Posted on: August 24, 2022 01:48 PM

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EO preliminary for now but SCOTUS has the final say

Here is the student loan forgiveness package that POTUS will announce by preliminary executive order, EO.

—up to $20K of debt cancellation for Pell grant recipients.

— up to $10K for most other non-Pell borrowers.

—all relief limited to individuals earning <$125K; families <$250K

—payment pause extended thru Dec 31.

This means the president does not have the authority to execute broad based student loan forgiveness but extend until the end of the year for the midterm election. However, It’s being done through established law for loan forgiveness that allowed for the creation of the Teacher Loan and Public Service Loan Forgiveness programs.

To understand in easier term, the NYC Council proposed undocumented allowed to vote in NYC but the court rejected twice.

So this is an announcement for now until the court has the final say but can extend the time frame until the final decision goes to SCOTUS. Then resume to a normal base for next year until the court ruling after filed.