actually I have paid ALL of my loans on time, per terms. and barely made a dent after 20 years. This Biden “plan” might make a bigger dent… but just maybe right? there will be all these lawsuits so I might never get it, but I will continue paying on time.
The system is set up similar to CC companies with min. payments, except with low interest rates. j/k What do CC companies call people who pay off their balances in full every month: deadbeats!
Just curious… how many years would it take to repay a student loan under current terms?
Sure i was on 25 yr plan, with forgiveness promised at the end. except i find out year 20 that oops sorry that was supposed to be income contingent THE ENTIRE TIME. (Apparently Biden’s plan addresses that gotcha too, still researching that )
they should stress the fact that interest payments alone will more than principal on that plan. so even if “forgiven” at the end you end paying a lot more $$ than you borrowed. and until recently inflation was not even a major factor.
behind paywall.
Most of the thread focused on “should he?”, now we get to the more important "can he? " WH says they’re using Heroes act that gave ED secretary the right to modify loans (much like they did with mortgage forgiveness )
Added link above, see also here generally.
thx. Basically no one would have legal standing ( taxes go to waste elsewhere too, see: Iraq, etc. No one sued to stop the wars)
“Other legal observers have suggested that loan-servicing companies and investors who own securities backed by student loans might be in a position to sue the administration”
Really? for loans owned by the Fed. govt (why I consolidated away from UHEAA etc) ? I can see that argument working for private loans
Congratulations on having the courage (presuming you didn’t plan on ditching your loans) to make a large financial bet on yourself and your judgement. Presuming you did this after starting a family, my hat’s off to you, as I would not have had the stones to take on that much risk.
OTOH, ignorance is being rewarded. (This isn’t to say that you’re ignorant - you’re obviously not because I, and my descendants, will be partially paying for your education.)
That’s never gonna happen … SADLY, as long as you’re taught by unionized teachers. Although they “love” their students, they’re as brainwashed as the kiddies they’re brainwashing.
This may be out of order from other replies, but sorry. You have stated something that I don’t doubt because I don’t think you’re a liar, but I can’t fathom the facts that you state.
These are what I surmise, but may be incorrect … You took a loan (one loan) for X dollars in the 90’s. You have been repaying your loan as was agreed to in your initial agreement. After 20+ years, you still owe more than your original loan amount.
If the above is correct, you may have a claim against whatever buffoon is in the White House, and I would wholeheartedly support your claim. There is absolutely no excuse for taking advantage of a poor immigrant who does not speak English as a way to make money off of him/her. Anyone who does this is nothing more than a conHunterman.
If you desire to go after the jackasses that have taken advantage of you, please start a kickfunder/meup/tothemoon. You will have more supporters than you imagine.
ETA: and now I read this …
they should stress the fact that interest payments alone will more than principal on that plan. so even if “forgiven” at the end you end paying a lot more $$ than you borrowed. and until recently inflation was not even a major factor.
Ignoring the part that doesn’t seem like mother tongue … So, am I now correct in presuming that you DID NOT pay back your loan as initially agreed?
I think his point is that if you borrow $100 at say 5% on a 30 year repayment plan, one calculator tells me you’d repay $93 in interest in the end assuming whatever standard mortgage amortization schedule they used. If the rates are higher or you deferred for a few years due to grad school or hardships (which suspend payments but leave interest accruing), you very well may end up paying $200 total in the end, ie the interest paid can be as big as the loan.
I’m not sure this especially needs disclosing but it couldn’t hurt. The numbers for student loans are way less dramatic than credit cards at 25% but of course they don’t want you repaying your loans, just making payments. I suppose lately the government doesn’t want you repaying them either.
I’m thinking there’s a mis-speak in here. I suspect he’s saying that he followed the rules when repaying his loan. But he did not make the initial 10- or 15-year amortized payment in the original disclosures, he modified the repayment terms under an income-based alternative. And it is his selection of the alternate payment schedule that has left him barely making a dent after 20 years.
It isnt a problem or unfairness with the loan, it’s a problem with these haphazard programs they’ve grafted on to supposedly make the loans more “affordable”. That is what has dug the hole for so many.
For people like you, this (counting your first 20 years of payments that were inelligible as elligibe towards the 25-year forgiveness) is the bigger deal, and it’s something included in this whole process, and it’s something that most people wouldn’t oppose (at least nearly as much as we oppose the $10k handout). Unfortunately for you, since it is included in a mess of illegal/unconstitutional pronouncements that will be challenged, you may not ever see this benefit. This is actually where I feel sorry for you. I know this feeling because it was similar to how I felt, on a smaller scale, when I thought it did everything right for public service loan forgiveness. They apparently fixed that last year and if I still had loans left, they would count my 10 years of payments on a non-direct loan towards the PSLF eligibility if I applied today.
Republicans and everyone else opposed to this should file a dozen lawsuits all with different plaintiffs all over the country in different districts until one sticks. I suggest getting every republican (and a few democrats if they will sign on) that passed the HEROs act to file a lawsuit claiming that the law they passed didn’t intend to allow the administration this power. That would be a pretty compelling legal argument to me - having a majority of congressmen at the time literally telling the court that the law they passed didn’t say the president could do this.
I hate the whole “impeach the other side’s guy when you have control of the House” attitude in congress these days, and I’ve never once advocated for it. But this is actually an impeachable offense in my opinion and I do think the republicans should go forward with it when they retake the house.
I’ll let Jesse clear this up, but just a little background.
Over the years, congress has passed 4 income “related” student loan repayment plans.
1993 - Income Contingent Repayment
2009 - Income Based Repayment
2014 - Pay As You Earn Repayment
2015 - Revised Pay As You Earn
Depending on when you started, what program you chose, how you got your original loan (over the years, there were probably at least a dozen different types), determines what happens when you enter one of these repayment plans. Based on my limited understanding, it is absolutely possible to enter into one of these plans and think you’ll be eligible for some sort of forgiveness 25 years later just by making the payments required, regardless of if they are the amount you would owe if you simply amortized the loan over 25 years and made that payment amount, but actually not get the forgiveness. If I had to guess, Jesse got into one of these plans with one of the less than ideal loans, and wasn’t told he had to have a different loan, or that he needed to convert his old loan into a new loan first if he ever wanted to be eligible for the 25 year forgiveness. In the process of getting into one of those plans, he essentially began making a payment that was less than what he would have owed on a 25 year amortization schedule, so each month, some of that unpaid principal would compound, increasing his debt by almost as much as whatever principal he was knocking down.
There is an excuse for borrowers like Jesse who started this whole process before 2007 (when the 2009 IBR actually passed congress) because no one actually knew what was going to happen. And there is even an excuse for many people between 2007 to 2014, because a lot of the people signing borrowers up for the IBR plans couldn’t explain them accurately enough to get people eligible for all possible benefits. But if you know anyone that graduated after 2016, or especially anyone that graduated after the 2017-2018 PSLF debacle, there is no excuse for them to claim that they were screwed over by student loans. If they can’t afford their payments, there are plenty of options for them to reduce payments to 10% of their discretionary income an be on track to have their loans forgiven in 20 years.
Forget the questions about if forgiving student debt is legal in the first place, not giving black people more than the $10k white people are eligible for is racist.
Not to worry. Biden will paper all of this over during his monumental address to the nation Thursday evening. Don’t miss it if you can!
Aww shucks. My dog ate the rabbit ears… no signal!
Thank each of you for the explanations and education. It now makes sense if I accept the fact that, given the legal opportunity to avoid a debt, most people will take it.
It also reminds me of another axiom, at least in my family, … politicians frequently create problems and then want to pass new laws and spend more money to fix the problems they created.
While I would never consider myself on these people’s side, it is important to note that for the people on the left that agree with them that blacks should be prioritized when it comes to this sort of stuff (because of slavery, or jim crow, or predatory lending, or worse schools, or the reason du jour), they have a point. This proposal is a helicopter drop of money into the suburbs, gated communities, and college towns, with only some of it blowing into low income neighborhoods. White people will overwhelmingly benefit from this over black people. When I’ve pointed that out to the white leftists that are defending this on their social media, but in the past have been all about black lives matter, all of a sudden, they clam up.
It probably goes without saying that I am not in favor of specifically targeting money at people because of their race. BUT, I am so opposed to this debt forgiveness proposal that if I were forced to choose from this blanket giveaway, and one that was done in which it specifically targeted black college attendees and specifically steered money away from white college attendees, I would prefer the race based proposal. At least more poor people and fewer rich people would get a handout if they did it that way. Let me be clear - helping college attendees may be one of the absolute worst strategies when your goal is to help poor people, but at least if it were race based, we would be helping fewer ivy league grads/RNs that make $90k/masters degreed teachers doing quite well/MBAs/etc.
Biden honestly just handed the republicans an huge gift after several weeks of wins by the democrats that had turned the tide in the generic ballot polling (and several key state polls) making it seem like there is a decent chance that democrats will hold the senate. If republicans can be smart and actually get this message out to the masses (no easy feat considering how little ink their good messages get in the legacy media), the message that this proposal has clearly cemented the democrat party as the party of the elite, the party that is actually antagonistic towards working people and their claims of unfairness, they may be able to pick up the most black voters they’ve ever had in a midterm.
They should have put a black guy and a latino guy in that ad
My $0.02… Many of the for-profit universities like Phoenix, Capella, and the others attract mostly minority students. Those universities and their students/graduates will benefit at the top end. Most of those folks received Pell grants and will get the $20k gift. Don’t know now but about a decade ago, these institutions had over a million students combined. Phoenix alone had more than 200K.