Why the student loan forgiveness application was not ready in August: ed. Second.
- A student loan forgiveness application is expected to go live in early October.
- Dry. Miguel Cardona said he wasn’t ready in August because Biden had to give the go-ahead.
- “We couldn’t have created an app if there hadn’t been a policy that the president would have put forward,” he said.
President Joe Biden’s Education Secretary has an answer for why a student loan forgiveness application wasn’t ready when the relief was announced.
In late August, Biden announced up to $20,000 in debt forgiveness for federal borrowers earning less than $125,000 a year. It was a long-awaited announcement, and the key question many borrowers wanted answered was how exactly they would get the relief and when. The Ministry of Education said eight million borrowers will automatically get debt relief because their income information is readily available, but the majority of borrowers will have to apply through an online form which will be posted online. beginning of October.
As to why the bid couldn’t be ready immediately, Education Secretary Miguel Cardona told NPR in a recent interview that the department needs an official green light from Biden before moving forward with implementation.
“It was really important for the president to communicate on this subject which was extremely important to do,” Cardona said. “And we couldn’t create an app if it hadn’t been a policy that the president would have put forward. Right?”
Cardona also assured borrowers that “we’re going to simplify the process. We’re going to make the process quick and we recognize that user experience is important. Look, you know, when you think about loan processing, that’s not something thing that makes people think, ‘Oh, easy process.’ We’re going to try to do our best to change that perception, make it simple so people can get on with their lives and not get bogged down trying to take advantage of that.”
Prior to the announcement, advocates and lawmakers raised concerns about the effectiveness of the relief’s implementation. Democrats and Republicans sent letters to Cardona over the summer asking for information on how quickly the debt cancellation would be carried out, and advocates warned against enforcing a process application because of its potential to exclude eligible borrowers from relief.
Even student loan companies raised concerns about the department’s lack of guidance, saying they needed additional information to communicate to borrowers about the process of applying for and receiving relief. But, as Cardona told NPR, this is the first time a student loan forgiveness has been announced on such a large scale, and there are “a lot of moving parts” to consider over the next few years. month.
“Just as there was no manual for reopening schools, there was no manual for how to [cancel student loans]. But we’re going to do it, and we’re going to do it better than people expect,” Cardona said.