Finally! Glimmers of Hope for Student Debt Cancellation in 2022
On Monday it was announced that Richard Cordray has been appointed to lead the Education Department’s Office of Federal Student Aid. Previously, he was at the helm of the Consumer Financial Protection Bureau (CFPB) from 2012 through 2017.
Cordray is an ally of Senator Elizabeth Warren, who has been a vocal advocate of broad-based student loan cancellation. Warren has argued that the President has the authority to unilaterally cancel student loans and has been pushing for him to forgive up to $50,000 in debt per borrower. If this passes, 36 million borrowers would see their entire loan balances erased completely based on current DOE (Department of Education) data.
After Cordray’s selection, which Warren had pushed for, she stated that Cordray would “apply his fearlessness and expertise to protecting student loan borrowers” and would bring “much needed accountability to the federal student loan program.”
Another Payment Extension?
Cardona has responded to questions multiple times recently, “”I don’t have any information now to share with you about when it would end or what the conversations are about when it’s going to be lifted,” Cardona said. “I know we have a date, and it could be that it’s extended. Or it could be that it starts there. But what I will say is that our borrowers will have ample notice.”
For more than two years, federal student loan payments have been suspended, and discussions about student loan forgiveness have yet to materialize for the vast majority of Americans. While no official decisions on widespread student loan forgiveness have been made yet, it is feasible that the payment freeze will be prolonged beyond September.
Political pressure is being applied to have student debt forgiven.
The Biden administration’s latest — and largest — step to eliminate federal student loan debt for borrowers who were misled by for-profit colleges was announced on Wednesday. The administration has also made debt relief more accessible to permanently disabled borrowers and public sector employees.
The recent notification takes the total amount of student loan debt cancellations allowed by the Biden administration since January 2021 to $25 billion. President Joe Biden has also repeatedly prolonged the pandemic-related payment hold, most recently extending it from May 1 to August 31.
However, many other Democrats have been pushing on Biden to cancel up to $50,000 of student loan debt for each of the 43 million students, and the administration’s piecemeal approach has disappointed them.
Biden has so far resisted the pressure, but he has stated that he is willing to forgive some federal student loan debt. As a response to the pandemic, he proposed canceling at least $10,000 in student debt for everyone, as well as cancelling all undergraduate tuition-related federal student debt from two- and four-year public schools and universities for borrowers earning up to $125,000 per year on the campaign trail.
Learn the 10 best programs currently available to help you successfully pursue your discharge now
Visit TitanPrep.com to learn more.