AND ALL OF THOSE PEOPLE MAKE $75,000 OR LESS. SO WOMEN AGAIN, WOMEN, BLACKS, HISPANICS, YOUNG PEOPLE, WHETHER IT’S ABORTION, STUDENT LOANS GO DOWN THE LINE. DISCRIMINATION, GAY RIGHTS, ALL OF IT HAVE PLENTY TO BE MAD ABOUT. AND THEY ARE GOING TO BE REALLY MAD GOING INTO 2024 IN TERMS OF THE STUDENT LOAN SITUATION, DO YOU THINK THAT THAT’S GOING TO BE AN EFFECTIVE TOOL FOR DEMOCRATS IN 2024? I THINK THE SUPREME COURT HELPED BIDEN ON THIS. THEY SAVE BIDEN. I MEAN, THE PRESIDENT, IT’S NOT A DICTATORSHIP. THE PRESIDENT CAN’T JUST SAY, HEY, WE’RE FORGIVING ALL THE STUDENT LOANS. I MEAN, SHOULD HE CAN HE SAY, WE’LL FORGIVE ALL THE SMALL BUSINESS LOANS TO WE’LL FORGIVE ALL THE IRS PENALTIES? NO, CONGRESS HAS TO BE INVOLVED, NUMBER ONE. NUMBER TWO, AGAIN, A FAIRNESS ISSUE HERE. THE PEOPLE WHO REPAID THEIR LOANS. RIGHT. THE PEOPLE WHO WORK TWO JOBS TO PAY FOR COLLEGE AND NOT TAKE LOANS, THEY WERE VERY ANGRY AT BIDEN FOR DOING THIS. NOW IT’S UNDONE BY THE SUPREME COURT. I THINK IT HELPS BIDEN NEXT ITEM, BOTH DONALD TRUMP AND RON DESANTIS HELD EVENTS IN NEW HAMPSHIRE THIS WEEK. ONE GRANITE STATE VOTER SUMMED IT UP THIS WAY. LISTEN. THIS COUNTRY NEEDS DONALD TRUMP. IT DOESN’T NEED SOMEONE THAT WANTS TO PRETEND TO BE DONALD TRUMP. AND THOSE COMMENTS COMING AFTER THE AUDIOTAPES OF TRUMP ALLEGEDLY SHOWING OFF SECRET DOCUMENTS WENT VIRAL. STILL, GOVERNOR DESANTIS WOULD NOT GO ON THE OFFENSIVE AGAIN. WHAT GIVES HERE, MARIANNE? WHY WILL HE NOT GO ON THE OFFENSIVE? WHY WON’T HE PUT THE GLOVES ON AND SWING? IT’S SIMPLE. RON DESANTIS DOES NOT HAVE THE STANDING WITH VOTERS TO BE BELIEVED, EVEN IF HE’S TELLING THE TRUTH ABOUT DONALD TRUMP, THEY DON’T BELIEVE HIM. THEY BELIEVE TRUMP EVEN WHEN HE LIES. SO DESANTIS IS ONLY HOPE IS TO GET PEOPLE TO LIKE HIM, AND THAT WOULD REQUIRE A PERSONALITY TRANSPLANT AT THIS POINT. SO THAT’S TOO LATE. AND HE’S USING HOPE, THINKING TRUMP WILL GET KNOCKED OUT OF THE RACE AND THEY’LL PICK HIM. AND THAT’S NO GUARANTEE EITHER. WHAT DO YOU THINK, ROB, OF COURSE, THE NEW HAMPSHIRE VOTER IS RIGHT. DESANTIS STRATEGY IS ALL WRONG. I MEAN, HE’S TRYING TO BE TRUMP’S MINI ME. AND, YOU KNOW, AND FACED WITH A CHOICE BETWEEN MINI ME AND DR. EVIL PEOPLE ARE GOING WITH DR. EVIL HERE. AND AND DESANTIS SHOULD BE TALKING ABOUT THE FUTURE. HE SHOULD BE TALKING ABOUT TRUMP’S AGE. HE SHOULD BE TALKING ABOUT TRUMP BEING A BIG SPENDER. TRUMP RAISING TAXES ON SOME PEOPLE. HE HAS AN ADVANTAGE, BUT HE’S RUNNING HIS CAMPAIGN IN THE RIGHT WAY, THE WRONG WAY. DESANTIS HAS AN ADVANTAGE BEING YOUNGER, NEWER, BEING ABLE TO SAY, HEY, I CAN BE PRESIDENT FOR TWO TERMS, BUT THIS GUY IS NEAR 80. IN RON DESANTIS EVENT ASKED SPECIFICALLY IF PRESIDENT TRUMP VIOLATED THE PEACEFUL TRANSFER OF POWER AND DESANTIS IS ANSWER WAS ESSENTIALLY THAT HE WASN’T THERE. HE YOU KNOW, HE DIDN’T HAVE ANYTHING TO DO WITH IT. I MEAN, THAT WAS AN OPPORTUNITY FOR DESANTIS. IF HE WANTED TO CRITICIZE THE FORMER. IF YOU DON’T DIFFERENTIATE YOURSELF, YOU CAN’T WIN IN POLITICS. BUT DESANTIS, THE MORE THEY SEE HIM, THE LESS HE’LL LIKE THEM. SO HE’S NOT TAKING ANY CHANCES. COULD USE A PERSONALITY TRANSPLANT. THAT’S THE OTHER PROBLEM. THIS PRESIDENT BIDEN TAKING MORE HEAT OVER HIS SON, HUNTER. HIS RESPONSES GETTING MORE TESTY. THIS IS HIS REACTION TO BEING ASKED WHETHER OR NOT HE WAS SITTING NEXT TO HIS SON, HUNTER, WHILE TEXTING BUSINESS ASSOCIATES IN CHINA. WERE YOU SITTING THERE? WERE YOU INVOLVED? WHERE ARE YOU? I WASN’T I DON’T WERE YOU KNOW, DOES THE HUNTER FACTOR HAVE THE POTENTIAL TO SIGNIFICANTLY HURT PRESIDENT BIDEN’S REELECTION HOPES? ROB HUNTER IS A POLITICAL POWDER KEG WAITING TO BURROW TO TO BLOW EXCUSE ME, SLEAZY, SLEAZY, SLEAZY BUSINESS DEALINGS WITH OUR ENEMIES. TENS OF MILLIONS OF DOLLARS IN REVENUE. AND IT’S NOT JUST HUNTER TWO. IT’S JOE BIDEN’S BROTHER AS WELL. THE FAMILY BUSINESS IS TAKING MONEY FROM OUR ENEMIES FOR POLITICAL INFLUENCE. WHAT DO YOU THINK, MARION? WELL, LET’S TALK FACTS. IVANKA TRUMP, AN ADVISER TO HER FATHER IN THE WHITE HOUSE FOR FOUR YEARS, MADE $646 MILLION, INCLUDING MANY LICENSING FEES FROM CHINA. WELL, HE WAS DOING BUSINESS. THE TRUMP KIDS ARE SLEAZY, TOO. OKAY. WELL, LET ME KEEP GOING HERE. SO I’M WITH, YOU KNOW, INVESTIGATION THERE. NO SCREAMING AND YELLING. I WON’T EVEN TALK ABOUT THE $2 MILLION. JARED TOOK AFTER HE WENT FROM THE SAUDIS, AFTER HE WALKED OUT THE DOOR. SO HERE WE GO. EVERYONE WHO’S COMPLAINING ABOUT HUNTER BIDEN, THE SAME PEOPLE WHO DID BENGHAZI, BENGHAZI, BENGHAZI IN 2016. SO WHEN THERE ARE FACTS NOT LIKE A MYSTERY GUY WHO WAS DISAPPEARED AND MAYBE LEFT OUT WHEN THERE’S LIKE ALL THESE MADE UP TAPES AND EVERYTHING ELSE. SO WHEN THERE ARE FACTS ON HUNTER BIDEN, LET’S TALK ABOUT IT THEN. WHY IS JOE BIDEN SO SENSITIVE, THOUGH? SOMETHING IS THERE BENEATH THE SURFACE? I THINK HE’S DEFENDING A SON WHO’S AN ADDICT. YEAH. OH, GOOD. I’M I’M ENJOYI
Biden administration announces $39 billion in student debt relief following administrative fixes
![CNN logo]()
Updated: 9:00 AM CDT Jul 14, 2023
The Biden administration announced Friday that 804,000 borrowers will have their student debt wiped away, totaling $39 billion worth of debt, in the coming weeks due to fixes that more accurately count qualified monthly payments under existing income-driven repayment plans."For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness," Education Secretary Miguel Cardona said in a written statement.There are currently several different kinds of income-driven repayment plans for borrowers with federal student loans, which base payments on a borrower’s income and family size – regardless of their total outstanding debt. After reaching a set forgiveness threshold of 20 or 25 years, a borrower’s remaining balance is then wiped."By fixing past administrative failures, we are ensuring everyone gets the forgiveness they deserve, just as we have done for public servants, students who were cheated by their colleges, and borrowers with permanent disabilities, including veterans," Cardona added in the statement.Friday's action addresses "historical failures" and administrative errors that miscounted qualifying payments made by borrowers, according to the Department of Education. Those borrowers affected will include Americans with Direct Loans or Federal Family Education Loans held by the department.With student loan repayments resuming in October after a yearslong pause during the pandemic, Friday's action is the latest announcement from the administration to fulfill President Joe Biden's promise to provide millions of Americans debt relief and continues efforts that have already resulted in more debt being canceled during his tenure than any other president.Since Biden took office, his administration has approved $116.6 billion in student debt relief for more than 3.4 million Americans, according to the Department of Education.Despite the Supreme Court last month striking down Biden's loan forgiveness program to provide millions of borrowers up to $20,000 in one-time federal student debt relief, his administration has continued to pursue other avenues to cancel debt and make it easier for borrowers to receive loan forgiveness. Biden at the time responded to the Supreme Court’s decision by pledging a "new path" forward on debt relief."I'm never going to stop fighting for you. We’ll use every tool at our disposal to get you the student debt relief you need, and reach your dreams. It’s good for the economy. It's good for the country," Biden said at the White House last month.At the time he announced that his administration would pursue another plan to provide one-time debt relief based on a different law from the original plan. But it’s a pathway that requires a formal rule-making process, which can take months, and the details of which have not yet been announced. He also announced that his administration will ease the transition period for borrowers ahead of payments resuming with an "on ramp" period to help borrowers avoid penalties if they miss payments during the first year.While not part of today's actions, the Department of Education is also moving ahead with a separate and significant change to the federal student loan system that will enable Americans to enroll in a new income-driven repayment plan.Some parts of the plan, which Biden is calling SAVE (Saving on a Valuable Education), will be implemented this summer and be fully phased in next year now that it has gone through the formal rulemaking process at the Department of Education. It is similar to other income-driven repayment plans the government has developed without facing a successful legal challenge.Once the plan is fully implemented, people will see their monthly bills cut in half and the remaining debt canceled after making at least 10 years of payments.
The Biden administration announced Friday that 804,000 borrowers will have their student debt wiped away, totaling $39 billion worth of debt, in the coming weeks due to fixes that more accurately count qualified monthly payments under existing income-driven repayment plans.
"For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness," Education Secretary Miguel Cardona said in a written statement.
There are currently several different kinds of income-driven repayment plans for borrowers with federal student loans, which base payments on a borrower’s income and family size – regardless of their total outstanding debt. After reaching a set forgiveness threshold of 20 or 25 years, a borrower’s remaining balance is then wiped.
"By fixing past administrative failures, we are ensuring everyone gets the forgiveness they deserve, just as we have done for public servants, students who were cheated by their colleges, and borrowers with permanent disabilities, including veterans," Cardona added in the statement.
Friday's action addresses "historical failures" and administrative errors that miscounted qualifying payments made by borrowers, according to the Department of Education. Those borrowers affected will include Americans with Direct Loans or Federal Family Education Loans held by the department.
With student loan repayments resuming in October after a yearslong pause during the pandemic, Friday's action is the latest announcement from the administration to fulfill President Joe Biden's promise to provide millions of Americans debt relief and continues efforts that have already resulted in more debt being canceled during his tenure than any other president.
Since Biden took office, his administration has approved $116.6 billion in student debt relief for more than 3.4 million Americans, according to the Department of Education.
Despite the Supreme Court last month striking down Biden's loan forgiveness program to provide millions of borrowers up to $20,000 in one-time federal student debt relief, his administration has continued to pursue other avenues to cancel debt and make it easier for borrowers to receive loan forgiveness. Biden at the time responded to the Supreme Court’s decision by pledging a "new path" forward on debt relief.
"I'm never going to stop fighting for you. We’ll use every tool at our disposal to get you the student debt relief you need, and reach your dreams. It’s good for the economy. It's good for the country," Biden said at the White House last month.
At the time he announced that his administration would pursue another plan to provide one-time debt relief based on a different law from the original plan. But it’s a pathway that requires a formal rule-making process, which can take months, and the details of which have not yet been announced. He also announced that his administration will ease the transition period for borrowers ahead of payments resuming with an "on ramp" period to help borrowers avoid penalties if they miss payments during the first year.
While not part of today's actions, the Department of Education is also moving ahead with a separate and significant change to the federal student loan system that will enable Americans to enroll in a new income-driven repayment plan.
Some parts of the plan, which Biden is calling SAVE (Saving on a Valuable Education), will be implemented this summer and be fully phased in next year now that it has gone through the formal rulemaking process at the Department of Education. It is similar to other income-driven repayment plans the government has developed without facing a successful legal challenge.
Once the plan is fully implemented, people will see their monthly bills cut in half and the remaining debt canceled after making at least 10 years of payments.
