Biden told NewsNation that student loan borrowers could see their debt forgiven within weeks. He said he is confident he will win the GOP lawsuits trying to block the loan forgiveness. Relief remains on hiatus following a ruling by the 8th Circuit Court of Appeals. Something is loading.
Thank you for your registration!
Access your favorite topics in a personalized feed on the go. download app
The fate of student loan forgiveness is still uncertain, but President Joe Biden is confident it will all go his way.
Last week, the conservative 8th Circuit Court of Appeals temporarily suspended Biden’s debt relief plan, in response to a lawsuit filed by six Republican-led states that argued that the plan would writing off debt up to $20,000 would hurt their state’s tax revenue. Although the court’s decision does not mean that the repair is blocked – it only means that the Ministry of Education cannot repay any loans until a final decision is made on the legality of the repair – borrowers are still in limbo pending this decision.
Biden isn’t too worried.
“We’re going to win this case,” Biden told NewsNation. “I think in the next two weeks you’re going to see those checks coming out.”
—NewsNation (@NewsNation) October 27, 2022
Since Biden announced the broad debt relief in August, his administration has maintained its authority to enact this one-time loan forgiveness under the HEROES Act of 2003, which gives the Secretary of Education the ability to waive or change student loan balances in relation to a national emergency, such as COVID-19. While conservative lawsuits have challenged that authority, arguing it is an excess of the law and should require congressional approval, Biden’s Justice Department defended its actions in a recent legal filing.
“Congress could hardly have expressed more clearly its intention to give the Secretary maximum flexibility to ensure that borrowers do not find themselves in a more difficult financial situation due to a national emergency, and the Secretary complied with the clear terms of the law,” the Justice Department wrote.
However, it would be surprising if the debt was actually paid off in two weeks, as Biden said, given that the plan is currently on hold. While the Department of Education can continue to process requests for relief as borrowers request it, student loan companies cannot yet apply relief to borrowers’ accounts. The administration had previously estimated that part of the process could take up to six weeks. The ministry even recommended that borrowers submit their applications by mid-November to allow enough time for relief to be processed before payments resume in January 2023.
For now, all borrowers can do is apply for relief, if they haven’t already, through the simple form on studentaid.gov and wait for the appeals court to decide whether it will either dismiss the GOP states deal or continue to suspend Biden’s debt. backup plan.
“What we need to do now is get as many people as possible to apply, and take the fight to the courts,” Education Secretary Miguel Cardona said at a town hall in the NAACP on Wednesday night. “We believe that not only do we have the authority, but it’s the right thing to do to help people get back on their feet.”