Biden Predicts Student Loan Relief Checks Within Two Weeks

[MichMan]

This is hopefully a big boost for the midterms, but I'm a little confused by his statement regarding checks.


All this time I thought the loan forgiveness would just be applied to the outstanding balance on the loans held by the Federal government and no money would actually be changing hands. This statement today seems to indicate that $10k checks are going to be sent out soon to everyone who is eligible.

Who are the checks the president referenced going to be sent to? The students who took out the loans?

How do they ensure that the money is actually applied against the loan balance and just not spent on something else? Also, don't understand how they could verify eligibility so quickly for millions of applicants.

I assumed up to now that fraud was going to be negligible because the money could simply be added back into people's outstanding loan balances if it was found they weren't eligible. If they are actually sending out $10k-$20k checks like he said, how would you ever get that money back ?


[link:https://news.yahoo.com/biden-predicts-student-loan-relief-235743682.html|

[Indykatie]

1. How Many Folks Will Spend Some or All of the Money on Something Else? Probably Most of Them

[underpants]

4. Neither his statement nor this article implies that at all

The article points out just the opposite- that the checks will go to the loan organizations

[MichMan]

10. I didnt see where the article stated that it was going to the providers

Where does it say that?

[underpants]

16. All he said was that the checks would be going out

“I think in the next two weeks you’re going to see those checks going out.”

[Sympthsical]

6. It's a rebate for payments made during the pandemic

The balance of the loan is paid directly to the provider. But if you made payments during the pandemic that brought you under the 10k/20k threshold, you'd get a rebate for the difference.

[Celerity]

2. I highly doubt they will send 10 to 20 thousand usd cheques out that are payable to the borrowers.

That make no sense.

I am sure the money will be sent to the debt holders accounts, or the amount simply debited from the balance of a government-held account.

[Sympthsical]

8. "Of course I'm using my Pell Grant for school!"

*buys playstation*

I had a friend who seriously did that. Then he dropped out of school and was shocked - shocked! - when they came looking for the money, lol.

[MichMan]

12. I bet they are thinking they were pretty smart now.

Got the taxpayers to pay for a Playstation and who knows what else

[Sympthsical]

14. It has to be paid back if you drop out

Pell Grants are meant for general expenses throughout the school year. Food, housing, supplies, whatever. There's no restriction on what you buy with it. You just have to finish out the academic term the Pell Grant is for.

He didn't, because he is dumb. He ended up having to pay money back.

I was amused.

[MichMan]

15. I thought you were referring to a loan

Your post clearly said pell grant. It has been 45 years since I was in college

[Sienna86]

3. Funds go to loan providers

Loan providers let folks know that their 10,000 was forgiven.

[Sympthsical]

5. For people who made payments during the Covid pause

So, say you had a $10,000 loan at the time the Covid pause came into effect, and you kept making payments and paid it down to $9,000 during the pause.

If you're eligible for $10,000 forgiveness, you'd get a $1,000 rebate check for what you paid during the pandemic.

It's a somewhat narrow band of people.

[RandiFan1290]

7. Tell us you're mad

Without telling us you are mad

[sl8]

9. I'm not sure why you think payment would go to the borrower instead of the lender.

Biden didn't say who the checks were going to. To me, the most logical assumption would be that payment would go to the lender, not the borrower.

Is it that he used the word "check", rather than "payment"?

[MichMan]

11. Yes the specific usage of the term check made it confusing who was getting them since it never said.

I also thought the Federal government was the lender of the forgiven loans and not private entities. Why would the government need to send a check to themselves?

[sl8]

13. I believe he was using "checks" as a synonym for "payments"

Similar to how people still say "taped" or "videotaped", even though there's no actual tape involved anymore.

If my boss says, "there'll be a little extra in your paycheck", I expect a little extra pay, even though I don't get actual checks (I have direct deposit).