Following one of the most important midterm elections in recent memory, results are still being tallied in many states, and neither the House nor the Senate have yet convened for either party. Seemed to exceed expectations in many state and national races.
Here’s what the election results mean for student loan forgiveness, and student loan borrowers in general.
Young voters — who may be motivated by student loan forgiveness — played a role in election results
In the weeks leading up to the election, there was an ongoing debate over whether President Biden’s comprehensive student loan forgiveness initiative was possible. Cancel up to $20,000 in student loan debt For 40 million borrowers — prove unpopularleading to a backlash against Democrats in the polls.
But those concerns, based on the primary results, may have been unfounded.young voters showed up to voteseemingly in large numbers (at least in some major races), potentially enough To swing close toward the Democratic Party.
“Young people won this election” murmured On Wednesday, the Sunrise Movement, an advocacy group for the good of young Americans. “From voting to leading her GOTV operation at scale, the young [Pennsylvania Democratic candidate for Senate] Fetterman over the edge. Fetterman’s apparent victory may help Democrats maintain control of the Senate (although the results of several other key Senate elections are still pending).
It’s too early to know if student loan forgiveness played a role in the youth vote or the Democratic victory. poll Surveys conducted over the last few years have tended to show fairly consistent support for broader student loan forgiveness initiatives, such as the one Biden formally announced in August.
Congress unlikely to rescind student loan forgiveness
Neither Democrats nor Republicans have yet won enough decisive election victories to claim a majority, so Congress still has a lot to get. , the so-called “red wave” does not seem to occur.
Given that neither party is likely to gain a decisive edge in Congress, it seems unlikely that Congress will scrap the existing student loan forgiveness initiative anytime soon. If Democrats retain control of at least one of her Houses of Congress, it’s very unlikely that they’ll pass legislation to repeal the Student Loan Forgiveness Initiative. Even if the Republican Party overthrew both the House and Senate, it would likely still fall significantly short of the two-thirds majority needed to overturn President Biden’s veto.
Biden likely to continue relying on administrative action to implement student loan forgiveness initiative
A small parliamentary majority by either party would greatly reduce the likelihood of legislative repeal of the student loan forgiveness program, but the likelihood of Congress impacting student loan forgiveness legislation or having a lasting impact on borrowers. It also reduces the chances of passing certain other reforms. (e.g. changes in bankruptcy law).
This means that President Biden will likely continue to rely on administrative action and the regulatory process to expand student loan forgiveness opportunities and implement other remedies for borrowers.
administration is still on the way Implementing restricted PSLF exemptions, operated as a temporary expansion of the Public Service Loan Forgiveness Program. The exemption ended for him in October, but the Department of Education continues to process his PSLF application.
The education sector also IDR account reconciliationThis is a comprehensive government action-based initiative to move millions of borrowers toward loan forgiveness under income-driven repayment (IDR) plans, regardless of the borrowers’ current repayment plans. . The IDR Account Reconciliation also effectively extends the many benefits of his limited PSLF exemption for borrowers working in public service careers who may have missed the October deadline.
Biden administration also implemented New regulatory changes PSLF, disability discharge, borrower defense against repayment programs, student loan interest capitalization, and IDR programs (including the establishment of new (and potentially more affordable) IDR plans). These changes should go into effect next summer.
Federal court may make final decision on Biden’s one-time student loan forgiveness plan
Biden’s One-Time Student Loan Forgiveness Initiative suspended by federal court of appeals In response to a legal challenge filed last month by a Republican-led coalition of states. did.
The lawsuit was dismissed by a federal district judge, but the state appealed to the Eighth Circuit Court of Appeals to impose a temporary administrative stay and consider a more permanent preliminary injunction. valid until the court decidesis expected anytime now that the election is over.
The results of the midterm elections will not directly affect the Eighth Circuit’s decision to lift the suspension and allow the loan forgiveness program to proceed. And the Eighth Circuit’s ruling probably won’t put an end to the legal battle over Biden’s student loan forgiveness plan. appeal to the U.S. Supreme Court.
According to government officials, 26 million borrowers have already submitted applications for student loan forgiveness.Online application portal stay active.
Further Student Loan Forgiveness Reading