Biden’s Debt-Cancellation Plan Draws Praise and Skepticism

"Millions of Americans would see their student-debt load lightened by $10,000 each under a plan unveiled by President Biden on Wednesday, ending months of speculation about whether and how he would keep a campaign promise to help borrowers. The president also extended the pandemic-era pause on federal student-loan repayments for the last time, saying they would resume in January instead of in September," The Chronicle of Higher Education reports.

..."The National Association of Student Financial Aid Administrators said it expected its members would receive an onslaught of questions from borrowers about who is eligible for loan forgiveness and how to apply for it. The Education Department said on Wednesday that more details would be released soon.

'A lot of nuances in here will need further clarification, and financial-aid offices live in the nuance,' the association’s president, Justin Draeger, said.

Draeger emphasized that public policy must be carried out effectively in order to achieve its goals. He said that programs with income limits would be more successful if the federal government automated the application process, as it appears the Education Department intends to do for loan forgiveness. The department said it held relevant income data for nearly eight million borrowers who may be eligible to receive relief automatically as a result."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.


Publication Date: 8/24/2022

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