The Facts
The US Dept. of Education has launched a website that will provide $10K for a large number of borrowers who earned less than $125K in the 2020 or 2021 tax years. Pell Grant recipients can receive up to $20K of debt relief.
On Monday, Biden formally announced the launch saying, "This is a game changer for millions of Americans…and it took an incredible amount of effort to get this website done in such a short time.”
The Spin
Democratic narrative
While Republicans are filing lawsuits to deny citizens vital debt relief, the Biden admin. is both providing support and making it easy to obtain. Applying is quick, requires no login, and can be done with just a social security number, birthdate, phone number, and email address – so everyone eligible should apply as soon as they get a chance. This is a massive win for borrowers.
Republican narrative
The courts will decide whether this debt-relief plan is legal. But it doesn’t take a court to see how ripe for fraud this plan is, considering the administration’s attempt to make applying "quick and easy" has dropped all guardrails. Without requiring borrowers to provide supporting documents or even their federal borrower ID number, this already costly program’s price tag will explode once the fraudsters get their hands on it. The GOP's concern has been right all along.
