Biden predicts student loan borrowers will begin receiving relief within weeks, despite court opposition



CNN

President Joe Biden announced Thursday that student loan borrowers will begin receiving relief (which is currently being contested by a court) within weeks, ensuring that his administration will win the challenge.

“We will win that case. I think you’re going to see those checks come out in the next couple of weeks,” Biden told Nexstar’s Washington correspondent Reshad Hudson.

The Biden administration began accepting applications for student debt forgiveness on Oct. 14, and officials have said it could take weeks to process and provide relief.

Borrowers will not receive an actual check. Instead, they will see a $20,000 reduction in their student loan balances.

The Department of Education has told borrowers who are eligible for automatic debt discharge, without filing an application, not to expect the debt to be canceled before November 14.

A federal appeals court last week placed a temporary stay on the administration’s student loan forgiveness program, preventing the government from canceling loans covered under the new policy, while the court hears a challenge brought by six Republican-led states. The Biden administration is also facing lawsuits from Arizona Attorney General Mark Brnovich and conservative groups such as the Job Creators Network Foundation and the Cato Institute.

Biden’s student loan forgiveness program, first announced in August, aims to pay off millions in federal student loan debt after a nearly three-year pause in federal student loan payments in January due to the pandemic.

The president made his comments in an interview with local television station Nexstar Media during a visit to Syracuse, New York, to deliver a new deal on semiconductor manufacturing. With the midterm elections less than two weeks away, Biden took questions about the economy, his message to voters and his student debt relief program.