U.S. Secretary of Education Miguel Cardona told NPR during a back-to-school bus tour stop in Pittsburgh.
Joshua Roberts/Getty Images
hide caption
toggle caption
Joshua Roberts/Getty Images
U.S. Secretary of Education Miguel Cardona told NPR during a back-to-school bus tour stop in Pittsburgh.
Joshua Roberts/Getty Images
President Biden’s student loan bailout plan could wipe out the debt of an estimated 20 million borrowers entirely. Except for the approximately 8 million borrowers whose income information has already been recorded with the U.S. Department of Education, everyone else must complete an application proving their income before they can write off their debt. , emphasis on “could be”.
Millions of borrowers eagerly await the mystery application due in October. The wait caused questions and confusion from readers and listeners. This week, NPR had the opportunity to submit some of these questions to U.S. Secretary of Education Miguel Cardona during the Pittsburgh stop on the back-to-school bus tour.
When to Expect a Student Loan Relief Application
First, recall the highlights of Biden’s plan. Borrowers earning less than $125,000 a year, or couples earning less than $250,000 a year, are eligible to cancel federal student loans up to $10,000. Because it was so low, you are eligible for debt forgiveness of up to $20,000. Also, even if eligible, most borrowers will need to complete an application to prove it.
NPR: Applications are due in early October. Can you give the borrower a realistic sense of how long to wait after they submit their application before they can expect the debt to be written off?
Cardona: See, this is unprecedented. Just like there was no playbook for reopening schools, there was no playbook anywhere for how to reopen. [cancel student loans]But we’re going to do it, and we’re going to do better than people expect.
We want to make sure it’s an easy process. It’s an easy process for those who qualify to get eligible loan relief.
I’m not going to share my timeline right now, but [by] January 1st when [loan repayment resumes], everything should be set. So, between October and when loans resume, we know that all borrowers not only need the information, they must complete the process.
NPR: We’ve heard that many borrowers have been phished between the announcement of President Biden and the release of the application in October.department is going or can It does anything – about the profiteers out there?
Cardona: We know that even in the field of education there are many bad guys.that’s why we’ve been chasing [predatory for-profit colleges like] Corinthians, ITT, and what we tell people is, “Go to our website, studentaid.gov/debtrelief, for information. Please do not open any emails from .Please do not.”
our [Federal Student Aid] The team is working hard to make the process simple and clear and directing people to visit our website. can be sent.
But what you say is absolutely correct. There are bad actors out there. What we want to do is make sure that we take that into consideration when planning how to deploy it.
NPR: why are you announcing this [debt relief plan] Previous Do you have an application?
Cardona: It is very important for the President to communicate on this topic and this is very important. And if it wasn’t for the president’s policy, we couldn’t have created the application. right?
That being said, I’m going to make the process easier. We want the process to be fast, and we know that user experience is important.
You see, when people think about loan processing, it doesn’t make people think, “Oh, it’s an easy process.” We’re going to do our best to change that perception and make it simple so that people can move on with their lives without getting stuck trying to take advantage of this.
Deadline for Civil Service Loan Forgiveness Approaching
At this point in the interview, I jumped on the Public Service Loan Forgiveness (PSLF) Waiver. The Biden administration last year used the exemption to overhaul a troubled program to make it easier for borrowers working in the public service to qualify for debt relief after his decade. But this limited exemption is set to expire at the end of October, raising concerns that thousands of eligible borrowers won’t make it in time.
In fact, this week’s Cardona bus tour included a workshop designed to assist teachers through the PSLF application process.
NPR: Do you think that PSLF waiver can be extended, or should work be done assuming it is completed on November 1st?
Cardona: See, public service loan forgiveness – talk about fixing a broken system. He was rejected by 98% of those who applied. We are talking about teachers, nurses, and people who are putting forth their strength during the pandemic. Offered a one-year exemption for creating a wide net.
That waiver expires on October 31st, but we are working very hard to make that information public. So if you are unsure, please apply. It’s better to write your name down there and find out later that you may not have qualified, than not to sign up if you qualify.
So, PSLF.gov. More than 175,000 people have benefited. Over $10 billion in loan relief for those who choose a career in public service. We want to make sure we care for them, and we have their backs just like they care for their communities.
Responding to Borrowers Concerned About the Unfair Management of Past Student Support Programs
The final question pointed to multiple NPR investigations into how the Department of Education and its loan services companies grossly mismanaged previous federal student assistance programs.
Many borrowers hope the government can successfully implement the latest debt relief plan, but are skeptical and even cynical about the Education Department’s ability to pull it off.
NPR: What would you say now to a borrower who may be expecting too much but is worried they are expecting too much because they don’t believe the system will work?
Cardona: Look, I realize how many moving parts there are here. And we’ve been thinking about this for months. We work with loan servicers. We keep in touch with them every day. We have daily update meetings. And we are making sure that this process unfolds smoothly. And that’s the expectation.the president campaigned with his $10,000 [of relief per borrower]. [He’s also] Offer $20,000 to eligible Pells.
Now we have to deliver.
(This interview has been lightly edited for clarity.)