Topline
Many student loan borrowers reported being unable to get loan details Wednesday after President Joe Biden announced his long-awaited student debt relief program , which apparently resulted in a large number of users overloading the service provider’s website.
Joe Biden, November 2017 Presented his views to the Chicago Council on Global Affairs on the 1st in Chicago.
Scott Olson/Getty Images
Key Facts
Nelnet, which processes more than 40% of federal student loans, making it by far the largest federal student loan servicer, went viral on Twitter as borrowers complained about not being able to access the site.
According to Downdetector, after the White House announced its plans, the Federal Student Aid Agency (FAFSA) website also experienced a sharp peak of disruption.
The websites of several other service providers, including those operated by Aidvantage, EdFinancial Services and MOHELA, appear to be There have also been slowdowns or crashes.
Nelnet spokesman Ben Kiser was giving suggested in a statement from Forbes ) Wednesday’s move caught servicers off guard, saying “servicers and borrowers are simultaneously Learn about the program.”
Crucial Quote
“We do not have details to share on our website when calling or visiting with borrowers wishing to learn about their eligibility and possible cancellation timelines,” Kiser said.
Key Background
The White House announced Wednesday that it would provide $10,000 in federal student loan forgiveness for borrowers earning less than $125,000 a year, but those receiving Pell Grant recipients are eligible for $20,000 in debt cancellation. According to the White House, the move will provide relief to as many as 43 million borrowers, about 20 million of whom have their federal debt completely cancelled. The moratorium on loan repayments that has been in place since the start of the Covid-19 pandemic will also be “extended for the last time” until the end of the year.
Big number
27 million . This is what the White House calls borrowers eligible for $20,000 in relief. According to the White House, more than 60 percent of borrowers receive Pell Grants.
Notes
There could be a lawsuit challenging Biden’s executive order, but it’s unclear how this will affect the implementation of debt relief.
Further reading
Biden’s student loan forgiveness plan: Here are the people who benefit the most and least (Forbes)
What You Need to Know About Biden’s Student Loan Forgiveness Program (The New York Times)
