Student Debt Relief Website Launches, But Borrowers Are Skeptical

The Biden administration’s online application for debt relief hit a rough patch upon launch, and borrowers question if they’ll actually see relief. #studentdebt #relief #newsy

This is a game changer for millions of americans a major step toward wiping out thousands of dollars of student loan debt for millions as the by the administration launched the online application to determine eligibility for loan forgiveness as millions of people fill out the application we’re going to make sure the system continues to work as smoothly as possible

So that we can deliver student loan relief for millions of americans as quickly and as efficiently as possible some 90 to 95 percent of student loan borrowers could be eligible for relief that’s some 39 million americans encouraged to fill out that application borrowers who are eligible for this cancellation should actually be applying right now so that they can

Get the cancellation before repayment starts in january borrowers who meet the criteria include individuals who made less than 125 000 in 2020 or 2021 and couples who made less than 250 000 in the same tax years students who got a pell grant can get up to twenty thousand dollars in forgiveness others up to ten thousand let me be clear not a dime will go to those

In the top five percent of the income bracket period but borrowers are skeptical they’ll ever see the forgiveness as little challenges enter the courts some of that anxiety started to creep back in that it might not be a stable of uh idea as we thought it was um and just the fear that that really good idea could be overturned president biden acknowledged the

Legal fight monday but sounded bullish litigation is is underway and i don’t think our our legends our legal judgment is that it won’t but they’re trying to stop it opponents argue biden’s move is an executive overreach that congress should be the ones to forgive student debt still others including republican florida governor ron desantis a darling of the gop say

It’s simply unfair it’s very unfair to people who took other pathways in life that didn’t require them to take out a lot of loans they made those decisions to not have that debt and not the debts being put on them but legal experts are unsure the legal challenges will stand which is why critics are challenging the move from several legal angles to test which sticks

The big one though that i think has the most credibility um is the student loan servicers um are the ones who are potentially directly harmed by these actions if they are found outstanding proceed i wouldn’t be surprised if this goes all the way up to the supreme court and gets stopped before it ever before a single penny is canceled that keeps borrowers on their

Toes as the application opens and the administration forges ahead with debt forgiveness by the way if you fill out these forms and then you start getting calls from people who say they work for the government and they’re calling to help you with your loans be skeptical and if they ask you to pay for their services hang up and report that to the ftc that’s fraud

You will never be asked to pay or help getting this student debt forgiveness uh at least through the department of education julie all right great info news james packard reporting from la tonight thank you

Transcribed from video
Student Debt Relief Website Launches, But Borrowers Are Skeptical By Newsy