- SIX STATES FILE CHALLENGE TO BIDEN ADMINISTRATION’S STUDENT LOAN CANCELLATION PROGRAM IN FEDERAL COURT IN MISSOURI -NEBRASKA ATTORNEY GENERAL STATEMENT
2 Likes
Meanwhile
Glad I moved my loans prior to… today. Talk about short notice.
It wouldnt surprise me if the plan all along has been for it to never actually happen. They were just running their supporter’s patience thin with all the talk of “soon”, and risking that their optimism would hold out through the election. So, announce it now, walk it back after it no longer matters.
2 Likes
but wait there’s more:
Our AG doesn’t care about predatory lenders (payday, car title loans or timeshare companies ) but does want political points
I guess this will go to Supreme Court and will be struck down. Oh well at least my wife is getting her TE PSLF.
1 Like
Honestly, I’m a little surprised that their approach isnt to just say that yes, you still owe this money, but no, we promise to never pursue collecting the debt. Let death be what formally forgives the balance, which is already a widely established and accepted principle.
Seems like that would preclude most of the legal challenges, plus it’d create a huge block of votes that are effectively held hostage for a generation (since you cant vote for the other guy, because the other guy will make you start paying again).
4 Likes
That’s literally what they have been doing since april 2020 so yeah, like you said, they should just make it explicit in their campaign ads that democrats will allow you to never pay as long as they are in office.
I’m surprised the loan servicers haven’t sued over the pandemic forbearance because they aren’t making anything off credit card fees or something like that.
3 Likes
How could you support such a despicable state? If all of the “ethical” like-minded people moved out, the state would have to cave to your “correct-think”. 
Yeah that doesn’t always work. Think MS “conservative” state has the most # of people on Medicaid, receiving fed. $. Also they seem to be using creative ways to fund their college stadiums too Is The Brett Favre Welfare Scandal A Case Of “The Rich Stealing From The Poor”?
Oops! I thought you were in AZ. MS is a great state to bring a class action lawsuit, though. 
For all those morally or otherwise opposed 
Borrowers can opt out of the program
The White House clarified last week that borrowers will be able to opt out if they don’t want to receive the debt forgiveness.
The Biden administration’s announcement came hours after a borrower sued, arguing that he would be forced to pay state taxes on the amount canceled – an expense he would otherwise avoid.
There are a handful of states that may tax the debt discharged under Biden’s plan if state legislative or administrative changes are not made beforehand, according to the Tax Foundation.
I won’t be opting out, but I expect this to be struck down given all the arguments/lawsuits I’ve seen here
3 Likes
I’m debating whether to opt out for my wife for Biden’s plan and do TEPSLF instead since that one won’t be struck down (that went thru congress i believe?)
State tax won’t be an issue like it was for the Indiana lawsuit above
I personally experienced this from UHEAA saying I can’t consolidate over to Feds (which I was able 1.5 yrs too late) I wonder if there will be a class action, esp if the forgiveness plan fails.
The proposed student loan forgiveness has simple data entry fields for income with the “threat” of perjury if you report inaccurate income information. I’m sure this will stop all potential fraud from happening, reminds me of PPP 
4 Likes
except here the target population has to have student loans and they can easily verify the AGI info from IRS (surprised why they don’t do it for all)
PPP on the other hand was unlimited with few checks and balances for “small” business. (See my posts above)
Back to topic. Got the preview directly from ED and it’s similar to news reports. App good till 12/23, although it might struck down by courts by then or maybe the Rep. house/Congress will pass something by then. My question is whether there have been claw backs when struck down?
Legal update, delays, on collections of loans possibly discharged in bankruptcy.
Navient can’t collect student debt . A New York bankruptcy judge has extended a pause on Navient Corp.’s collection of certain private student loans that borrowers say the loan servicer continued to collect after they were discharged through their chapter 7 cases.
U.S. Bankruptcy Judge Elizabeth Strong on Monday granted borrowers’ request for a preliminary injunction in a proposed class action lawsuit alleging Navient continued to collect certain private education loans the company knew had been excused in bankruptcy.
Monday’s ruling extends a pause that’s been in place since July when Judge Strong granted a temporary restraining order against Navient. The decision impacts borrowers with so-called Tuition Answer Loans and other private loans that exceed the cost of college attendance and have an outstanding balance that is due and which plaintiffs say were subject to a bankruptcy discharge, according to the ruling. The injunction will be in place while Judge Strong considers a request to certify a nationwide class of borrowers who plaintiffs allege were also subject to Navient’s efforts to collect on stale student loans, which the company is opposing.
Education Dept. cannot access your IRS information without your consent ( Otherwise the FAFSA form wouldn’t have to request access ). For current students or anyone else that has filled out a FAFSA with 2020 or 2021 tax information, they could use that to verify income.
Yeah they sent me a you’re good to go unless you opt out, but not my wife (yet) The form should have said you’re giving consent to ED for IRS
My point is the check and balance is easy to verify, hard to lie vs other programs like PPP forgiveness which had some fake small business buying lambo.s with the money. For some reason GOP likes that plan (with a lot of congress taking advantage of it themselves) They even allowed sole prop.s to get those. I wonder if they will reinstate those balances and make them non discharge in BK. .
I understand that the whole thing might just be a political ploy that will be struck down in SC, it at least got me out of the quasi private FFELP. Wife will get her loans forgiven under PSLF regardless.
Supreme Court Justice Amy Coney Barrett rejected a challenge to the Biden administration’s student loan forgiveness program on Thursday, declining to take up an appeal brought by a Wisconsin taxpayers group.
The order is a win for Biden for now, though there are other challenges in the pipeline making their way up to the high court.
Loan cancellations could begin on Sunday.
My reading: this stops any taxpayer complaining to the SC and it becoming the complaint dept. for “I don’t like this spending” eg. in my case, wars, PPP. You have to show actual harm for standing
1 Like
How is this an issue? Either a loan was discharged as part of a bankruptcy case, or it wasn’t. I’m pretty sure it’s public record.
1 Like
but they need their pound of flesh. these are student loans 