Earlier this month, Pres. Joseph Biden officially commenced the student debt cancellation program. He declared that eight million people had already filled out the application for loan relief over the launch week. Individuals are eligible for up to $10,000 debt relief, only if they make less than $125,000 a year as an individual, or a household with less than $250,000 annual income. (1)
Massachusetts Sen. Elizabeth Warren and Rep. Ayanna Pressley have been strong proponents of the student debt cancellation program. Last week, both representatives traveled across different cities in Massachusetts to raise awareness about Pres. Biden’s initiative and encourage individuals to apply for the debt forgiveness program. The representatives visited Boston, Worcester, Brockton and Springfield, to help individuals with the application process. (2)
Rep. Pressley and Sen. Warren joined community members at different locations and colleges, including UMass Chan Medical School and the Grove Hall Branch of Boston Public Library, as part of the Student Debt Cancellation Tour. Alongside students and borrowers, elected officials and lawyers joined the representatives at the community events. “Senator Warren and I are committed to spreading the word and encouraging folks across Massachusetts to access this essential relief,” said Pressley. (5)
Pressley emphasized the debt relief program, saying that it would save lives. She also noted that the application takes a few minutes, and strongly encouraged people to apply. Warren stated that almost 800,000 residents of Massachusetts could apply for the debt relief program.
Pressley claimed that debt forgiveness is a matter of racial and gender justice, in addition to economic fairness. She claimed that women bear a disproportionate amount of the debt, and that people of color were excluded from past federal programs that could have helped them accumulate money for future generations. (3)
Recent updates highlight that the federal appeals court blocked the Biden administration from disbursing any relief amount. Around 22 million people have already applied for debt relief, and a court’s block can cause unprecedented delays in the disbursement process. The court restriction is due to some lawsuits filed against the loan relief program, one of which is led six Republican state attorneys general. (4)
The attorneys general from Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina filed a lawsuit in the federal court, claiming the program overpowers the president’s executive power. A federal judge rejected the lawsuit on the basis that it lacked a solid legal foundation. However, a day after the federal court judge’s decision, the U.S. Court of Appeals for the Eighth Circuit accepted the case and granted a temporary hold on the program. This transient hold stops the fund disbursement process for now. The readers can anticipate further updates on the court’s decision in coming weeks. (4)
Persis Yu, Deputy Executive Director of the Student Borrower Protection Center, applauded Pressley and Warren for their work with the student debt cancellation tour and their engagement of individuals at the community level. The CEO of the Black Economic Council of Massachusetts said that the program would benefit many Black and Brown folks, as they will have more financial freedom and it will possibly reduce the racial wealth gap in the Commonwealth. (5)
If you qualify for the student debt relief program, please visit studentaid.gov to apply for student debt relief. Public servants could apply for a Public Service Loan Forgiveness (PSLF) waiver by Oct. 31. UMass Boston students can stop at the One Stop in the Campus Center for all financial aid and application-related questions. The Department of Education has warned students of potential scams and has recommended following the due process through the Federal Student Aid website.
Sources:
1. https://www.bostonglobe.com/2022/10/17/nation/education-department-launches-application-site-biden-student-debt-cancelation/
2. https://www.wbur.org/radioboston/2022/10/19/congresswoman-ayanna-pressley-student-loans-marijuana-pardons
3. https://www.boston.com/news/politics/2022/10/19/pressley-warren-student-debt-relief-tour/
4. https://www.bostonglobe.com/2022/10/27/nation/after-court-paused-bidens-student-loan-cancellation-program-heres-what-you-should-know/
5. https://pressley.house.gov/2022/10/26/icymi-rep-pressley-and-sen-warren-launch-student-debt-cancellation-tour-across-massachusetts/