TSR Newz
President Joe Biden’s Secretary of Education, Miguel Cardona, has revealed the next steps for offering student-debt relief and the Biden Administration’s “plan B” before student loan payments resume in October.
Cardona exclusively spoke with TSR News’ Justin Carter about such a rollout as the start of student-loan payments draws near. Interest is set to accrue again beginning Sept. 1.
“I feel upset for the 43 million people that really need that relief,” Cardona said. “Those are the people we’re fighting for. If we can provide support for banks, airline companies, small businesses, and even some congressmen who complained about loan forgiveness… we [need to] provide debt forgiveness for those trying to make ends meet.”
The interest-free payment ‘forbearance’ pause, which has run for three years across nine extensions, began as an emergency COVID-19 pandemic measure in March 2020 under President Trump.
Now, it could take over a year for Biden to finalize and implement a new student-debt relief plan, according to Insider.
However, about two weeks after the Supreme Court shot down its initial forgiveness plan, the Biden Administration is still wiping out upwards of $39 billion in student loans for 804,000 people, The Shade Room reported earlier this month.
Meanwhile, Cardona says the aforementioned relief is already ongoing and available. However, borrowers need to know whether or not they qualify.
“800,000 people received an email last Friday, saying that they’re done paying loans and have debt relief,” Cardona said. “I think it’s important for people to know that we are going to continue to fight to provide targeted debt relief to those who have earned it.”
The White House had released a document showing California, Florida, and Texas have people with the most income-driven payment plans who are now eligible for forgiveness, according to Cardona.
Cardona added that most public servants are unaware that their loans may already be eliminated if they have worked in public service and paid their loans for at least a decade.
“A lot of your listeners are public servants. They might not even know that we fixed the public loan forgiveness system, which says if you pay your loans for ten years, and you’ve been working in public service for ten years, your loans will be eliminated,” Cardona noted.
That’s roughly $45 billion in loan forgiveness for public servants alone, Justin Carter reports. That includes firefighters, police officers, teachers, and social workers.
And $5 billion has been set aside for disabled federal workers, per Carter’s report. Another $22 billion is allocated for students defrauded by now-defunct schools like ITT Tech and Corinthian College.
Cardona says President Biden is following through with his promises after previously proclaiming: “This fight is not over.”
If you recall, The Shade Room reported late last month that the Supreme Court struck down President Biden‘s $400 million student loan forgiveness plan on June 30.
It had declared the administration didn’t have the legal power to cancel student loan debts.
Dissenting Justice Elena Kagan argued that the court found the amount of Biden’s plans assistance “too significant,” per the Washington Post. The decision came despite Congress having previously authorized the forgiveness plan.
However, Cardona says the president had the authority under the HEROEs Act. However, “the Supreme Court saw it the other way.”
“We had legal scholars, independent legal scholars, that believed we had the authority as well. But we’re dealing with a different Supreme Court, as the president said. We wouldn’t go forward if we didn’t think we had the authority to do this.”
Cardona added that Republicans will likely continue to sue to block the president’s loan-forgiveness plan. However, “That doesn’t mean we stop fighting,” he says.
