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A total of 26.26 million student loan borrowers have either applied for relief under President Joe Biden’s Student Loan Forgiveness Program or are automatically deemed eligible for relief, according to new White House data. 16.48 million fully approved applications were sent to loan servicers and waived.
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New data released on Jan. 27 showed, by state, “the number of people who applied for debt relief and whose applications were approved by the State Department before the government was blocked from debt forgiveness,” the statement said. ing.
In November 2022, the Department of Education had to stop accepting applications as a result of multiple lawsuits. The loan servicer was not forgiven of the debt, according to the White House.
According to the White House, more than 40 million borrowers are eligible for the debt relief program, with almost 90% of the relief benefits going to borrowers with annual incomes of less than $75,000.
In a statement, the White House said, “Millions of borrowers could benefit from that relief today. Without it,” he said.
For example, in Texas, where the lawsuit originated, 2.16 million student loan borrowers applied and 1.39 million fully approved applications went to loan servicers for repayment, according to White House data. Sent.
But multiple lawsuits and injunctions have halted the program announced in August 2022, leaving millions of borrowers to await their fate until February 28, when the Supreme Court hears.
Next, the administration announced that the student loan moratorium, which was scheduled to end on December 31, 2022, will be extended until the end of June 2023, pending Supreme Court review of the program.
Most recently, on January 20, Arizona’s new Democratic Attorney General Chris Mays dismissed one of the lawsuits filed by former Republican Attorney General Mark Brunovich on September 29, 2022. Canceled program,” he as GOBankingRates previously reported.
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Biden’s plan has up to $10,000 in federal student debt relief for borrowers with incomes below $125,000 ($250,000 for households) in 2020 or 2021. Additionally, for Pell Her Grant recipients, that amount increases to up to $20,000 in student loan cancellations. For dependent students, eligibility is based on parental income. Most federal loans are covered, including Undergraduate and Graduate Direct Loans, Parent’s Her PLUS and Graduate Her PLUS Loans, and Consolidated Loans. Federal Family Education Loan (FFEL) program loans held by ED, Perkins her loans held by ED, and loans in default, according to Studentaid.gov.
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This article originally appeared on GOBankingRates.com: Student Loan Forgiveness: 16 Million Approved, But Will It Really Be Bailed Out?
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