Joe Biden Didn’t Cancel $1 Billion In Student Loans
$1 billion dollars in student loans just got cancelled, or so, that’s what Joe Biden has led borrowers to believe.
It’s a head-scratching move that can only be described as superfluous.
The Biden Administration is set to cancel up to at least $1 Billion in student loans (this is not to be confused with student loan forgiveness).
But here’s the kicker: this will only be applicable to around 72,000 students. And more importantly — we already have programs in place that let’s borrowers seek relief through the U.S. Department of Education by arguing either the college they attended closed unexpectedly; they were misled/coerced or ineligible at the time; or they were ripped off by their institution through deceptive practices e.g. promises of a career after graduating, hidden fees, etc.
While the Trump Administration, i.e. one Betsy Devos, was stricter on borrowers who sought relief — citing frivolous claims would give borrowers “free money” and thus would be costly for taxpayers—this move by the Biden Administration is unequivocally a waste of time.
But perhaps the most jarring revelation about this proposal is it inadvertently admits that attempting to go through the federal government to make the claim you were ripped off was futile in the first place, even prior to Devos. Nothing has changed other than the process may possibly move along quicker. But you still have to prove to the federal government that your school violated the law. And for 72,000 borrowers; a lot of paperwork, witnesses, statements, etc. is possibly long gone by now.
Biden’s Administration says the process will be streamlined and borrowers who are approved will receive full discharges from their loan(s).
But the bottom line is: this was money the federal government had. They can burn $1 billion dollars in an instant on whatever they see fit. There’s no figures or data to even be sure that $1 billion actually goes out.
The upside is you can request derogatory student loan remarks be deleted from your report.
In the meantime, we’ll see just have to wait and see what happens with actual student loan forgiveness.