Tag: student debt relief

Biden administration scales back student debt relief for millions amid legal concerns

Tina Marie (Ms. Cat)

Biden administration scales back student debt relief for millions amid legal concerns

But there are significant business interests that depend on the federally guaranteed loan program — a wide range of private lenders, banks, guaranty agencies, loan servicers and investors. That industry is widely seen, both inside and outside the administration, as presenting the greatest legal risk to the debt relief program.

Many of those companies face economic losses when they lose borrowers who convert their federally guaranteed loans into new loans that are made directly by the Education Department through a process known as consolidation.

Can’t afford to lose those campaign donations!

US to erase student debt for those with severe disabilities

Tina Marie (Ms. Cat)

US to erase student debt for those with severe disabilities

Advocates have pressed the Education Department to eliminate the monitoring period entirely and to provide automatic debt relief to people who the Social Security Administration already identifies as permanently disabled.

Under the new action, both demands will be met. Starting in September, the Education Department will start erasing student debt for 323,000 Americans identified in Social Security records as being permanently disabled.