EDUCATION + SCHOOLS

Biden administration kicks off student loan debt forgiveness process

Sep 30, 2022, 9:00 AM

US President Joe Biden announces student loan relief on August 24, 2022 in the Roosevelt Room of th...

US President Joe Biden announces student loan relief on August 24, 2022 in the Roosevelt Room of the White House in Washington, DC. - Biden announced that most US university graduates still trying to pay off student loans will get $10,000 of relief to address a decades-old headache of massive educational debt across the country. Photo credit: OLIVIER DOULIERY/AFP Getty Images

  (CNN) — The Biden administration on Thursday kicked off its efforts toward forgiving student loan debt, sending updates on the process via email before the window to apply opens next month.

In August, President Joe Biden announced his decision to cancel up to $10,000 in student loan debt for individuals making less than $125,000 a year or as much as $20,000 for eligible borrowers who are also Pell Grant recipients.

An email from the Department of Education sent to Americans who signed up for updates and obtained by CNN Thursday offered some details on who is eligible and what to expect in the process.

“In October, the US Department of Education will launch a short online application for student debt relief. You won’t need to upload any supporting documents or use your FSA ID to submit your application,” the email said.

It continued, “Once you submit your application, we’ll review it, determine your eligibility for debt relief and work with your loan servicer(s) to process your relief. We’ll contact you if we need any additional information from you.”

The email said that additional updates would be sent “over the coming days” but did not provide a specific date in October for when the application window will open. It will extend through December 2023. It also warned readers to “beware of scams.”

“You might be contacted by a company saying they will help you get loan discharge, forgiveness, cancellation, or debt relief for a fee. You never have to pay for help with your federal student aid. Make sure you work only with the US Department of Education and our loan servicers, and never reveal your personal information or account password to anyone,” it said.

The Department of Education is “working closely” with the White House through the implementation process, a spokesperson for the department said, and is meeting daily.

“Our goal is to provide borrowers a seamless and simple experience, working closely with the servicers who will actually process the relief,” the spokesperson said in a statement to CNN.

Biden’s student debt move opened new divisions both inside his party and out. While some supporters hailed the decision, progressives say it didn’t go far enough, some Democratic economists warned it could worsen inflation but other economists say the combined impact will be minimal on the economy at large while Republicans say it is unfair and costly. The nonpartisan Congressional Budget Office said in a report Monday that the cancellation could come at a price of $400 billion, but noted that those estimates are still “highly uncertain.”

The White House argues that the cost should be viewed over a 30-year time period.

And in one of the first significant legal challenges to the loan forgiveness plan, a federal judge on Thursday rejected a bid to block the Biden administration’s plan.

In doing so, US District Judge Richard Young hinted that there were likely procedural issues in the lawsuit that would make it difficult for the legal challenge against the policy to move forward.

A public interest lawyer had filed the lawsuit Tuesday, arguing that the policy is an abuse of executive power. Plaintiff Frank Garrison claimed that because of the forthcoming student loan forgiveness, he would be forced to pay state taxes on the amount canceled — an expense he would otherwise avoid.

The lawsuit, which named the Department of Education as a defendant, challenged the agency’s “unacceptable abuse of executive authority to restore the rule of law and to enforce the Constitution’s separation of powers,” according a press release from the Pacific Legal Foundation.

White House spokesman Abdullah Hasan said in an emailed statement that “the claim is baseless for a simple reason: No one will be forced to get debt relief. Anyone who does not want debt relief can choose to opt out.”

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Education + Schools

BYU regularly has honored the "no Sunday" play rule in each tournament it's played in, but it's bei...

Mitch Harper

NCAA committee dropped BYU down to no. 6 seed because of ‘no Sunday’ rule

BYU basketball was the highest-rated 5-seed in the 2024 NCAA Tournament, yet they ended up with a 6-seed because the "no Sunday" rule.

21 hours ago

Manager Stephen Jarrett places pies on a counter at Michele's Pies, Wednesday, March 13, 2024,...

CURT ANDERSON Associated Press

What’s Pi Day all about? Math, science, pies and more

Math enthusiasts around the world, from college kids to rocket scientists, celebrate Pi Day on Thursday, which is March 14.

4 days ago

utah education foundation...

Jessica Lowell

Utah Education Association opposes changes to education funding

The proposed ballot measure would change the way Utah funds education. Right now all of the funds from income tax go to education.

5 days ago

Thousands of students take part in the SheTech Explorer Day at the a Mountain America Exposition Ce...

Emma Keddington

High school students gather for SheTech Explorer Day

SheTech Explorer Day brought thousands of high school girls from all around Utah to Mountain America Expo Center.

5 days ago

Brigham Young Cougars center Aly Khalifa (50) celebrates a 3-pointer during the Big 12 conference t...

KSL Sports

‘This Is My Moment:’ Aly Khalifa lifts BYU while fasting at Big 12 Tournament

BYU center Aly Khalifa played through a Big 12 Tournament game during Ramadan.

5 days ago

(AP Photo/Rick Bowmer) Follow @amandadickson...

Amanda Dickson

Dickson: I’m committed to not texting my kids while they’re in school

Amanda Dickson says she's totally guilty of texting her kids while they're in school. She's committed to stoping it.

5 days ago

Sponsored Articles

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

Biden administration kicks off student loan debt forgiveness process