Sen. Chuck Schumer on Sunday called on the U.S. Department of Education to ensure that loan processors hire enough staff to handle the anticipated amount of applications, phone calls and questions related to President Joe Biden's student debt relief. Credit: Craig Ruttle

WASHINGTON — Sen. Chuck Schumer on Sunday called on federal student loan providers to boost their staffing levels to handle the volume of calls from borrowers inquiring about the student debt relief plan rolled out last week by President Joe Biden.

Schumer (D-N.Y.), the Senate majority leader and longtime proponent of a student debt forgiveness plan, said more than 2 million New York borrowers will benefit from Biden’s plan, which offers up to $20,000 in debt forgiveness depending on the borrower’s income and other eligibility requirements.

“We need to get our loan processors to get with it, and inform students how to do this,” Schumer said at a news conference in Manhattan.

On Wednesday, after Biden unveiled his long-awaited plan, websites for some of the largest federal student loan providers crashed, and consumers reported long delays to reach representatives by phone.

Schumer's briefing came as Democrats fanned out on the Sunday morning political talk shows to mostly laud the plan, while Republicans raised their concerns about its fairness.

Schumer said the U.S. Department of Education has money allocated to help student loan processors hire more workers, but urged the companies not to “rest on their laurels,” before an expected surge in calls come fall, when the Biden administration will release an application for borrowers to receive the reprieve.

“They’ve got to make sure they protect the students they're supposed to protect,” Schumer said.

Under Biden’s plan, borrowers who were issued federal student loans on or before June 30, 2022, and earn less than $125,000 in individual income or couples who file their taxes jointly who earn less than $250,000 will qualify for up to $10,000 in debt relief.

Pell Grant recipients — typically given to students from low-income backgrounds — will be eligible for an additional $10,000 in relief for a total of $20,000 in debt forgiveness.

Private loan borrowers are not eligible for the reprieve.

Biden also extended for one final time a pause on federal student loan payments that was enacted by the Trump administration in March 2020 in response to the pandemic. Payments will resume on Jan. 1.

Sabrina Calazans, 24, of Middle Island, who spoke at Schumer's news briefing, defended Biden's debt relief plan, which she said will help clear up $20,000 of the $30,000 she borrowed to attend Arcadia University in Pennsylvania, where she majored in international studies.

Calazans, who graduated in 2019, said she struggled to find a full-time job during the pandemic, often juggling several temporary jobs including work as a camp counselor on Long Island.

"Seeing debt cancellation means having a second chance to pursue the American dream," said Calazans, who said she currently works full time for a nonprofit. "It means homeownership, starting a family, opening up a small business and living a dignified life without the crushing student loan debt that we have."

On the Sunday morning political talk show circuit, response to the student debt relief plan continued to be split — even among members of the president’s own party. While most Democrats have celebrated it, some moderates locked in tight congressional races have raised concerns about the rollout.

Rep. Tim Ryan (D-Ohio), a moderate running for an open Senate seat currently held by a Republican, was critical of the student debt relief plan, telling CNN’s “State of the Union” that it “really does send the wrong message” at a time when consumers are grappling with inflation.

“There's a lot of people out there making 30, 40 grand a year that didn't go to college, and they need help as well," Ryan said. “With the student loan piece, you could very easily allow them to negotiate — renegotiate down the interest rates."

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