A Loan Student reimbursement plan is on his last legs. A group of democratic legislators launches a Marie’s hail to revive it.
On Tuesday, the Democratic senses Jeff Merkley and Tim Kaine led more than a dozen of their colleagues in the introduction of legislation – considered for the first time by Business Insider – to strengthen and extend the reimbursement plan for the safeguarding of students. Presented by former president Joe Biden without congresses in 2023, the safeguard plan was intended to grant 8 million cheaper borrowers registered monthly payments with a shorter calendar for the alleviation of the debt, but he was blocked in court since July following legal proceedings led by the GOP.
While the final fate of the safeguard plan rests in court, republican legislators seek to eliminate the plan in their bill on the budget, arguing that the plan is an excess of the authority of the Secretary of Education. This is why Merkley and Kaine set up the savings opportunity and the affordable reimbursement plan, or SOAR’s plan, which would codify and extend some of its provisions.
“As the first of my family to go to the university, I know the obstacles to which too many students face access to higher education. Revenue -oriented reimbursement programs are an essential tool to combat the debt crisis for America students,” Merkley in BI told Bi. “While the Republicans threaten to shave the safeguard plan and other affordable reimbursement options for students, we must retaliate by guaranteeing that students have a well -necessary path for the forgiveness of the loan, now and in the future.”
The SOAR plan has proposed a number of modifications to the existing backup plan. It would guarantee monthly payments of $ 0 for those who earn less than 250% of the poverty line – compared to 225% – and ensure that all student housing borrowers, including those with parents and federal loans, can register for the program.
The bill also clarifies the language surrounding the forgiveness of loans through the plan, claiming that the undergraduate borrowers who attended programs for less than two years would fill the reimbursement in 10 years on the SOAR level. The backup plan currently allows the loan of the loan for borrowers with original sales of $ 12,000 or less that have made up to 10 years of payments.
With a republican majority in the House and the Senate, the legislation of democrats is unlikely to progress.
Republican legislators should soon reveal their budget proposal. A memo compiled by the Budget Committee of the Chamber, consulted by BI in January, proposed the repeal of the safeguard plan and the limitation of eligibility for other debt relief programs, such as the forgiveness of the loan of the public service.
The Ministry of Education also indicated that it would not relaunch the safeguard plan if it prevailed before the court; The ministry’s acting subsectary, James Bergeron, told BI in February following a court decision that kept a safeguard blocked that “the Biden administration has brought the students induced in error by believing that their debt would simply disappear, although the law is clear that a bailout financed by taxpayers is a blatant exaggeration.”
Some student loans have already told Bi that the safeguard challenges maintained them in the financial limbo. Natasha Stephens, who voted for Trump, said that she was not asking for forgiveness from the loan; It is just disappointed that the administration does not favor more support for borrowers.
“I think that has helped many people,” she said, referring to the safeguard plan, “and it’s really heartbreaking that it ends with nothing.”
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