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♪ alabama republican senator tommy tuberville is responding to a support group for military spouses that demanded he end his hold on military leadership promotions. the nonpartisan secured families initiative hand delivered a petition to tuberville with signatures of more than 500 active duty military spouses and called on him to end his bloc because they say ijeopardized e lives of servicers andsrupts their families. the petition said in part, quote, no matter yr political beliefs, you must age that service members and military families will not be used as political leverage. it's time to end this political showmanship and recommit to respect the service and sacrifice of those who pledge to
through what is known as income based repayment plans. you pay a percentage of your income at the moment, and that number obviously will change over the course of your life. they say that there were glitches involved with some of the private servicers who they deal with the help process these loans. that didn't properly credit people for the time that they were putting in, paying off these loans overtime. so what's gonna happen now is automatically, those who did qualify with this glitch corrected will receive that debt that they were owed. because they made payments overtime up to 20 to 25 years. now the president put out a statement after the department of education made this announcement, which speaks to some of the politics here. he really called out republicans for what he said was their hypocrisy in criticizing these kinds of steps that his administration is taken. when for instance they had seen some of the debt forgiven through ppp loans. remember those were the small business loans through the pandemic that many people took advantage of? so it's both a political issue, and an economic issue to this white house. >> certainly. as mike manley, as always my
because she's my favorite an sor -- an anchor on cnn news central. she has to sue you. the problem in this matter is it's not clear who has sitting. the supreme court grappled with this in oral argument. a bunch of states sued the bilden admbiden administration, but the loan service providers didn't. they could make this going away saying the wrong party is suing here. >> missouri is suing saying there are loan servicers in our state are wronged here. but they're not in it, it's state doing it on their behalf. the justices could decide to do their case. if there is standing there's a separation of powers argument. >> there's a straightforward congressional statute that says in the time of a national emergency, the secretary of education has the authority to amend loan spending or student loan programs, right, so the question was, president trump declared covid an emergency, and then president biden years later
borrowers on other programs to take advantage of. we have heard from the progressive lawmakers and debt relief advocate groups who have urged the administration to consider the use of the higher education act which is a law from the 1960s. it is unclear if the administration would go down that route, because it could have a complicated legal route as well, but in addition to preparing for the fact that it could be struck down, they are also preparing for possibility that they will be allowed to move forward with this proposal. they would be likely sending out the notice to the borrowers and the servicers ahead, and this is a plan that the administration anticipates could affect up to 40 million student borrowers. there have been 26 million applications submitted with 15 million approved. for the americans who have applied, they don't have to apply again if the program is
following all of this for us. thank you. top of a brand-new hour on "cnn newsroom." good to have you. i'm victor blackwell. >> i'll bianna golodryga. the supreme court just finished hearing oral arguments in two cases challenging president biden's student loan forgiveness plan. the decision could affect 40 million borrowers. the program, which would provide up to $20,000 of debt forgiveness has been on hold after a lower court blocked it back in november. >> conservatives challenging the program argue it will have widespread economic repercussions. the congressional budget office estimated it will cost $400 billion over time, but justice ketanji brown jackson argued one of the largest servicers of student loans, mohela in missouri, is not a government entity. >> in fact, isn't that really as you say the most important thing if economic injury is the point?
taking effect. now, the news is a setback, there is no doubt about it. but the administration's not taking no for an answer. white house press secretary kareen jean pierre just hours after that ruling urged americans to continue submitting their applications to the government. students can still submit their applications, and yes, they can be provided -- does not prevent us from reviewing these outlook asians repairing them for application to loan servicers. so, take note, the relief program has been halted. but, and this is an important but, the administration is doing everything possible to be prepared to forgive loans if and when the temporary block is lifted. we are going to continue to follow that story. we'll bring you any updates on it as they develop. and coming up on the second hour of amen, the gop agenda, finally revealed. if republicans take control congress, their plans include hurting you and our allies. we are going to explain. plus, ron desantis losing in
us. what's the message from the white house on this? >> the education department contacted the servicers and said not to contact borrowers to resume payments which would need to resume under the current moratorium and the speculation is president biden is going to extend that moratorium and while the white house has not made commitments to that that is what is expected. politically and just the economic environment in terms of that this is something that you might see why the presidents want to do that. americans hurting economically not just covid and because of high inflation and so there's also pressure from the president's own party to not only extend this moratorium but also to weigh in on student loan debt forgiveness and looking to the white house to see whether the president takes a move on
people who were stuck in properties that often are worthless now because they can't _ that often are worthless now because they can't get mortgages on those properties. they can't move, they can sell. — properties. they can't move, they can sell, they can't do anything. i'm can sell, they can't do anything. l'm not— can sell, they can't do anything. l'm not sure _ can sell, they can't do anything. i'm not sure this story is quite what — i'm not sure this story is quite what it— i'm not sure this story is quite what it seems because i'm very glad that michael goes in his letter that has been _ that michael goes in his letter that has been found and revealed by news i'iili'it has been found and revealed by news night and _ has been found and revealed by news night and being picked up in tomorrow's papers but he said there's— tomorrow's papers but he said there's going to be no government money, _ there's going to be no government money, they want the £4 million to come _ money, they want the £4 million to come from — money, they want the £4 million to come from property developers in the ghetto _ come from property developers in the ghetto put _ come from property developers in the ghetto put pressure on property developers. well, that doesn't sound very convincing to me. we will stick her finger— very convincing to me. we will stick her finger in— very convincing to me. we will stick herfinger in the very convincing to me. we will stick her finger in the wind and see what happens _ her finger in the wind and see what happens i— her finger in the wind and see what happens. i think they need to be much _ happens. i think they need to be much firmer or give much more help to these _ much firmer or give much more help to these people or force the property— to these people or force the property developers to pay or come up property developers to pay or come up with— property developers to pay or come up with some solution notjust property developers to pay or come up with some solution not just the cladding. — up with some solution not just the cladding, often these people have been hit _ cladding, often these people have been hit with huge servicers bills to try— been hit with huge servicers bills to try to— been hit with huge servicers bills to try to pay for more sprinkler systems— to try to pay for more sprinkler systems or— to try to pay for more sprinkler systems or whatever it might be, there's— systems or whatever it might be, there's been lots of knock on
motion that sussman paid an internet company to infiltrate servers at the white house and trump tower in order to connect president trump to a moscow bank. after he hired an executive quote come to access and maintain dedicated servicers for the executive white house as a arrangement that provided dn s. res. solution services to the dop. about then president trump damaging information and the former president responded to the report of continuous surveillance writing quote, the latest pleading from special counsel durham despite my campaign and presidency were spied by operatives paid by the hillary clinton campaign in effort to develop completely fabricated connection to russia. this is a investigation greater in magnitude than watergate and those involved in this spying
the most during the pandemic, right, with studies showing that from august 2020 to march of this year, i think nearly 18% of black homeowners fell behind on mortgage payments. is the bureau putting any extra protections in place for vulnerable communities? >> yeah, so there's two things we've done, we've set up a set of rules this summer, we released a set of rules which basically set the guidelines for servicers on how to treat consumers and give them more options in time. the second thing we're doing is targeted outreach to those communities of colors and low income communities most impacted. we know that, you know, those folks have not even recovered from the last crisis and that anyone, any unavoidable foreclosure is something we want to avoid here. the bureau is focused on this, doing outreach, set rules. we're going to be watching servicers closely. the bureau wasn't around the last time so there are people watching servicers and what they're doing. >> i appreciate the advice this morning and thanks for joining us. mark mccartel, thank you.