Stunning Statement on Student Loan Forgiveness From President Biden

I'm going to hold your hand when I tell you this, but if you had hopes of student loan forgiveness, please don't shoot the messenger. But unfortunately, it's not going to happen. That's because late last night, the Biden administration withdrew its Plan B student loan forgiveness proposal that had been in the works for more than a year to cancel federal student debt for about 38 million Americans. Now, I have covered this proposal that the President and the Department of Education has been working on through the rulemaking process in great detail on my page. In fact, I interviewed the Department of Education about it. This is that new student loan forgiveness program that Biden set in motion after the Supreme Court struck down his Plan A attempt to cancel student loan debt. This Plan B program would have allowed for student loan forgiveness if you met one of five different criteria, things like if your loan balance is bigger now than it was when you first took out the loan because of runaway interest, or if you had a specific type of financial hardship, you would have qualified. It's just a few of the criteria. The rule was finalized in the fall, but almost immediately, a group of Republican-led states sued the federal government, and in October, the whole plan was blocked by the courts through a temporary injunction. Now, the administration is basically giving up on the entire thing. Why? Officially, the filing says operational challenges. That's a fancy way of saying because time just ran out. President Biden will be out of office in less than a month, and the litigation to support this rule will not be finished by the time he's out of office. On top of that, President-elect Trump is not a fan of these student loan forgiveness efforts. In fact, he's called student loan forgiveness efforts like this, vile, and has vowed to shut down all of Biden's student loan forgiveness efforts once he gets into the Oval Office. So in the notice withdrawing the final rule, the Department of Education and the Biden administration says they stand by their assertion that they have every right to make this rule, but they are canceling it now because they would rather spend the remaining time that Biden is in office focusing on helping borrowers get back on track with their payments and getting out of default. Now, this doesn't mean that all student loan forgiveness programs are disappearing. That's not what this means. The established programs like the public service loan forgiveness program and other forgiveness programs that are available to you after you've paid on your loan for a certain period of time are all still there. It just means that this new program from the Biden administration is not going to happen. In the end, the Department of Education says President Biden, through various programs while he was in office, has been able to forgive nearly $180 billion in student loan debt for almost 5 million borrowers. So if you want to read this notice of withdrawal, I will email it out to you in my next News Girl News Roundup email, so make sure you sign yourself up.