If you have a federal student loan , you'll be hearing from President Joe Biden soon.
The Biden administration will email roughly 30 million loanees this week to let them know about possible student debt relief they may be eligible for as the administration seeks to overcome courtroom challenges to its myriad cancellation programs.
“By providing more information to borrowers on how they can take advantage of our upcoming debt relief programs, borrowers will be prepared to benefit swiftly once the rules are final," Biden said in a prepared statement. "Despite attempts led by Republican elected officials to block our efforts, we won’t stop fighting to provide relief to student loan borrowers, fix the broken student loan system, and help borrowers get out from under the burden of student debt."
Biden has previously sent emails to loanees letting them know he has canceled their debt, though many of his proposals are tied up in court and may be overruled before becoming finalized. The administration says it has canceled student loans for 5 million people so far at a cost to taxpayers of $168 billion.
"From day one of my administration, I promised to fight to ensure higher education is a ticket to the middle class, not a barrier to opportunity," the president said. "I will never stop working to make higher education affordable and to make sure our administration delivers for the American people.”
Student loans have been one of Biden's most high-profile, aggressive, and controversial policy areas since taking office three years ago. His initial plan would have cost taxpayers at least $400 billion but was ruled illegal by the Supreme Court last summer. Undaunted, Biden has since rolled out additional proposals that would be similarly pricey if fully implemented.
Biden's Department of Education says it will email every person with a federal student loan and let them know they have until Aug. 30 opt out "if they do not want this relief."
"The rules that would provide this relief are not yet finalized, and the email does not guarantee specific borrowers will be eligible," the department added in a press release.
The rules the administration hopes to finalize this fall would expand its cancellation efforts from 5 million to 30 million loanees.
“Today, the Biden-Harris administration takes another step forward in our drive to deliver student debt relief to borrowers who’ve been failed by a broken system,” Education Secretary Miguel Cardona said. “These latest steps will mark the next milestone in our efforts to help millions of borrowers who’ve been buried under a mountain of student loan interest."
The draft rules the administration proposed in April would transfer debts for people who owe more than their initial balance, those who have had loans for more than 20 years, those who qualify for loan cancelation but have not applied, and those who enrolled in what the administration deems "low-financial value programs."
If approved, loan cancellation would happen automatically and there would not be an application process borrowers needed to go through.
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Republicans have bristled at the initiatives, and GOP-led states have filed multiple successful lawsuits seeking to block Biden's programs.
"Joe Biden is the real threat to democracy, and that is proven by his administration's unconstitutional attempt to override the United States Supreme Court and force taxpayers to subsidize free college for other people," Trump campaign spokeswoman Karoline Leavitt said in June. "Even Nancy Pelosi said the president has no authority to cancel student loans, but the Biden administration is so desperate for votes, they are willing to break the law to essentially buy them."
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