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Kilili says Biden announces student debt forgiveness
Delegate says CNMI is getting another $3.4M from FEMA to cover costs to responding to pandemic
Delegate Gregorio Kilili C. Sablan (D-MP) said yesterday that those with federal student loans will have their freeze in payment extended through Dec. 31, 2022 with up to $20,000 forgiven for eligible borrowers.
Sablan in his e-kilili newsletter also disclosed that the CNMI is receiving another $3.4 million from the Federal Emergency Management Agency to cover costs of responding to the COVID-19 pandemic, bringing to a total of $57.9 million to date the Commonwealth has received in FEMA grants related to pandemic relief.
The delegate said President Joseph Biden Jr. announced this week the student debt forgiveness, which he (Sablan), along with other congressional colleagues, requested this continued pause on collections of federal student loans.
Last July 28, Sablan and several of other U.S. lawmakers wrote a letter to Biden and U.S Department of Education Secretary Miguel Cardona, urging them to extend the pause on student loan payments, given the numerous economic issues facing borrowers across the nation, as well as administrative actions in process by the department.
The lawmakers noted that on Sept. 1, 2022, tens of millions of federal student loan borrowers are scheduled to resume payments.
Sablan and his colleagues said resuming student loan payments would force millions of borrowers to choose between paying their federal student loans or putting a roof over their heads, food on the table, or paying for childcare and healthcare—while costs continue to rise and yet another COVID-19 variant increases hospitalizations nationwide.
Sablan said yesterday that Biden also proposed lowering the cap on monthly payments from 10% to 5% of a borrower’s income.
The delegate said some borrowers may be eligible to receive relief automatically because the U.S. Department of Education has their income data.
“If you don’t know if the department has your income data, the Biden administration will launch an application in the coming weeks,” Sablan said.
President Biden, Vice President Kamala Harris, and the U.S. Department of Education have announced a three-part plan to help working and middle-class federal student loan borrowers transition back to regular payment as pandemic-related support expires.
The plan includes loan forgiveness of up to $20,000. The Biden administration will provide more details on how to claim this relief and other information in the coming weeks.
Regarding FEMA grants, Sablan said the $3,457,425 that the CNMI is getting, require no local match and are intended to pay for labor, rented equipment, materials, and contract services performed between February and October of 2020 to set up testing and screening operations.
He said the money also covers outreach to the public on health and safety information related to the pandemic.
Sablan said labor costs include $275,933 for overtime pay to 176 workers.
The delegate said to date, the Homeland Security/Emergency Management has received $44,626,962; the government’s lost wages program, $7,721,288; the Commonwealth Healthcare Corp., $3,612,310; the Office of the Governor $1,929,856; the Funeral Assistance Applicants, $87,531; or for a total of $57,977,949.
