{"id":581524,"date":"2023-07-06T01:00:16","date_gmt":"2023-07-05T22:00:16","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/student-debt-white-house-faces-backlash-for-restarting-interest-on-loans\/"},"modified":"2023-07-06T01:00:16","modified_gmt":"2023-07-05T22:00:16","slug":"student-debt-white-house-faces-backlash-for-restarting-interest-on-loans","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/student-debt-white-house-faces-backlash-for-restarting-interest-on-loans\/","title":{"rendered":"#Student debt: White House faces backlash for restarting interest on loans"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a33b1401f7cd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a33b1401f7cd\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/student-debt-white-house-faces-backlash-for-restarting-interest-on-loans\/#Education_coverage_from_The_Hill\" >Education coverage from The Hill<\/a><\/li><\/ul><\/nav><\/div>\n<div>\n<p>The White House is facing backlash about its decision to turn back on interest for student loans as part of its \u201con-ramp\u201d repayment program, which progressives and advocates argue isn\u2019t enough to help struggling borrowers.<\/p>\n<p>The program aims to help those who can\u2019t repay their loans when payments resume this fall by removing the threat of default or harm to credit ratings for 12 months if bills aren\u2019t paid. It\u2019s one of the only routes the Biden administration argues it could have taken since ending the payment pause that ultimately became part of the debt limit deal President Biden struck with Speaker Kevin McCarthy (R-Calif.).<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>The so-called \u201cPlan B\u201d of providing student loan relief was laid out late last week hours after the Supreme Court struck down a program the White House attempted to implement that would have forgiven up to $20,000 in student loans dependent upon earnings. The alternative route aims to help borrowers make their journey to repayments easier.<\/p>\n<p>But the president\u2019s plan has failed to satisfy stakeholders and some Democratic lawmakers who are panning a plan that would turn\u00a0 interest on for certain student loans for the first time since March 2020.\u00a0<\/p>\n<p>\u201cThere is already so much confusion,\u201d Natalie Abrams at Student Debt Crisis Center (SDCC) said.<\/p>\n<hr class=\"wp-block-separator has-alpha-channel-opacity\">\n<h3><span class=\"ez-toc-section\" id=\"Education_coverage_from_The_Hill\"><\/span>Education coverage from The Hill<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<hr class=\"wp-block-separator has-alpha-channel-opacity\">Borrowers are set to start repaying their student loans in October after interest begins accruing again in September. The president said that the on ramp program would at least help alleviate some pressure on borrowers by not having their debt sent to collections or have their credit scores impacted from October 2023 to September 2024.<\/p>\n<p>The White House believes it has come up with the best option they could give borrowers, considering the debt agreement, which was signed into law in June.<\/p>\n<p>\u201cThe law requires us to end the payment pause this summer. We believe in the rule of law, and plan to follow it,\u201d a White House official told The Hill.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p>The official added that the on ramp program aims \u201cto protect the most vulnerable borrowers\u201d and is \u201cthe most generous income-driven repayment plan ever.\u201d<\/p>\n<div class=\"nlp-ignore-block article-content rich-text\">\n<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/apple.news\/T7zM9N_S2SDKHQ2PypEf8AQ?subscribe=1\">Sign up for the latest from The Hill here<\/a>\n<\/div>\n<p>But the White House explanation has not been enough for advocates and even some Democrats.<\/p>\n<p>\u201cPeople should not be incurring interest during this 12-month on-ramp period. So, I highly urge the administration to consider suspending those interest payments,\u201d Rep. Alexandria Ocasio-Cortez (D-N.Y.) said.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\"><\/aside>\n<p>Some note that ending the pause and restarting interest is part of the deal negotiated with McCarthy.<\/p>\n<p>\u201cThe student loan pause suspended both monthly payments and interest for many borrowers since March of 2020. The debt ceiling deal negotiated by the White House spells an end to the pause,\u201d said Debra Dixon, former chief of staff at the Office of Planning, Evaluation and Policy Development at the Education Department under former President Obama.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1400\" height=\"787\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/06\/ocasiocortezalexandria_060623tc01_w.jpg?w=900\" alt=\"Rep. Alexandria Ocasio-Cortez (D-N.Y.)\" class=\"wp-image-4037514\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/06\/ocasiocortezalexandria_060623tc01_w.jpg 1400w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/06\/ocasiocortezalexandria_060623tc01_w.jpg?resize=160,90 160w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/06\/ocasiocortezalexandria_060623tc01_w.jpg?resize=300,169 300w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/06\/ocasiocortezalexandria_060623tc01_w.jpg?resize=768,432 768w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/06\/ocasiocortezalexandria_060623tc01_w.jpg?resize=1280,720 1280w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/06\/ocasiocortezalexandria_060623tc01_w.jpg?resize=645,363 645w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/06\/ocasiocortezalexandria_060623tc01_w.jpg?resize=320,180 320w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/06\/ocasiocortezalexandria_060623tc01_w.jpg?resize=256,144 256w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/06\/ocasiocortezalexandria_060623tc01_w.jpg?resize=512,288 512w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/06\/ocasiocortezalexandria_060623tc01_w.jpg?resize=640,360 640w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/06\/ocasiocortezalexandria_060623tc01_w.jpg?resize=876,492 876w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/06\/ocasiocortezalexandria_060623tc01_w.jpg?resize=960,540 960w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/06\/ocasiocortezalexandria_060623tc01_w.jpg?resize=50,28 50w\" sizes=\"auto, (max-width: 899px) 100vw, 876px\"><\/figure>\n<p class=\"has-small-font-size\"><em>Rep. Alexandria Ocasio-Cortez (D-N.Y.) walks up the Capitol steps on Tuesday, June 6, 2023.<\/em> (Tierney L. Cross)<\/p>\n<aside class=\"ad-unit ad-unit--mr4_ab\"><\/aside>\n<p>She said the latest program softens the impact for borrowers who haven\u2019t made a payment or accrued interest in the past three years, noting that was the best option the administration had after its first attempt was struck down.<\/p>\n<p>\u201cThis softens the monthly payment part of the pause. If interest were also to be suspended during the grace period, then both elements of the pause would be back in place as if an end had never been negotiated. Softening the adjustment for borrowers as payments resume is the best the administration could do,\u201d said Dixon, a principal at Ferox Strategies.<\/p>\n<p>White House officials on Friday made sure to stress that the on-ramp action is not an additional pause extension after the Biden administration has been criticized by Republicans for continuing to extend the repayment pause until he struck the deal limit deal this spring.<\/p>\n<aside class=\"ad-unit ad-unit--mr5_ab\"><\/aside>\n<p>But, Republicans are still criticizing the administration, despite the fact that interest is starting back up.<\/p>\n<p>Education and the Workforce Committee Chairwoman Virginia Foxx (R-N.C.) and Senate Health, Education, Labor and Pensions Committee Ranking Member Bill Cassidy (R-La.) said the pause on consequences for missing payments is a \u201ca violation of the debt ceiling agreement.\u201d\u00a0<\/p>\n<p>But, student loan advocates argue Biden is able to extend a pause and not violate the deal with McCarthy because they say the deal was specific to the president extending the pause under the Higher Education Relief Opportunities for Students (HEROES) Act.<\/p>\n<aside class=\"ad-unit ad-unit--mr6_ab\"><\/aside>\n<p>\u201cThe agreement was that while it codified ending the payment pause, it didn\u2019t give the president explicit directions as far as who to collect the debt from and how much he collected and so there is some room there for the president to shape the restarting of payments,\u201d Cody Hounanian, executive director at SDCC, said.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1400\" height=\"787\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/foxxvirginia_030123ag02_w.jpg?w=900\" alt=\"House Education and Workforce Committee Chairwoman Virginia Foxx (R-N.C.)\" class=\"wp-image-3944063\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/foxxvirginia_030123ag02_w.jpg 1400w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/foxxvirginia_030123ag02_w.jpg?resize=160,90 160w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/foxxvirginia_030123ag02_w.jpg?resize=300,169 300w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/foxxvirginia_030123ag02_w.jpg?resize=768,432 768w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/foxxvirginia_030123ag02_w.jpg?resize=1280,720 1280w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/foxxvirginia_030123ag02_w.jpg?resize=645,363 645w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/foxxvirginia_030123ag02_w.jpg?resize=320,180 320w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/foxxvirginia_030123ag02_w.jpg?resize=256,144 256w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/foxxvirginia_030123ag02_w.jpg?resize=512,288 512w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/foxxvirginia_030123ag02_w.jpg?resize=640,360 640w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/foxxvirginia_030123ag02_w.jpg?resize=876,492 876w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/foxxvirginia_030123ag02_w.jpg?resize=960,540 960w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/foxxvirginia_030123ag02_w.jpg?resize=50,28 50w\" sizes=\"auto, (max-width: 899px) 100vw, 876px\"><\/figure>\n<p class=\"has-small-font-size\"><em>House Education and Workforce Committee Chairwoman Virginia Foxx (R-N.C.) poses for a photo following a press event to highlight the introduction of the \u201cParents Bill of Rights\u201d on Wednesday, March 1, 2023.<\/em> (Annabelle Gordon)<\/p>\n<p>The administration also saw pushback on its new student debt relief plan, which uses the Higher Education Act as opposed to the HEROES Act to try to forgive loans.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr7_ab\"><\/aside>\n<p>The process will take months to complete as the proposal needs to go through a \u201cnegotiated rulemaking\u201d process so details about how much borrowers could receive or who will qualify will not be available for some time.<\/p>\n<p>Democrats have been quieter on any concerns with the new debt relief plan, but student loan advocates have not.\u00a0<\/p>\n<p>Hounanian said advocates are concerned about the amount of time it will take for the program to be implemented when, he argued, the president had other options at his disposal.<\/p>\n<p>\u201cAccording to some of the legal experts we work with, [Biden] has the option to do a preliminary rule that would allow them to start canceling the debt for folks who had their\u00a0<\/p>\n<p><a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications approved while they create a final rule through this process,\u201d Hounanian said.\u00a0<\/p>\n<p>\u201cThere are actually several options available to the administration including allowing for a much faster rollout. It is not a binary option,\u201d he added.<\/p>\n<\/div>\n<p>Copyright 2023 Nexstar <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Media<\/a> Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/homenews\/4082398-student-debt-white-house-faces-backlash-for-restarting-interest-on-loans\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The White House is facing backlash about its decision to turn back on interest for student loans as part of its \u201con-ramp\u201d repayment program, which progressives and advocates argue isn\u2019t enough to help struggling borrowers. The program aims to help those who can\u2019t repay their loans when payments resume this fall by removing the threat&#8230;<\/p>\n","protected":false},"author":1,"featured_media":581525,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/06\/scotus_studentdebt_063023gn04_w.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[4997,134417,134343,134418,134661,141609,991,35813,115],"class_list":["post-581524","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-alexandria-ocasio-cortez","tag-blog-briefing-room","tag-campaign","tag-congress-blog","tag-energy-environment","tag-evening-report","tag-joe-biden","tag-kevin-mccarthy","tag-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/581524","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=581524"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/581524\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/581525"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=581524"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=581524"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=581524"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}