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Student loan balances wiped for the first batch of borrowers in Biden's SAVE plan
Secretary of Education Miguel Cardona answers questions during the daily briefing at the White House Aug. 5, 2021, in Washington, D.C.
Win McNamee/Getty Images
An email went out this morning to some student loan borrowers basically saying, you’re debt free.
On Wednesday, the federal Education Department zeroed out loan balances for nearly 153,000 borrowers. They are people who borrowed $12,000 or less, have been paying their student loans for at least 10 years, and enrolled in the Biden administration’s new repayment plan called SAVE launched last summer.
“We’re providing debt relief to people who need it the most,” said Education Secretary Miguel Cardona on Wednesday in an interview on NPR’s Morning Edition. “We’re also addressing the root cause of the issue, which is, the cost of college is out of control,” Cardona said.
The Saving on a Valuable Education (SAVE) repayment plan has become a key vehicle for President Biden and Secretary Cardona since the Supreme Court last year struck down the administration’s plan to forgive hundreds of billions of dollars in federal student loan debt. Republican lawmakers have tried to stop the SAVE plan, arguing that it is outside of the administration’s authority and criticizing the president for campaigning for votes with the new policy.
Wednesday’s debt cancellation announcement comes after a shaky rollout of the new FAFSA application resulting in a delay of student aid award letters, along with people unable to fill out the form.
NPR’s Steve Inskeep interviewed Education Secretary Miguel Cardona about the SAVE plan and problems with the financial aid application and awards process. The conversation below has been edited for length and clarity.
By paying off people’s excessive debts, you encourage colleges to keep charging more and more. Is there a moral hazard involved in forgiving debts which allows colleges to encourage people to borrow more in the future?
It’s a moral hazard if you’re only doing debt relief, but I believe we’re balancing it out with accountability on colleges and making sure that the return on investment is clear. And, where we’re putting pressure on those colleges that are charging $150,000 to $200,000 for a degree that students could get for $50,000 somewhere else.
Would you explain how your authority is different when relying on this 1965 law [Higher Education Act] than it had been under the law the Supreme Court rejected for you?
The Supreme Court rejected the president’s most bold plan to provide debt relief in our country’s history using the Heroes Act. It was pandemic related. The Supreme Court struck that down. However, the mentality of making higher education more affordable has never diminished in this administration. We use the Higher Education Act [of 1965], the authority that it gives me as Secretary of Education to, for example, make payment plans based on income. We’re using the negotiated rulemaking process to come up with a debt relief plan that will positively impact Americans and give them an opportunity to to get back on their feet. We’re unapologetic about this.
Can this debt relief, in your view, survive any court challenge? And, can this debt relief survive a change in presidential administrations?
We’re using the regulatory process, which we believe includes public comment and negotiations with folks that don’t agree with us. So we do believe through this process it can continue, but we recognize that no matter what turn we make, we’re going to have folks challenging it. There are some that benefit from the system the way it was and I expect to hear from them. And, if I don’t hear from them, that means I’m not pushing hard enough.
Mr. Secretary, in moving up this announcement of the student loan debt forgiveness, some people will naturally wonder if your attention is on the right problem right now because you’re in the middle of serious delays with FAFSA, the standard college financial aid form. Many people are going to get close to their college acceptance dates before they hear back from the federal government about financial aid. Are you on top of that problem?
We absolutely are. Since day one, we’ve been fighting, whether it’s fixing public service, loan forgiveness, doing the income driven repayment adjustments. And with regard to FAFSA – yes, we’re working aggressively there. We recognize that there are delays and we’re working daily around the clock to make sure that we get the information as quickly as possible. We’re moving in the right direction. Change is hard. We’re focused on it. As a parent of a high school senior myself, I recognize that delays are challenging. But at the end of the day, what we’re delivering is going to be better for the American people.
I grant that the overall effort is to improve the process. But the immediate problem, as you know, is there’s been this problem with calculations for adjustments for inflation. People are experiencing delays they would want to have heard in January, but may hear in March. And many people have college acceptance dates of May. Can you guarantee the public that they’re going to get their information in time to think about their college decisions and answer on time?
Yes. We support those colleges that are stepping up and saying, you know, I’m going to push back the date. It is a major change. We recognize there are delays and those are frustrating. But at the end of the day, more students will get more aid, more access to college; and at the end of the day, that’s the goal.
This story was edited by Erika Aguilar. The audio version was produced by Ana Perez and edited by Mo ElBardicy.
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Senate Adopts GOP Budget, Laying the Groundwork to Fund ICE and Reopen DHS
The Senate early Thursday morning adopted a Republican budget blueprint that would pave the way for a $70 billion increase for immigration enforcement and the eventual reopening of the Department of Homeland Security.
Republicans pushed through the plan on a nearly party-line vote of 50 to 48. It came after an overnight marathon of rapid-fire votes, known as a vote-a-rama, in which the G.O.P. beat back a series of Democratic proposals aimed at addressing the high cost of health care, housing, food and energy. The debate put the two parties’ dueling messages on vivid display six months before the midterm elections.
Republicans, who are using the budget plan to lay the groundwork to eventually push through a filibuster-proof bill providing a multiyear funding stream for President Trump’s immigration crackdown, used the all-night session to highlight their hard-line stance on border security, seeking to portray Democrats as unwilling to safeguard the country.
Democrats tried and failed to add a series of changes aimed at addressing cost-of-living issues, seizing the opportunity to hammer Republicans as out of touch with and unwilling to act on the concerns of everyday Americans.
Here’s what to know about the budget plan and the nocturnal ritual senators engaged in before adopting it.
Republicans are seeking a way around a filibuster on D.H.S. funding.
The budget blueprint is a crucial piece of Republicans’ plan to fund the Department of Homeland Security and end a shutdown that has lasted for more than two months. After Democrats refused to fund immigration enforcement without new restrictions on agents’ tactics and conduct, the G.O.P. struck a deal with them to pass a spending bill that would fund everything but ICE and the Border Patrol. Republicans said they would fund those agencies through a special budget bill that Democrats could not block.
“We can fix this with Republican votes, and we will,” said Senator Lindsey Graham, Republican of South Carolina and the Budget Committee chairman. “Every Democrat has opposed money for the Border Patrol and ICE at a time of great peril.”
In resorting to a new budget blueprint, Republicans laid the groundwork to deny Democrats a chance to stop the immigration enforcement funding. But they also submitted themselves to a vote-a-rama, in which any senator can propose unlimited changes to such a measure before it is adopted.
The budget measure now goes to the House, which must adopt it before lawmakers in both chambers can draft the legislation funding immigration enforcement. That bill will provide yet another opportunity for a vote-a-rama even closer to the November election.
Democrats used the moment to hammer Republicans on affordability.
Democrats took to the floor to criticize Republicans for supercharging funding for federal immigration enforcement rather than moving legislation that would address Americans’ concerns over affordability.
“This is what Republicans are fighting for,” said Senator Chuck Schumer, Democrat of New York and the Democratic leader. “To maintain two unchecked rogue agencies that are dreaded in all corners of this country instead of reducing your health care costs, your housing costs, your grocery costs, your gas costs.”
Democrats offered a host of amendments along those lines, all of which were defeated by Republicans — and that was the point. The proposals were meant to put the G.O.P. in a tough political spot, showcasing their opposition to helping Americans afford high living costs. Fewer than a handful of G.O.P. senators crossed party lines to support them.
Republicans blocked Democrats’ proposals to address high living costs.
The G.O.P. thwarted an effort by Mr. Schumer to require that the budget measure lower out-of-pocket health care costs for Americans. Two Republicans who are up for re-election this year, Senators Susan Collins of Maine and Dan Sullivan of Alaska, voted with Democrats, but the proposal was still defeated.
Republicans also squelched a move by Senator Ben Ray Lujan, Democrat of New Mexico, to create a fund that would lower grocery costs and reverse cuts to food aid programs that Republicans enacted last year. Ms. Collins and Mr. Sullivan again joined Democrats.
Also defeated by the G.O.P.: a proposal by Senator John Hickenlooper, Democrat of Colorado, to address rising consumer prices brought on by Mr. Trump’s tariffs and the war in Iran; one by Senator Edward J. Markey, Democrat of Massachusetts, to require the budget measure to address rising electricity prices, and another by Mr. Markey to create a fund to bring down housing costs.
Senator Jon Ossoff, a Democrat who is up for re-election in Georgia, also sought to add language requiring the budget plan to address health insurance companies denying or delaying access to care, but that, too was blocked by Republicans.
Republicans sought to amplify their hard-line messages on immigration, voter I.D. and transgender care.
While Republicans had fewer proposals for changes to their own budget plan, they also sought to offer measures that would underscore their aggressive stance on immigration enforcement and dare Democrats to vote against them.
Mr. Graham offered an amendment to allocate funds toward a deficit-neutral reserve fund relating to the apprehension and deportation of adult immigrants convicted of rape, murder, or sexual abuse of a minor after illegally entering the United States. It passed unanimously.
Senator Josh Hawley, Republican of Missouri, sought to bar Medicaid payments to Planned Parenthood, which provides abortion and other services, and criticized the organization for providing transgender care to minors. Senator John Kennedy, Republican of Louisiana, also attempted to tack on the G.O.P. voter identification bill, known as the SAVE America Act. Both proposals were blocked when Democrats, joined by a few Republicans, voted to strike them as unrelated to the budget plan.
The Republicans who crossed party lines to oppose their own party’s proposals for new voting requirements were Ms. Collins along with Senators Mitch McConnell of Kentucky, Lisa Murkowski of Alaska and Thom Tillis of North Carolina.
Ms. Collins and Ms. Murkowski also opposed the effort to block payments to Planned Parenthood.
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Who is John Phelan, the US Navy Secretary fired by Pete Hegseth?
The firing of US Navy Secretary John Phelan is the latest in a shakeup of the American military during the war on Iran, now in its eighth week.
The Pentagon said Phelan would leave office immediately.
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“On behalf of the Secretary of War and Deputy Secretary of War, we are grateful to Secretary Phelan for his service to the Department and the United States Navy,” said chief Pentagon spokesperson Sean Parnell. “We wish him well in his future endeavours”.
His firing comes at a critical moment, with US naval forces enforcing a blockade on Iranian ports and ships, and maintaining a heavy presence around the Strait of Hormuz, through which 20 percent of the world’s oil and gas passes during peacetime.
Although the Pentagon gave no official reason for the dismissal, reports indicate the decision was linked to internal disputes, including tensions with Defense Secretary Pete Hegseth.
Phelan’s removal is part of a broader pattern of dismissals and restructuring within the US military under President Donald Trump’s administration – including during the current war.
So, who is John Phelan, and what impact could his firing have on US military strategy?
Who is John Phelan?
As the US Navy’s top civilian official, Phelan had various responsibilities, including overseeing recruiting, mobilising and organising, as well as construction and repair of ships and military equipment.
He was appointed in 2024 as a political ally of Trump, despite having no prior military or defence leadership experience.
Before entering government, Phelan was a businessman and investment executive, as well as a major Republican donor and fundraiser — a background that is fairly common among Trump appointees and advisers. The US president’s two top diplomatic negotiators, for instance, are Steve Witkoff — a real estate businessman with no prior diplomatic experience – and Trump’s son-in-law, Jared Kushner.
According to the Reuters news agency, Phelan’s tenure quickly became controversial. He faced criticism for moving too slowly on shipbuilding reforms and for strained relationships with key Pentagon figures, including Hegseth and his deputy, Steve Feinberg.
In addition, Phelan was reportedly under an ethics investigation, which may have weakened his standing in the administration.
Navy Undersecretary Hung Cao, who was also reported to have a difficult relationship with Phelan, has become acting secretary. Fifty-four-year-old Cao is a 25-year Navy veteran who previously ran as a Republican candidate for the US Senate and House of Representatives in 2022 and 2024 respectively, but was unsuccessful on both occasions.
Democrats have criticised Phelan’s removal, calling it “troubling”.
“I am concerned it is yet another example of the instability and dysfunction that have come to define the Department of Defense under President Trump and Secretary Hegseth,” said Senator Jack Reed, the top Democrat on the Senate Armed Services Committee.
Who else has the Trump administration fired since the war with Iran began?
Phelan’s removal is the latest in a series of senior military leaders being fired or are leaving during the US-Israeli war on Iran, in addition to others since Trump was re-elected.
Among the most notable dismissals was Army Chief of Staff General Randy A. George, in the first week of April. George was appointed in 2023 under former US President Joe Biden.
According to reports, Hegseth also fired the head of the Army’s Transformation and Training Command, a unit concerned with modernising the army, and the Army’s chief of chaplains. The Pentagon has not confirmed their dismissal.
Why is Phelan’s dismissal significant?
The 62-year-old’s removal comes during a fragile ceasefire with Iran, as the US continues to move more naval assets into the region.
The Navy is central to enforcing Trump’s blockade of Iranian ports to restrict Iran’s oil exports and apply economic pressure on Tehran, as the US president looks eager to wrap up the war, which is deeply unpopular to many Americans.
However, there are no indications that Trump is willing to end the blockade or other naval operations in the Strait of Hormuz, as negotiations between Washington and Tehran have come to a standstill.
Tensions have escalated in recent days after the US military seized an Iranian container ship. The US claimed it was attempting to sail from the Arabian Sea through the Strait of Hormuz to the Iranian port of Bandar Abbas.
Tehran responded by describing the attack and hijack as an act of “piracy”.
Iran has since captured two cargo ships and fired at another.
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Not a Deal-Breaker: White House Downplays Iranian Action Near the Strait
Just two weeks ago, President Trump threatened to wipe out Iran’s civilization if it did not open the Strait of Hormuz. Days later, he said any Iranian “who fires at us, or at peaceful vessels, will be BLOWN TO HELL!”
Yet on Wednesday, after Iran seized two ships near the Strait of Hormuz, the White House was quick to argue the action was not a deal breaker for potential peace negotiations.
“These were not U.S. ships,” Karoline Leavitt, the White House press secretary, said on Fox News. “These were not Israeli ships.” Therefore, she explained, the Iranians had not violated a cease-fire with the United States that Mr. Trump has extended indefinitely.
She cautioned the news media against “blowing this out of proportion.”
The surprisingly tolerant tone from the White House suggests Mr. Trump is not eager to reignite a war that he started alongside Israel on Feb. 28 — a war that has proved unpopular with Americans and has gone on longer than he initially estimated.
The president on Tuesday extended a cease-fire between the United States and Iran that had been set to expire within hours, saying he wanted to give Tehran a chance to come up with a new proposal to end the war.
The American military has displayed its overwhelming might during the war, successfully striking thousands of targets. But it remains unclear whether Mr. Trump will accomplish the political objectives of the war.
The Iranian regime, even after its top leaders were killed, is still intact. Iran has not agreed to Mr. Trump’s demands to turn over its nuclear capabilities to the United States or significantly curtail them. And the Strait of Hormuz, a key passageway for world commerce that was open before the war, remains closed.
Nevertheless, the White House has repeatedly highlighted the military successes on the battlefield as evidence it is winning the war.
“We have completely confused and obliterated their regime,” Ms. Leavitt said on Fox Wednesday. “They are in a very weak position thanks to the actions taken by President Trump and our great United States armed forces, and so we will continue this important mission on our own.”
The oscillation between threats and a more conciliatory tone has long been one of Mr. Trump’s signature negotiating strategies.
Potential peace talks between the two countries are on hold. Vice President JD Vance had been poised to fly to Islamabad for negotiations. But the trip was postponed until Iran can “come up with a unified proposal,” Mr. Trump said.
The United States recently transmitted a written proposal to the Iranians intended to establish base-line points of agreement that could frame more detailed negotiations. The document covers a broad range of issues, but the core sticking points are the same ones that have bedeviled Western negotiators for more than a decade: the scope of Iran’s uranium enrichment program and the fate of its stockpile of enriched uranium.
Mr. Trump has not spoken publicly about the cease-fire, other than on social media. On Wednesday, he also posted about topics including “my Apprentice Juggernaut” — a reference to his former television show; the Virginia elections, which he called “rigged”; and a new book about Supreme Court Justice Samuel A. Alito Jr.
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