The relief is a result of fixes to the student loan system’s income-driven repayment plans. Under those repayment plans, borrowers get any remaining debt cancelled by the government after they have made payments for 20 years or 25 years
This is key. It is not wholesale and targeted
My only “gotcha” is I consolidated grad+undergrad so I’m probably paying for another 5 yrs, which means Trump might reverse all this if it’s an exec order. In that way I agree with @meed18 It should be done by rule making/ Congress.
That isnt a fix. Forgiving loans for teachers/public service is one thing, there additional obligations the borrower must fulfill in exchange for the forgiveness. But it’s entirely different to tell people “Meh, you kinda tried to sort of pay your debts a little bit, so that’s good enough.” That’s inherently not fullfilling their initial obligations, let alone anything additional, yet handing out the benefit anyways.
This is no different than forgiving mortgages after 25 years of payments, including interest-only loans where the borrower has only paid a fraction of what they had agreed to. In fact, if this stands, mortgages is exactly where this train is heading next. Unless it takes a detour to credit card debt first.
One in five is at higher risk, relative to other borrowers, of struggling to make their monthly payments after the restart, according to a report from the Consumer Financial Protection Bureau.
The Biden administration has said that borrowers who miss payments in the first year after the pause ends won’t be considered delinquentor placed in default. The administration established that plan after the Supreme Court ruled against President Biden’s debt-cancellation program in late June.
Some borrowers took the payment pause as an opportunity to save the extra money or use it to pay down other debts. But the more common response was to spend it, according to a working paper from researchers at the University of Chicago.
Holeeeee Cow!!!@loper for president! You, along with Uncle Joe have not only solved the affordable housing cry me a river crisis, but also the homeless problem. That’s right - they’re not all nuts, they’re not all irresponsible, they’re not all drunks, and they’re not all druggies. They just can’t find an affordable home.
ETA: It’s getting hard to tell the difference, so I’ll specify Uncle Joe Stalin, the admitted criminal, as opposed to the one in denial.
Desantis wants to let you default on you loans… to the college, not the Feds.
includes “reforming” the education system to “make universities, not taxpayers, responsible for the loans their students accrue” and to allow those loans to be discharged through bankruptcy “like any other loan.”
So by discharging the loan in bankruptcy, he means the college would make the lender whole?
I like the idea as a compromise, but it wont ever happen. Doing so would make colleges extremely selective about who they admit that is taking out loans, with extremely selective consequences the left will consider outrageous.
If anyone was worried about an actual solution, rather than on beating the other side, I could see a hybrid when the government backs student loans up to the cost of local community colleges, and the school is responsible for backing any additional borrowing. It’d be complicated, but maybe even the government being responsible for whatever the income based repayment plans cover, with the the school responsible for any extra - essentially making the school refund partial tuition if their graduate doesnt earn a lot of money with their degree.
"This is one of the most confusing things I’ve been through, " said 28-year-old Courtney Young
Ha! Blame that on your Leader Supreme, Courtney. It requires a pretty special agenda to take “borrow $X, and you then have to pay $Y each month” and turn it into utter chaos.
The SAVE plan is intended to replace the REPAYE plan, which is one of the most widely used of the four existing plans.
Of course, why wouldnt you chose to get rid of the most used option?
Why the he-double-hockey-sticks would people repaying their debts a continuation of normal cause chaos?
Congrats! You are the new poster girl for your university. I’m sure their enrollment will jump … well, maybe if the poster shows you in your knickers … or maybe not … I haven’t seen your pic. Regardless it won’t be based on your training/education, for which you paid $54k.
said 28-year-old Courtney Young, who will be working with the third federal loan servicer assigned to her in four years on her $54,000 in government loans, which she took out to study at Winston-Salem State University in North Carolina.
$54k for Winston-Salem State University? Are you kidding? Did she have class sizes of 8?
My goodness, I was only able to get through a few paragraphs before needing numbing of my own.
It will, from all the other kids who want people to feel sorry for them too. What better to put on those recruitment posters, than how enrolling in Winston-Salem State is the path to your very own pitty party…
have yet to be finalized. It’s President Joe Biden’s second attempt to implement broad student loan forgiveness after his first plan was struck down by the Supreme Court last summer. The president will travel to Wisconsin on Monday — a key swing state this November — to announce the plan.
nearly 70% of all federal student loan borrowers would see their debt reduced or fully canceled due to Biden’s policies. But first, the plans must be finalized – a process that could take months – and must withstand any potential legal challenges.
If it goes like the previous proposal that got shot down by the courts, there may be no looking forward way to exploit it.
The proposed forgiveness only applied to loans underwritten about a year before the law would come into effect.
Now you could take out loans in hopes of future repeat of another round of handouts but you’d also risk paying interest for nothing if these do not materialize quickly enough. In that case, you’d certainly want subsidized loans in hope that the forgiveness occurs before interest starts accruing.
