Not All Senate Democrats are Convinced Biden Should Forgive Student Loan Debt
Progressive Democrat Sen. Elizabeth Warren (D-Mass.) has been leading the effort to have President Joe Biden use his existing authority to cancel $50,000 in student debt, but not all her Democrat colleagues are in agreement with the idea.
While many Senate Democrats agree with Biden canceling student loan debt, there are other senators who question how it is fair to the many who have paid off their debt already or ask how the federal government will pay for such a decision.
The Biden administration had paused payment requirements for those with student loans.
New rules released regarding loan forbearance, including mortgages and student loans.
The COVID-19 pandemic has had a crippling effect on the economy for individuals and businesses. With businesses closed and jobs lost, many faced the challenge of making loan payments.
Although the federal government’s loan forbearance program in 2020 helped, that ended in January this year. However, a new set of guidelines has been put in place, said Cindy Clampet, Oklahoma State University Extension family resource management assistant specialist.
“There are new rules concerning loan forbearance that will give people who have federally backed mortgages and student loans some additional relief,” Clampet said.
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Company Profile
SLM Corp is the largest student lender in the country. It makes and holds student loans through the guaranteed Federal Family Education Loan Program as well as through private channels. It also engages in debt-management operations, including accounts receivable and collections services, and runs college savings programs.
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Navient, one of the largest student loan servicers, has been accused of misleading borrowers.
Remondi said the allegations are untrue and not necessarily based on facts.
Navient CEO John Remondi was at Sen. Elizabeth Warren of Massachusetts first hearing on student debt relief. Warren told Remondi that he should be fired for misleading student loan borrowers, but that wasn t all. The federal government should absolutely fire Navient, and because this happened under your leadership, Navient should fire you, Warren told Remondi during the hearing.
Warren, as the chair of the Senate Subcommittee on Economic Policy, called 11 witnesses to testify at the hearing to discuss the impact of student debt on borrowers, racial justice, and the economy.
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