16 million Americans will be approved for student loan debt relief by this week

Student loan default
The delinquency rate for student loans exceeds that of all other types of debt. More than 1 in 4 student loan borrowers have recently missed a payment.
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BASIC POINTS

  • Biden noted that the student loan forgiveness program is currently on hold by the 8th Circuit
  • It remains unclear what the 8th Circuit will ultimately decide on the case
  • Delay in decision could mean student loan borrowers have to resume payments in January

Millions of Americans who applied for student loan debt relief will be approved by the end of the week, President Joe Biden said.

Speaking at Central New Mexico Community College on Thursday, Biden said the Department of Education will have approved at least 16 million requests from student loan borrowers who applied through the online form at studentaid.gov.

“By the end of this week, the Department of Education will have approved the applications of 16 million Americans and sent the necessary documents to student loan servicers — the final step before 16 million Americans can pay off their loans,” Biden said. in his remarks. , The Hill reported.

The president also said Americans “should see relief in the next few days,” but noted that the program was put on hold by the 8th U.S. Circuit Court of Appeals on Oct. 21. The temporary suspension is in response to a lawsuit filed by six Republican-led states that argued that student loan forgiveness would hurt their states’ tax revenue.

Biden previously predicted that his administration would win the case and that student loan checks would arrive in the coming weeks. However, it remains unclear what the 8th Circuit will ultimately decide in the case.

The delay in the decision could mean that student loan borrowers will likely have to resume their payments in January, according to Business Insider.

Almost 26 million Americans have applied for student loan relief as of Thursday, according to Biden. The administration opened the application on October 14. Borrowers will have until December 31, 2023 to apply.

If the plan moves forward, single student loan borrowers who made less than $125,000 and married couples or heads of households who earned less than $250,000 in 2020 and 2021 could see up to $10,000 off their federal student loan debt .

Eligible borrowers who also received a federal Pell grant could receive up to $20,000 in student loans, according to CNN. Student loan borrowers can log into their Federal Student Aid account to check if they have been awarded Pell Grants.

FILE PHOTO - US President Biden delivers remarks on the student loan debt relief plan at the White House in Washington

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