Biden’s Education Department Releases Plan To Cancel Student Debt For Certain People | Eastern North Carolina Now | The U.S. Department of Education proposed new regulations on Wednesday to cancel student loans for individuals whose schools closed or who are permanently disabled.

Coronavirus Disease 2019 (COVID-19)
    Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Ben Zeisloft.

    The U.S. Department of Education proposed new regulations on Wednesday to cancel student loans for individuals whose schools closed or who are permanently disabled.

    According to a press release from the agency, the policy would also apply to students whose schools "lied to them" and "public service workers who have met their commitments" under the Public Service Loan Forgiveness (PSLF) program, which is defined as making payments for 120 months while working full-time for a government entity or nonprofit organization.

    The move comes after the Biden administration canceled roughly $26 billion in student loans, including for students who attended for-profit colleges that have shut their doors, according to the press release.

    "We are committed to fixing a broken system. If a borrower qualifies for student loan relief, it shouldn't take mountains of paperwork or a law degree to obtain it," Education Secretary Miguel Cardona said. "Student loan benefits also should not be so hard to get that borrowers never actually benefit from them. ... These proposed regulations will protect borrowers and save them time, money, and frustration, and will hold their colleges responsible for wrongdoing."

    The proposed regulations would let borrowers make group claims more quickly and "curb predatory behavior" from schools by "recouping the costs of such discharges from the college, running for at least six years following the borrower's last date of attendance at the school."

    Indeed, the Department of Education settled a class-action lawsuit last month after advocacy groups said the agency ignored students' loan cancellation claims. Cardona greenlit the elimination of $6 billion in loans for 200,000 borrowers. Likewise, the Department of Education recently canceled debt from former attendees of Corinthian Colleges, a for-profit entity that filed for bankruptcy in 2015, nixing $5.8 billion in debt among 560,000 borrowers.

    "As of today, every student deceived, defrauded, and driven into debt by Corinthian Colleges can rest assured that the Biden-Harris administration has their back and will discharge their federal student loans," Cardona remarked.

    Leading Democrats have argued for the past two years about possibilities for large-scale, one-time loan cancellation policies. The Biden administration is reportedly considering a plan to cancel $10,000 in student loans per borrower after making a similar promise on the campaign trail. However, Senate Majority Leader Chuck Schumer (D-NY) argued last July that "all President Biden has to do is flick his pen" and erase up to $50,000 per borrower, with no need for legislative action.

    Two weeks ago, Schumer sought to dispel the "awful myth" that student loans are "not a problem that concerns the wealthy or the Ivy League," arguing that "all of these fat cats, and people who never want to see help for working people and poor people come up with these myths."

    In response, Cato Institute policy scholar Neal McCluskey directed The Daily Wire to Brookings Institution data showing that almost one-third of student debt is owed by the wealthiest 20% of households, while 8% is owned by the bottom 20%. "Wealthy people do take on debt, and a lot of that debt is for graduate school," McCluskey remarked, adding that "wealthier people are more likely to go to college and in particular, more likely to go to graduate school than lower-income families."

Inarguably, the policies of the Democrats in congress and Joe Biden as the Executive is plunging the United States into a recession, if we are not already there; a recession that was completely avoidable. Will abrupt changes in policies occur in time?
  Yes, the Democrats have a bold plan yet to be revealed to save us.
  No, there will have to be a complete undoing of the damage done by these Democrats.
  I can't do simple math, so how am I to understand the concept of basic economics.
244 total vote(s)     What's your Opinion?

Go Back


Latest Op-Ed & Politics

Former President Trump on Wednesday claimed that the Department of Justice (DOJ) and the FBI had asked his legal team in early June to put an extra lock on the door to the room where boxes of documents reportedly marked as classified were stored.
To paraphrase Alice, who used the term to describe her adventures in Wonderland, election politics in America is getting “curiouser and curiouser.” North Carolina has been in the forefront of innovation and implementation
The trouble with socialism is that you eventually run out of other people's money
A key measure of inflation rose to a new 40-year high in June, according to new data, marking troubling news for Americans as the economy officially entered a recession on Thursday.
CDC Director Rochelle Walensky said during an interview on Sunday that “there is a plan” to get unvaccinated essential workers “education and counseling” so they will feel comfortable getting vaccinated.


N.C. Republican Congressional delegation outraged at FBI raid on former President Donald Trump's Mar-a-Lago home in Florida.
A federal magistrate judge has ordered the Department of Justice (DOJ) to respond to requests to make public the warrant authorizing the FBI’s unprecedented Monday raid of former President Donald Trump’s residence.
New Zealand Prime Jacinda Ardern smiled during an interview late last week when saying that she was effectively creating two different classes of people in her country that have different levels of freedom depending on whether they are vaccinated.
On Tuesday, Democrats filed an emergency motion to stay federal Judge James Dever’s decision last week to order the North Carolina State Board of Elections to place the Green Party’s candidates on the ballot.


Communist China threatened to shoot down Democrat House Speaker Nancy Pelosi’s (D-CA) plane on Friday if the 82-year-old lawmaker tries to visit Taiwan.


Back to Top