President Joe Biden officially started the student loan program application process on Monday and announced that 8 million borrowers have already applied for loan forgiveness during the federal soft launch over the weekend. He promoted an application that the president said would take less than five minutes to fill out, encouraging tens of millions of people to visit studentaid.gov for potential relief. Biden said an early “beta release” version of the online form, released late Friday, handled the initial application stream “without glitches or difficulties”. “This means that starting this week, more than 8 million Americans are on their way to receiving life-changing aid,” former Vice President Biden, along with education minister Miguel Cardona, said. The president has called his program a “game changer” for millions of Americans struggling with student loan debt. Learn more here and fill out the Student Loan Waiver Application. The number of borrowers who applied during the trial period already amounted to more than a quarter of the total applicants projected by the administration, underscoring the program’s popularity and borrowers’ aspirations for debt relief. Biden’s plan requires $10,000 in federal student debt relief for people making less than $125,000 a year or households making less than $250,000 a year. Those who receive a Federal Pell Grant to attend college may receive an additional $10,000. The plan would allow 20 million people to fully pay off their federal student debt. Former Vice President Joe Biden promised extensive student debt relief as a presidential candidate, but it has been under internal deliberation for over a year over legitimacy. His plan has sparked heated debate ahead of the midterm elections, and Republicans and some Democrats say it’s an unfair lure for college graduates. But on Monday, Biden gave an all-out argument for his own decision. Former Vice President Joe Biden said, “If elected president, I will make a promise that the government will work for the people.” “Their anger is wrong and hypocritical,” Biden said. Recover from the plague. The Biden administration on Wednesday announced a student loan debt relief plan that includes a number of debt reliefs for millions of American borrowers, including up to $20,000 in debt relief. Do you have more questions about student loans and Biden’s decision? Inside senior economic policy reporter Ayelet Sheffey joins LX News to discuss. Former Vice President Biden said Monday that the White House received more than 10,000 comments and thank-you calls from borrowers. In fact, thousands of people have shared the form on social media, and many have submitted applications with little or no problem, he said. The Biden administration touted it as a “simple and intuitive” application. It asks for the borrower’s name, social security number, contact information and date of birth. Income information is not required, but asks the user to check the box certifying eligibility under the program’s income limits. This information will be collated with Department records to help identify applicants who are likely to exceed income limits, the administration says. Those people will be asked for more information to prove their income. The Department of Education said in a recent report to the White House Office of Management and Budget that it would need between 1 and 5 million people to provide additional documentation. The cost of creating and processing the form is estimated at nearly $100 million, a figure that has angered supporters who see the application as an unnecessary barrier. The form is meant to help rule out about 5% of borrowers who exceed their income limits, but advocates say it may stop some low-income Americans in need of relief. Once the Ministry of Education begins processing applications, borrowers should expect their debt to be discharged within four to six weeks, officials say. Most applications submitted by mid-November will be processed by January. 1 — The day federal student loan payments are expected to resume after being suspended during the pandemic. Borrowers can submit applications until the end of 2023. Federal student loan repayment was due to resume on May 1. The Biden administration is pushing ahead with debt relief despite battling a growing number of legal issues. Six Republican-led states are suing to block the plan, saying it would go beyond Biden’s powers and cause financial losses to student loan service providers hired to administer and earn interest on federal student loans. are doing A federal judge in St. Louis is currently reviewing the state’s request to end the plan. In court documents, the Ministry of Education promised not to complete debt relief before October 23. Biden admitted on Monday that the lawsuit was ongoing, but said his administration did not believe the lawsuit would ultimately affect the program. The ___ Associated Press training team is supported by the Carnegie Corporation of New York. AP assumes full responsibility for all content.
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