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GOP bill to block student-debt relief could balloon balances: report

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The GOP's bill to permanently block Biden's student-debt relief could cause public servants' loan balances to unexpectedly balloon if it passes, advocacy groups say

, along with immediately ending the recent payment pause. The bill was introduced using the Congressional Review Act — a fast-track tool that lawmakers can use to overturn final rules put in place by government agencies.

That's because, as SBPC's Executive Director Mike Pierce said on a Tuesday press call, the text of the CRA itself is"retroactive," meaning millions of borrowers who received debt relief through PSLF during the payment pauses risk having their loans reinstated.

SBPC and AFT's report estimates that as a result of that clause, as many as 268,660 borrowers in public service who received debt relief from September 2022 through March 2023 could have $19 billion in debt reinstated, based on PSLF data from Federal Student Aid. The report also estimates that two million public servants making progress toward payments in PSLF could lose"at least some progress toward relief.

 

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