Democratic lawmakers are pressing President Joe Biden to expedite student debt cancellation for defrauded borrowers before the leadership transition in January.
In a concerted effort, 75 Democratic lawmakers, spearheaded by Senators Dick Durbin and Ed Markey alongside Representative Maxine Waters, have called upon the Education Secretary, Miguel Cardona, to prioritize the processing of borrower-defense applications. These applications, submitted by students who allege they were misled by their educational institutions, could lead to the discharge of their loans if approved.
As the deadline for the transition of presidential power approaches, these lawmakers emphasize the urgency of granting relief to borrowers who have been waiting for their applications to be addressed. They argue that the uncertainty surrounding debt relief could increase under the incoming administration, referencing past actions where a backlog of borrower-defense claims resulted in prolonged waiting periods for students seeking resolution.
Markey, addressing the issue publicly, stated, “We’re here today to demand that the Department of Education deliver on President Biden’s commitment to debt relief and process all outstanding borrower defense relief before President Trump slams the door shut on borrowers on January 20.” This statement underlines the critical nature of swift action to alleviate the financial burden on borrowers who attended fraudulent schools.
Furthermore, the lawmakers’ communication with the Education Department highlights the necessity for discharging loans for thousands who have already been approved for relief but have yet to see their balances cleared. In addition, they propose that the department should exercise its authority to implement group discharges for borrowers whose institutions have a recorded history of predatory practices.
In late November, Democratic Representative Bobby Scott also urged the Education Department to consider broader student-debt relief, not only for those qualifying under borrower defense but also for Public Service Loan Forgiveness programs. This initiative, which forgives remaining debts for public-sector workers after a decade of qualifying payments, faced potential elimination during Trump’s first term.
An Education Department spokesperson has noted the ongoing commitment to assisting borrowers taken advantage of by their colleges, ensuring they receive due relief without additional effort on their part. The department has paused payments for borrowers with approved discharges and suggests that those with application inquiries utilize the borrower-defense hotline for assistance.
Historically, the Biden Administration has canceled student debt for nearly 5 million borrowers, including $28.7 billion for over 1.6 million individuals defrauded by their institutions. However, numerous applications remain unresolved, creating a race against time to deliver promised support before the administration changes hands.
Durbin stressed the importance of resolving these claims promptly, noting that a continuation of past administrative practices could hinder students from accessing the relief they deserve. During a Senate floor session, he declared, “Our nation’s students, who are simply trying to better their lives, deserve better.”
The push from Democratic lawmakers highlights the pressing need for expedited debt relief processes as the window for action narrows. The ongoing efforts to address student debt underscore the significance of ensuring financial fairness and support for those misled by educational institutions.
Source: Businessinsider
