The Biden admin will begin notifying approved student loan applicants
Over the weekend, student loan borrowers who applied for President Joe Biden’s one-time student loan received emails that their applications were approved. But their loans won’t be forgiven anytime soon.
US Secretary of Education Miguel Cardona confirmed that the emails were sent to approved applicants. He also said that those who have applied and have not yet received an email should not worry; It takes time to notify millions of people and the messages are sent out in batches.
While the emails will be welcome notifications for millions of borrowers, the news also noted that the relief due to legal challenges will not be immediately reflected in applicants’ bank accounts.
“Unfortunately, a number of lawsuits have been filed challenging the program, which are currently preventing us from paying off your debt,” the email reads. “We firmly believe that the lawsuits are unfounded.”
Biden’s widely publicized loan foreclosure plan has been blocked by two federal courts. On Thursday, the Justice Department asked the Supreme Court to review a lower court’s decision. The Supreme Court will say by Wednesday, November 23 whether it will hear this case.
“Your application is complete and approved, and we will pay your approved debt if we prevail in court,” the email reads.
The lawsuits have created a web of confusion around the cancellation program. When Biden first announced widespread forgiveness in August, the administration encouraged borrowers to apply for relief by mid-November. That would give them ample time to process applications and relief until federal loan payments resume in January.
But the legal challenges keep pushing back the implementation date. At the moment it is not clear when relief will come into force or if it will be allowed to continue at all.
Borrowers are now asking Biden to at least extend the payment pause again until the lawsuits are settled. Other borrowers are confused about whether to cancel or hold requests for reimbursements of payments made during the pandemic.
The White House previously announced that 26 million people had asked for forgiveness before the request was dropped due to a court ruling. At least 16 million applications have been approved.
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