In the midst of pressure to eliminate student loans, a top federal aid official cites Biden
There's no doubt that the administration of President Joe Biden's staffers charged with overseeing the portfolio of student loans have their fair share of questions regarding debt forgiveness.
One of them stated that anyone are not allowed to send those inquiries to him since cancelling student loans isn't his responsibility.
The previous Tuesday Federal Student Aid (FSA) director Richard Cordray spoke at a gathering for college administrators of financial aid on the best ways to assist borrowers of student loans across the nation. One of the subjects discussed was forgiveness of student loans -- a topic that is on the forefront of many borrowers' mind, particularly since payments are scheduled to resume in February following what is expected to be a two-year hiatus in the midst of the epidemic.
One of them stated that anyone are not allowed to send those inquiries to him since cancelling student loans isn't his responsibility.
The previous Tuesday Federal Student Aid (FSA) director Richard Cordray spoke at a gathering for college administrators of financial aid on the best ways to assist borrowers of student loans across the nation. One of the subjects discussed was forgiveness of student loans -- a topic that is on the forefront of many borrowers' mind, particularly since payments are scheduled to resume in February following what is expected to be a two-year hiatus in the midst of the epidemic.
Cordray clarified, however that, while he's "deeply involved" in the return to repayment process and helping to facilitate targeted program for loan forgiveness, a broad program of student debt cancellation for all borrowers is not within His job descriptions.
"On general loan forgiveness, many people seem to have a great deal to say, but as the chief of FSA, I do not," Cordray declared. "Instead, I will simply say it is a decision for the White House to make, not for me.
He said he's continuing to supervise the cancellation of student loans for specific groups of borrowers, including the ones who are cheated by for-profit institutions and those with disabilities, as well as supervising the Education Department's latest revamp of its Public Service Loan Forgiveness (PSLF) program, which is a way to forgive students' debts for public servants, such as teachers for a period of ten years after eligible payments.
In relation to the repayment return date of January 1, Cordray stated that FSA's job will be in the form of an "communications campaign" to ensure that borrowers have the necessary information needed to start repaying their debts.
"We recognize that the stakes are extremely high as we face this challenge," Cordray declared.
Cordray's position in the FSA could be temporary. The Wall Street Journal first announced on Tuesday that he was being considered for the position of the FSA's chief bank regulator, however Cordray's role in the White House has yet to decide on a final position and Cordray hasn't commented on the matter.
Biden has not yet announced whether he'll forgive student loans in general
As Cordray stated that resolving student debt is the decision of Biden as well as 43 million Federal student loan customers are still waiting with bated breath what Biden's decision will be.
In his presidential run for president, Biden stated that he'd accept a student debt cancellation of $10,000. In the case of cancellation of a larger amount, such as Massachusetts Senator. Elizabeth Warren's plan of $50,000 per borrower Biden was not sure whether he was legally entitled to that authority, so he pressed for the Education and Justice Departments at the beginning of his presidency to write memos on his power to cancel student loans in general through executive actions.
While Biden's administration maintains they are still looking into the authority, documents leaked last month revealed that the Education Department gave Biden the instruction in April. it could have been in place in February.
A lot of progressive legislators are tired and would like Biden to offer relief to the millions of borrowers prior to when payments begin back up in two months.
"On general loan forgiveness, many people seem to have a great deal to say, but as the chief of FSA, I do not," Cordray declared. "Instead, I will simply say it is a decision for the White House to make, not for me.
He said he's continuing to supervise the cancellation of student loans for specific groups of borrowers, including the ones who are cheated by for-profit institutions and those with disabilities, as well as supervising the Education Department's latest revamp of its Public Service Loan Forgiveness (PSLF) program, which is a way to forgive students' debts for public servants, such as teachers for a period of ten years after eligible payments.
In relation to the repayment return date of January 1, Cordray stated that FSA's job will be in the form of an "communications campaign" to ensure that borrowers have the necessary information needed to start repaying their debts.
"We recognize that the stakes are extremely high as we face this challenge," Cordray declared.
Cordray's position in the FSA could be temporary. The Wall Street Journal first announced on Tuesday that he was being considered for the position of the FSA's chief bank regulator, however Cordray's role in the White House has yet to decide on a final position and Cordray hasn't commented on the matter.
Biden has not yet announced whether he'll forgive student loans in general
As Cordray stated that resolving student debt is the decision of Biden as well as 43 million Federal student loan customers are still waiting with bated breath what Biden's decision will be.
In his presidential run for president, Biden stated that he'd accept a student debt cancellation of $10,000. In the case of cancellation of a larger amount, such as Massachusetts Senator. Elizabeth Warren's plan of $50,000 per borrower Biden was not sure whether he was legally entitled to that authority, so he pressed for the Education and Justice Departments at the beginning of his presidency to write memos on his power to cancel student loans in general through executive actions.
While Biden's administration maintains they are still looking into the authority, documents leaked last month revealed that the Education Department gave Biden the instruction in April. it could have been in place in February.
A lot of progressive legislators are tired and would like Biden to offer relief to the millions of borrowers prior to when payments begin back up in two months.
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