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

Student activists have spent multiple days occupying the lawns at Columbia University, calling for ...

Celina Tebor and Zoe Sottile, CNN

Rabbi associated with Columbia University recommends Jewish students ‘return home’ amid tense protests on campus

A rabbi recommended that Jewish students “return home as soon as possible and remain home” amid ongoing protests.

1 day ago

The Huntsman Cancer Institute in Salt Lake City, Utah.A Utah cancer researcher says more study is n...

Don Brinkerhoff and Simone Seikaly

Utah cancer researcher says new accelerated aging study needs more examination

A new study says accelerated aging may be linked to early-onset cancer, but a Utah cancer researcher says more investigation is needed.

2 days ago

A crew made of up BYU students films a Coca-Cola branded advertisement at the Thanksgiving Point Me...

Cassidy Wixom, KSL.com

Coca-Cola ad made by BYU students wins film competition, will screen at theaters

An ad for Coca-Cola made by BYU students may be showing at your local movie theater sometime soon.

3 days ago

A team at the University of Utah has received funding to research if ultrasound technology can help...

Britt Johnson

University of Utah using funding for ultrasound research to treat addiction

Could an ultrasound help cure addiction? A team of researchers at the University of Utah thinks so.

3 days ago

sign says "trans lives matter," the sign was for a protest about how slc school district was implem...

Heather Peterson

Implementation of new Utah bathroom law causes confusion in SLC School District

A new Utah bathroom law that takes effect on May 1 is at the center of some confusion about what schools do and don't need to do.

3 days ago

Students participate in the groundbreaking ceremony for the new West Lake Jr. High building in 2022...

Kyle Remund

West Lake Jr. High rebuilds after 2020 earthquake

After being severely damaged in 2020, West Lake Jr. High is being rebuilt with earthquake safety in mind. KSL's Dave and Dujanovic interviewed Ben Horsley of Granite School District about how the new building is being brought up to seismic code and how the district is preparing for future emergencies.

3 days ago

Sponsored Articles

Young couple hugging while a realtor in a suit hands them keys in a new home...

Utah Association of Realtors

Buying a home this spring? Avoid these 5 costly pitfalls

By avoiding these pitfalls when buying a home this spring, you can ensure your investment will be long-lasting and secure.

a person dressed up as a nordic viking in a dragon boat resembling the bear lake monster...

Bear Lake Convention and Visitors Bureau

The Legend of the Bear Lake Monster

The Bear Lake monster has captivated people in the region for centuries, with tales that range from the believable to the bizarre.

...

Live Nation Concerts

All the artists coming to Utah First Credit Union Amphitheatre (formerly USANA Amp) this summer

Summer concerts are more than just entertainment; they’re a celebration of life, love, and connection.

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.

Biden administration kicks off student loan debt forgiveness process