Borrower advocates worry that if the bill is not vetoed as Biden has promised, 40 million student loan borrowers could face backpay for those paused payments and have new interest charges added to their debt.
, which has suspended most federal student loan payments and interest through this summer. It would also prevent the implementation of Biden’s up to $20,000 cancellation of student debt — regardless of how theBiden has promised , 40 million student loan borrowers could face backpay for those paused payments and have new interest charges added to their debt.
They also are concerned that debt cancellation borrowers recently received would be reversed. “It is shameful that legislators would endorse measures that harm the very heroes in our communities — veterans and nurses — who are still grappling with the aftermath of the pandemic and its profound economic impact," Natalia Abrams, executive director of the Student Debt Crisis Center, said in a statement. "We urge President Biden to fulfill his promise to veto this bill and put an end to these attacks against hardworking families ensnared in debt." Activists and students protest in front of the Supreme Court during a rally for student debt cancellation in Washington, DC, on February 28, 2023. The bill’s passage, which shocked borrower advocates, comes after the White House this week agreed to not extend the forbearance and that paused student payments would restart in September — regardless of the Supreme Court outcome — in a debt ceiling deal with House Speaker Kevin McCarthy . “Today’s vote makes crystal clear exactly who stood up and fought to protect the economic livelihoods of millions of people with student loan debt — and who schemed to keep them drowning in the debt despair of our nation’s student loan crisis,” Mike Pierce, executive director of the Student Borrowers Protection Center, said in aWhether the bill would require borrowers to pay back payments remains an open question that Republicans who supported the bill have pushed back on. "Nowhere in this resolution does it mandate backpay," Rep. Virginia Foxx said last week. "It is prospective, not retrospective. If anything, it will be [Education] Secretary Cardona’s decision to enact backpay.”Borrower advocates also contend that the resolution would reinstate debt for borrowers who received debt cancellation under the public service loan forgiveness program. That's because each month of paused payments under forbearance counted toward debt forgiveness for these borrowers. “The impact of this bill…would push hundreds of thousands of public service workers back into debt and require the government to charge tens of millions of borrowers for interest that has already been cancelled,” Pierce said. Around 268,660 public service workers who received debt cancellation from September 2022 through March 2023 through the Public Service Loan Forgiveness program would have $19.5 billion in debt put back in place as a result of the bill, according to a“If enacted, it will cause irreparable damage to an already severely broken student loan system,” Pierce said, “and undermine Americans’ trust in our government.” Ronda is a personal finance senior reporter for Yahoo Finance and attorney with experience in law, insurance, education, and government.
Please follow us on Google to support us United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Senate votes to repeal Biden student loan forgiveness; White House plans a vetoSenate approves bill to undo Biden's student loan debt forgiveness plan, sending measure to the president, who has promised to veto it
Read more »
Senate votes to repeal Biden student loan forgiveness; White House plans a vetoThe White House said it would veto the bill, and its plan on student loan debt forgiveness is stalled anyway, because of cases before the Supreme Court.
Read more »
Several Democrats sign on to overturn Biden's student loan relief planWhile progressives have pushed for student debt forgiveness, the measure is met with lukewarm support among moderate Democrats.
Read more »
Senate votes to repeal Biden student loan plan with Manchin, Tester, and Sinema supportA bill to repeal President Joe Biden's signature student loan forgiveness plan passed the Senate Thursday with Sens. Joe Manchin (D-WV), Jon Tester (D-MT), and Kyrsten Sinema (I-AZ) joining Republicans to pass the measure.
Read more »
Senate Votes to Block Biden’s Student-Debt Relief PlanThe Senate voted 52-46 to approve a Republican-led proposal to block President Biden’s hotly debated student-debt forgiveness plan, setting up an expected veto
Read more »
Senate votes to overturn Biden’s student loan relief programBiden has said he'll veto the measure, but his loan forgiveness program faces its true test at the Supreme Court, which is expected to rule on a challenge to the plan this month.
Read more »