Are Biden’s Student Loan Debt Relief Applications Ready? not so fast

  • The administration has teased the release of the app since President Biden’s announcement in August.
  • Now in mid-October, the White House is holding back on giving details of a launch date.
  • The confusion surrounding the release of the app shows how unprepared the Biden administration was to roll out debt cancellation.

Of the headlines i saw on tuesdayit looked like the White House might have had some news on the student loan forgiveness front. Maybe the long-awaited apps were finally ready for prime time.

It turns out that was not the case.

Instead, the Biden administration was simply “previewing” what the promised form would look like — each time it moved to release it.

Launch failure

On Twitter, the White House made his “announcement” this way:

“Student Debt Relief Update: Today, the U.S. Department of Education Releases a Preview of the Student Debt Relief Application Form.”

The following is a graph showing how easy it will be to fill out the form and get Biden’s promised pardon.

This could cause real economic harm:Biden’s student loan forgiveness is costly for taxpayers and bad for higher education

The administration has teased the release of the app since President Joe Biden’s announcement in August. It had to be fixed by “beginning of October.”

We’re in mid-October, and the White House is holding back on offering more details on the launch date, other than saying it’ll happen this month.

The confusion surrounding the release of such a simple application shows how unprepared the Biden administration was to roll out debt cancellation.

Economic forecasts deteriorate

The moment of the announcement of forgiveness, as I noted earlierwas a calculated move by the president to woo voters ahead of the midterm elections.

What Biden doesn’t take into account, however, is that Americans are the most worried right now. on inflation and the economy.

While Biden has tried to stay sunny on the country’s economic outlook, he admitted this week that there is a chance of a “slight recession.” Others, including Jamie Dimon, CEO of JPMorgan Chaseare much more certain that this is where we are heading.

More from Ingrid Jacques:Inflation reduction bill? Don’t buy the Democrats’ fantasy twist on reality.

This is the worst possible time for the government to stimulate inflation by more than $400 billion in loan cancellations it will add to the country’s skyrocketing debt (I’ll write more about that later in the week).

To make matters worse, the majority of the cancellation will go to Americans who need the extra help the least. Committee for a Responsible Federal Budget estimated that 57% to 65% of the extended suspension of loan repayment and cancellation will benefit the top half of earners.

Lawsuits likely delay pardon

The good news is that several federal lawsuitsfiled by plaintiffs who may be harmed by Biden’s actions, challenge the legality of the unilateral loan cancellation.

Learn more about Biden student loan relief:Biden’s on-the-fly approach to canceling student loans creates a huge mess

The success of these lawsuits is the best chance of stopping Biden’s order, which will weigh on all taxpayers, many of whom have never been to college or who have already paid off their debts.

The Pacific Legal Foundation, which filed first court case, amended his complaint and is now filing a class action lawsuit because the government tried to circumvent judicial review when it comes to individual plaintiffs.

According to PLF, the Ministry of Education responded to the complaint on Tuesday, saying it would not cancel anything until October 23. He also stated only in a legal deposit recounts another trial.

I guess that’s what contributed to the delay in releasing the app, but the administration probably won’t be upfront with borrowers about it.

Ingrid Jacques is a columnist for USA TODAY. Contact her at [email protected] or on Twitter: @Ingrid_Jacques

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