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28.08.22

Schumer reveals new numbers in New YorkNY ranked 4e In Pell Grants Across US which means NY will see OVER $20,000 Student Loan Forgiveness Compared to Other States; At least $16.3 billion Dollars will be canceled in New York; More 1.09 million Borrowers will see their debt totally erased and 2.25 million NY-ers will see some relief

The New York Fed’s total loan debt will decline from its current $93.9 billion; But Schumer says loan providers, who along with the federal government, MUST be ready for the increased calls to come

Schumer: Fed loan managers must be ready for the wave of calls that must come so that borrowers can be helped quickly

Standing with New Yorkers who will benefit from President Biden and Schumer’s historic student loan reform announced last week, U.S. Senator Charles Schumer revealed New York’s full numbers on who will benefit and publicly called student loan service providers who are already being paid by the federal Department of Education to staff up and be ready before the fall, when calls and questions about this landmark reform will peak. Schumer said $16.3 billion in debt will be forgiven in New York alone and he expects more than 2.25 million New Yorkers to ask their loan service provider questions. federal. Schumer said the money is already there for these providers to staff — through federal appropriations — to meet that demand and questions about relief, new flexibility, loosen payment programs and more. must be responded to quickly to ensure that everyone who is eligible for relief receives it as soon as they are eligible.

“Last week we saw how, with the stroke of a pen, President Biden took a giant leap forward in solving the student debt crisis by canceling massive amounts of student debt for millions of borrowers. The positive impacts of this decision will be felt by families in New York and across the country, especially in minority communities, and is the single most effective action the President can take to help working families and the economy. and today, we have an even more precise vision of the figures”, said US Senator Charles Schumer.

In 2021, 455,599 New Yorkers received Pell Grants at an average of $4,385 per person. New York ranked fourth among states with the most Pell recipients in the country. Those who received Pell grants and have federal loans will benefit greatly from the $20,000 federal student loan forgiveness.

$16.53 billion in federal student loans will be forgiven in New York, with 1.09 million borrowers having their debts fully erased and 2.25 million borrowers getting at least relief.

Due to a Schumer provision installed in the US bailout in 2021, all New York student loan repayments is tax free.

New Yorkers in public service will now have a streamlined path to pardon, where past payments that were not eligible in the past will now be toward the 10-year service mark.

“New York ranked 4e in Pell Grants across the United States,” said Schumer. “This means that New York will see over $20,000 in student loan forgiveness compared to other states and at least $16.3 billion will be canceled in the state, with over one million borrowers New Yorkers whose debt will be totally erased. Additionally, more than 2 million New Yorkers will see some relief, and it couldn’t happen soon enough, because this burden of student debt has been exacerbated by a system of boondoggles. , unfair compound interest and much more.

“That’s why we need service providers ready to answer the questions of the millions of New Yorkers who are eligible for this debt forgiveness,” Schumer added.

Snapshot of Student Debt in New York:

  • Number of New Yorkers with federal student loan debt: 2.4 million borrowers
  • The total federal debt balance in New York is $93.9 billion.
  • The average student debt for a New York borrower is: $38,400

(Source: https://studentaid.gov/data-center/student/portfolio // March 31, 2022)

“This action, along with pausing federal student loan payments, interest and collections, will improve the economic security of borrowers, allowing them to invest in their families, save for emergencies and repay other debts. Additionally, I am pleased to see the President’s proposed work to significantly simplify and expand access to student loan relief programs, including the Civil Service Loan Forgiveness Program, and I look forward to additional enhancements to other programs like income-contingent repayment, which will also allow millions of additional student borrowers to better access existing programs to reduce their student loan debt,” Schumer added.

“No president or Congress has done more to ease the burden of student debt and help millions of Americans make ends meet. Make no mistake, the work will continue as we pursue every avenue available to solve the student debt crisis, help close the racial wealth gap for borrowers, and keep our economy growing,” he said.

According to Politico, “Schumer began his campaign for student debt forgiveness ahead of Biden’s inauguration, at a November 20, 2020 meeting in Wilmington at Biden’s transitional headquarters where he privately introduced the president-elect. . The goal over the next two-plus years was to raise the profile of the issue to something more than a millennial dream with events, roundtables and press conferences in New York and DC”

The 2021 U.S. bailout also included a Schumer-drafted provision that makes all types of student loan forgiveness tax-exempt until December 2025. It ensures the cancellation would not be treated as taxable income.

According to NYC Consumer Affairs, student loan debt is currently the second largest source of consumer debt in the United States, at over $1.5 trillion. Tuition increases resulting from cuts in public spending on higher education have pushed the average amount borrowed for a bachelor’s degree to $30,000, nearly double what it was 20 years ago. Rising borrowing, stagnating wages, and expanding higher education in the most financially vulnerable communities without strengthening the required support systems have all led to the current student debt crisis. The White House said that since 1980, the total cost of public and private four-year colleges has almost tripled, even after adjusting for inflation. Federal support has not followed: Pell grants once covered nearly 80% of the cost of a four-year public college degree for students from working families, but now only cover a third. This has left many students from low- and middle-income families with no choice but to borrow if they want to get a degree.

“I’ve always thought of student and youth debt as an anchor. While college should be a ladder, it’s an anchor around their ankles and they can’t make decisions in life. They wake up in the middle of the night worried about how they’re going to pay that $400 payment. » Schumer said. “Now we have action.”

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