New Student Loan Forgiveness Bill: With over 43 million Americans grappling with a staggering $1.7 trillion in federal and private student loans, the student loan landscape in the United States is more challenging than ever.
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There has been a shift in mainstream attitudes regarding student debt forgiveness due to this financial burden, which affects one in five adults across the country.
Biden Approves $6.1 Billion Student Loan Relief for Art Institute Enrollees
The president announced on Wednesday that more than $6.1 billion in student loan debt relief has been approved for nearly 317,000 borrowers enrolled at any Art Institute campus from January 2004 to October 2017.
Last September, the Art Institutes, a private-for-profit system of art schools in the United States, closed due to legal issues.
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Education Department found that The Art Institutes and its parent company, Education Management Corporation, misled prospective students about employment rates, salaries, and career services.
You should take advantage of this opportunity since nearly 93 percent of student debt is federal.
President Trump’s pandemic-era relief measures have brought both relief and complexity to borrowers in addition to President Biden’s focus on student debt.
The Biden administration announced that more than 300,000 borrowers will receive $6.1 billion in automatic discharges, plus other relief, due to attendance at the Art Institutes. https://t.co/bOC598hxTW
— Adam S. Minsky (@AdamSMinsky) May 1, 2024
With this measure, the Biden administration has provided nearly $160 billion in student loan debt relief.
The White House has been pushed to address student loan debt by progressive voters, whom Biden, a Democrat, hopes will vote for him against Trump in November.
Biden Cancels $6.1 Billion in Debt for Former Art Institute Students – The announcement covers 317,000 former students and marks another step in the administration’s student loan relief efforts. via @nytimes https://t.co/pZKzGR7I5k
— Olav Mitchell Underdal (@omunderdal) May 1, 2024
Last year, Biden pledged to explore other debt relief avenues after the Supreme Court blocked his broader plan to cancel $430 billion in student loan debt.
A series of application processes and deadlines must be navigated by borrowers seeking relief under programs like IDR Account Adjustment or Public Service Loan Forgiveness.
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Under income-driven repayment plans, for example, the IDR Account Adjustment allows loan forgiveness to be accelerated.
Several borrowers will qualify automatically, while others may need to submit additional applications or switch to an IDR plan before April 30.
In a similar way, the Public Service Loan Forgiveness program offers borrowers in public service or nonprofit employment expedited loan forgiveness.
For applicants seeking relief under this program, changes to the application system, including a temporary shutdown, may complicate matters.
Biden’s student loan forgiveness plan offers hope to many borrowers, despite its legal challenges.
While navigating these evolving relief programs, Thompson recommends that borrowers remain informed and proactive.
Approximately 43.4 million students had $1.63 trillion in outstanding loans as of June 2023, according to the Federal Student Aid website.
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