White House: 26 million people have applied for or are eligible for student debt relief under the Biden plan

January 27 (UPI) — The White House said Friday that 26 million people have either applied for student loan debt forgiveness or have already provided enough information to be eligible, under President Joe Biden’s plan.

The Biden administration said 16 million borrower applications were fully approved and sent to lenders before a slew of lawsuits forced the Department of Education to suspend applications in November.

“Millions of these borrowers could be taking advantage of this relief today were it not for the lawsuits brought by elected officials in some of their own states,” the White House said.

Biden announced the plan in August, seeking to provide up to $20,000 in debt relief for borrowers making less than $125,000 a year, protecting borrowers most at risk of delinquency or default due to the COVID-19 pandemic.

The White House said Friday it believes more than 40 million borrowers will qualify for its debt relief program, with almost 90% of the bailout benefits going to out-of-school borrowers making less than $75,000 a year.

The Biden administration released the numbers as the Supreme Court prepares to hear oral arguments in February in two cases brought by Republican states challenging Biden’s debt relief plan under the HEROES Act of 2003.

Republicans and other conservative groups said the White House exceeded its authority by using HEROES to write off this debt, while the White House argued in a statement earlier this month that it was “convenient” within its authority.

Biden, meanwhile, continued to pause student loan repayments in November until June. These payments will resume 60 days after the end of the pause, which is expected to occur on June 30, or after the resolution of the litigation.

Earlier this month, the Biden administration also unveiled a plan that provides a “safety net” for millions of student loan borrowers, including more affordable repayment terms and cuts in federal loan repayments.

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