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Blocked by Injunction, Biden Said He’s Ready to Approve 16 Million Student Loan Cancellation Applications

By Hugh T. Ferguson, NASFAA Senior Staff Reporter

President Joe Biden rounded out the week making speeches and attending last-minute rallies aimed at bolstering congressional Democrats’ campaigns, and used remarks to home in on his student loan debt cancellation program, which is currently being halted by a Republican-led legal challenge. If not for a court injunction, roughly 16 million borrowers should have seen their loan cancellation applications approved in the coming days, according to the White House.

The remarks came shortly before a rally in New Mexico where the president said that close to 26 million Americans have submitted applications for student debt cancellation.

Biden said that borrowers should have been able to see the relief reflected in their accounts in the coming days, but the actual cancellation is on hold due to an injunction recently issued by a federal judge. The request to halt the program came from a group of Republican-led states who argued the loan forgiveness would cause them financial harm due to lost tax revenue.

In the speech, Biden said that borrowers would likely hear from ED by the end of the week and that the department will begin sending approved applications to student loan servicers with the “necessary paperwork” to carry out the cancellation — even though servicers will not be able to implement the relief until there is some clarity on the legal challenges to the president’s executive action.

Conservatives and congressional Republicans have continually criticized the program and have filed a number of lawsuits attempting to block the president from issuing the relief.

Stay tuned to Today’s News for more information on the implementation of student loan debt relief.

 

Publication Date: 11/4/2022


Albert M | 11/4/2022 2:56:14 PM

Just think what would happen if a bank forgave 16 million in debt/expected revenues

David S | 11/4/2022 10:1:27 AM

Republicans have been advocating lower taxes on the federal state and local levels for decades; it is undeniably the cornerstone of their economic and governing philosophy. Tax cuts, tax cuts, tax cuts.

So if a decrease in tax revenue causes these states harm, why do they push for tax cuts?

Susan Y | 11/4/2022 8:20:46 AM

I believe the statement should be hone in, not home in.

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