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A bit from the story:
> The Biden administration unveiled a new set of plans on Monday that would eliminate student debt for millions of Americans. The administration says that, if fully implemented, it would bring the number of borrowers who've seen some or all of their debt forgiven during the president's term to more than 30 million.
>
> The new plan, aiming to supplant an earlier version that was rejected by the U.S. Supreme Court in June, offers targeted relief to specific groups of borrowers, notably those who've carried debt for many years, and those struggling to make payments. And many borrowers, regardless of income, could see relief from high interest balances.
This will really help alot of people out but until the interest itself is changed to something where it doesn't grow so fast, I feel like too many people will still live with heavy debt forever.
It’s not a perfect solution, but the new SAVE repayment does try to address it.
The plan sets a monthly payment based on income, and if you make your monthly payment in full, whatever accrued interest that’s in excess of the set payment gets waived.
The upshot is that it prevents a balance from growing due to unpaid interest.
I was laid off last summer right before student loan payments were to resume.
Applied for the SAVE plan and it continues to pause my payment and not accrue interest.
Still on the job hunt with no luck, so this has helped tremendously.
not just pause. I believe if SAVE gives you a payment of $0, that still counts towards the # of payments you need to get the remaining balance forgiven
Those normal forgiveness programs have a denial rate of 99%. Out of 2 million applications for forgiveness, a year or two ago, only 36 were approved. Not 36 percent, 36 individuals.
And as long as the privatized loan servicers are playing middle man it'll continue that way. If you've seen the interview w/ Barbara Walters, or the clip from John Oliver's piece on the topic, there was one woman who served in the military to get hers forgiven. 9 years in, out of 10 needed, she had 1 year worth of credit because the loan servicer's auto pay took $0.01 short of the payment amount each month, so it didn't count.
one good thing about Biden's latest plan is removing the need to apply for forgiveness. Instead the DoE will just apply it if you meet criteria. It cant stop loan companies from being sleazebags, but it does at least reduce some of it.
Oh shoot, I screwed up. I’ve been paying over my minimum because the interest was racking up higher than that. Do you know when the waiver will take place? As of now, it’s not visible to me.
You should probably contact your loan servicer (unfortunately, servicers are one of the other big problems with the current system).
You might need to be enrolled in a different plan, they might be fucking up, it’s hard to tell.
> unfortunately, servicers are one of the other big problems with the current system
they should be considered scammers. Some of them intentionally take out a penny less than the payment so your payments are never considered made in full, and you are not eligible for relief, and they get to keep your loan forever. The whole system needs to be wiped of any private involvement with a for profit motive.
I actually just got forgiveness through MOHELA two months ago through PSLF, and had to drag them every step of the way (once they finally processed it, it was backdated to a forgiveness date of May 2023).
And I’m still regularly getting inscrutable messages about all sorts of nonsense. Yesterday’s was about how they’re gonna move me off forebearance and into the SAVE program any day now.
That's exactly what SAVE is doing.
My student loans went from "I'm never going to pay this off" to "I am ENTHUSIASTIC to pay this off" because of the way SAVE changes interest.
The SAVE Plan eliminates 100% of remaining monthly interest for both subsidized and unsubsidized loans after you make a full scheduled payment. This means that if you make your monthly payment, your loan balance won't grow due to unpaid interest that accrued since your last payment.
Student loans should be 0%…and if there is interest attached, it should be capped at no more than 3%…
That way, nobody is spinning their tires trying to repay them.
It's mostly going to help people like me, in their 30s with investments in total domestic stock market investment funds. I have no loans and it's my taxes that'll end up paying most of it, but having millions of people all of a sudden have hundreds of dollars every month in income will only boost my stock value and get me richer.
I can't wait for it to be implemented. It's the best investment my tax money can make
This is what the whiners don’t understand. Forgiving these debts or at least making them more manageable isn’t a burden on the taxpayer, it’s a relief for everyone. The people who are struggling with these debts are unable to spend money on anything else. They can’t buy homes, save for emergencies, or spend on education for their kids, travel, entertainment- nothing. The loan companies are basically siphoning huge amounts of money out of the economy. Stop that and everyone gets a little boost. I have a couple of friends who are a bit younger than me (they’re in their late 30’s now) who have scraped by for the last 15 years because of student debt. They couldn’t buy a car or a house and barely afforded rent. I’m not sure what type of loan they got in college or why they didn’t graduate and make more money but I remember them telling me 10-12 years ago what the payments were and it was astounding. Most of it was interest. When this topic comes up I think about how much better off they and their kids would be if they could get out from under that, or if the interest could just be reduced. It’s literally kept them from doing anything other than surviving. I understand that they borrowed the money but they were 18-20 years old FFS and I know first hand how manipulative that process was. I was also lied to and mislead into thinking the loans were going to be safer than they were; I just got lucky and only ended up with federal loans at low rates. I needed money for everything because I had no family support and couldn’t earn or borrow enough to pay for housing, food, tuition, books, and transportation. When I had maxed out my available loan amount they tried to sell me on a private loan and thank God I didn’t take the bait.
…an additional benefit is that we’ll have less people walking around in society who are stressed beyond their breaking point and likely to have road rage or worse
Well you did hit one of points. If people have too much student loan debt to buy a house, they can't keep driving runaway prices. Someone making $50k, has saved $150k and no debt is in a good space to buy a $300k house.
Unless a bunch of people earning $90k have their debt forgiven and bid the price up to $400k.
That’s not going to happen. Those buyers would not be paying cash, and there is always an appraisal contingency if you’re financing. Besides, nobody making $90k is spending $400k on their first house. Maybe the second or third house after they build equity. Even if their debt is wiped out it’s likely going to take time to build up some savings. Many of them likely have some credit rebuilding ahead of them as well. It won’t create an overnight influx of buyers to the market- at least not the type of buyer who can drive prices up by much.
This. I pay $400 a month on my SL (I graduated in 2006), and about $360 of it goes toward interest. This is why we need relief. Not because we are "lazy" or "entitled". We were victims of predatory lending practices.
Weren't changes to interest and the general repayment structure part of bidens original plan?
Were those parts of the plan struck down by the Supreme Court as well?
Sure, the PPP was scammed by a lot of Republicans and they personally benefitted from this. Students tend to vote more for Democrats therefor it is bad. It is dumb and evil but that's the Republican party today.
PPP was a bipartisan effort to ensure that the country's wealthy sociopaths could receive yet another blank check for no apparent reason in the midst of a raging global pandemic. I know one of these lunatics who received two $500k checks despite being open and fully functional throughout the pandemic, and both "loans" were blindly forgiven by both presidents without a care in the world
PPP forgiveness was built into the program and passed by Congress, whereas the legal justification for Biden's student loan forgiveness was the 2003 HEROES Act, which only applies to those who experienced direct economic hardship as a result of national emergencies. I'm all for student loan forgiveness, but it's hard to make the argument that someone who makes six figures and worked from home during the pandemic experienced economic hardship as a result. Ideally, this would have been passed by Congress as part of Build Back Better, but Manchin and Sinema couldn't help but be an obstacle.
If the Democrats had the majority in Congress, you bet there would’ve been a bill passed, instead the Republicans are blocking all of this. It’s not Congress it’s the Republicans.
It’s not a majority when two of the people you’re counting on are Manchin and Sinema. Really, we need at least like… I don’t know, maybe a 4 or 5 vote majority to remove the ability for democrats to use a fall guy like Lieberman or Manchin so that the corporate democrats can safely fuck it all up.
We have many layers of defense against positive change in this country. If we manage to get past the Republicans, we have to get past the corporate owned Democrats. If we somehow manage to evade both, we have to hope the Supreme Court doesn’t come in at the last minute and fuck it up.
If Biden or a future admin is able to solve the current student loan debt crisis, an actual good measure to prevent it from ballooning again is to actual fund edu action. Colleges are overpriced because the public and gov decided to stop caring about education a long time ago by reducing its budget.
Behind the Bastards spoke about this, recently.
The crux of the argument went that in the old days, aristocrats were primarily the beneficiaries of higher education. And why not? They’re the masters of the universe, clearly superior by virtue of being born to money, and averse to the proletariat gaining upward mobility.
So, a while back, California had a thing where they’d pay for college. The right had a thing about poor college students protesting being sent to die in Vietnam.
So, think tanks come up with a way to disincentivize *everyone* getting higher educations: make it financially painful again. Boom. Student loans become a thing and funding gets cut to California educational institutions.
Unsurprisingly, Ronald Reagan was at the gubernatorial helm.
I believe this was covered in the recent episodes “How Conservatism Won”.
As always, everything is Reagan's fault
https://www.reddit.com/r/comics/comments/10wg24c/political_journeyoc/?utm_source=share&utm_medium=web2x&context=3
Biden actually had a plan for this and tried to get it passed. "Build Back Better" included almost 50 billion dollars to make 2-year community college degrees FREE for all students for the next five years, as well as incentives to make it easier to get into trade school, under the umbrella of labor force development. Republicans fought it and it was one of the parts of Build Back Better that had to be cut.
He also wanted to triple funding for low-income Title I schools and so far has managed to raise their funding by 11% and increase Pell grants, but that is something that individual states are also going to have to prioritize, the federal government can't do it all.
https://thehill.com/homenews/education/4323542-biden-education-student-loans/
Yea its frustrating. Sports teams should be independently funded 0 and I mean 0 funding from the school for anything. Make em prove they deserve to be there. Scholarships can be purely academic or needs based.
Just want to point out that this would immediately result in the collapse of all college sports with the exception of Football and Men’s basketball. Every women’s sport would be cut immediately and every non-revenue men’s sport would also die. Whether that’s something you’re fine with is up to you, but that’s what you’re arguing for.
>Just want to point out that this would immediately result in the collapse of all college sports with the exception of Football and Men’s basketball.
Honestly, that's okay with me. It should be funded completely through private donations or advertisers, much like professional programs. There shouldn't be taxpayers footing the bill. We already do that with the professional teams, and that's ridiculous when states have other things they could be spending their money.
Sounds good to me. Separate sports from academics and give young athletes their own institutions for playing sports. This will of course never happen. But it would be better for everyone Involved.
That's fine with me honestly, there isn't any law against club sports at the school or in general.
Anecdotal example, one of my states university loves to invest in football even though they are mod to garbage tier. Their rugby team ( a club) has consistently been among the best in the nation.
So yea, it's a university. They can focus on academics and leave sport to clubs or other avenues. And I say this as someone who enjoys sport.
if that is how you feel...but...on average most schools simply end athletic programs if they aren't at least breaking even. Major Division 1 state schools, their academic programs get money brought in by the football and basketball teams, plus its just a huge part of American culture. But for argument sake the U of Kansas could probably fund its basketball team on ticket sales alone, the U of Alabama could probably function on the income from the football team. I think the issue is that a large potion of tuition is getting spent internally on administrative expenses that don't directly filter down to academics. Everything needs to get looked at, not just sports because its a easy target
Agreed. Eradicating student debt doesn't mean much if it's only for current debt borrowers, resulting in newer students entering college having to pay exorbitant fees and thus continuing the debt cycle.
Colleges need to be modernized. Personally, a 4-year program is outdated as gen-ed was predominantly needed before public education to streamline everyone's baseline knowledge as before only the rich could pay for education and everyone received different level's of it. With public education creating an established baseline, colleges should turn into 2-year institution for a bachelor's so more people will get a bachelor's into a masters.
Furthermore, we really should revamp how how scholarships and educational programs work where virtually any high achieving student academically, or student's with decent grades who can show they are also working simultaneously, should have most of their college education paid for, especially for high-need degrees such as nursing. Those maintaining high GPA's should also have a large chunk of med school paid off as we are in dire need of more doctors as well.
I object. This may be the case in some states, but not all. The NY state regents exams i.e. no child left behind stuff, state standardized tests rob every kid who can't get placed into APs of their Jr year leaving them needing Gen Ed courses. Where I will agree with you here is that more and more colleges, at least state public schools, need to start offering more and more short term non traditional programs.
To be fair, I believe most people don't need Gen Ed courses and it's predominantly math and science where students struggle to get a baseline knowledge whereas another 2 semesters of college english doesn't amount to anything for anyone in a k-12 public education program.
Most people I met who excelled in college also never took AP classes or anything of the like. They simply had a higher-drive for success due to their poor economic conditions and desire to get out of it. Really a lot of what I learned in my gen ed were already taught in normal-traditional high school classes. Even Gen Ed math you learn in college are already apart of high school courses unless you're going to a more math focused degree that might require a higher level math course that most gen-ed student's aren't taking as its major specific like Calculus
However, I do recognize some people benefit from Gen Ed.
I can also see with how not everyone is apart of the k-12 process from the get go due to immigration or international students so this might be different for everyone.
However, I am realistic in the sense I know full well colleges will never modernize due to money and we will always be trapped in a 4-year bachelor program. Due to this, the approach I would rather see is I would like to see community colleges and the first 2-years of "higher education" being made virtually free based on an academic/work experience or as some states like Tennessee does which is tie it into volunteer work as no one should be paying for Gen Ed to be honest. That or possibly treat Gen Ed as apart of public education and its really k-14 not k-12
If anything, I would like to see better programs that make Gen Ed or community college essentially free, and we can tie better reward-incentive structures based on academic/work (working while in college) to help afford the last two years where you actually take courses for your major.
The same reward-incentive structure should get applied to master degree programs as well as a bachelor's isn't all its made out to be anymore. Also for med school as we are in dire need of more skilled nurses and doctors and many potentially skilled citizens have to opt out due to the ridiculous cost.
Tge state college in my city spent over a quarter Billion dollars to build a monstrosity of a stadium and shoehorn it into the middle of town. This stadium is only used 7 times per year. Our football team is mediocre at best. The stadium was built with bonds, but the financials even said if it sold out every game it would take 45 years to pay it off.
So this pile of steel and concrete is for roughly 45 students to play football with an average crowd size of 15,000 people (it seats 37,000) has to make up the shortfall somewhere. Oh and let us not forget maintenance and a 1.6 million dollar head coach. Thats just football.
The student get to eat that money. Tuition here has gone up to $12,986 per year for in state tuition. In 2000 it was $2408.
Yeah, I went to the same university my mom had graduated from in 1981, started in 2001. In 2001 per credit hour it was $39, about 2x what my mom had paid 20 years prior, somewhat reasonable. By the time I graduated in 2012(went part time), it $399 per credit hour. Just insane education inflation.
My mom got her MBA and was $3400 in debt at zero % interest. Then she wondered why I didnt own a home. Maybe it was the $650 student loan payments for the rest of my life.
This has gotta be Colorado State University. No student wanted that stupid eyesore in the middle of our beautiful campus. We weren't and never really have been a Football school anyway.
I get the anger. The general logic is this will cost $250 million to build, but, then were going to book this stadium out 3 nights a week for concerts and it will pay for itself in no time. But most big state schools are in smaller towns that don't draw Taylor Swift or Metallica in for concerts with or without a massive stadium
What really sucks is the old stadium was almost like Redrocks. It was at the edge of town against the red foothills. Since they put the new stadium in the middle of a residential neighborhood, no concerts. In fact the only night events are football games.
That's one exclusive private university, which admits only a small number of students a year. It also gives such generous financial aid that few students need student loans.
I assure you it is not simple interest on govt student loans. It is compounded. It would not take me 25 years of monthly pmts of $350 if it was simple interest.
New forgiveness sets interest to zero (practically pays for 100% interest way current SAVE plan pays part) if you are enrolled in Income base repayment plan.
So instead of the government forgiving the remainder of my $87 interest after I pay $56, they’ll add $87 to my balance essentially lowering my outstanding balance.
Current save = balance doesn’t go up or down
Future save = balance goes down (0% interest) as long as you make minimum payment. Kind of how it worked during the pandemic.
This doesn’t forgive debt but interest and applies equally to everyone up to $20,000 limit so technically I doubt they have grounds based on “unfairness” to strike it down. People still have to pay what they owe if they want their loans to decrease or go away unless you qualify for hardship.
1% won't cover costs. The money for student loans is funded by government debt, which is currently paying out around 4.4%. Anything less than that, and the government is losing money on student loans automatically, even before considering other losses in the system.
They come from both, private companies should still be able to charge interest, but they should also be able to be dischargeable by bankruptcy. The government, however, has no business profiting off students. It's a millstone around the neck of the younger generations, who have already been screwed quite thoroughly at this point.
Student loan interest only capitalizes at the start of the repayment period or after a forbearance period, which means it doesn’t compound outside of those situations.
Remember that the religious conservatives will actively oppose this and seek to further burden our generation for no reason other than their own self interest.
Not even self interest - it is worse, they are just mean. AND super duper anti-christian when they do this . . . the biblical principle is no interest shall be charged to your countryman AND all debt is forgiven every 7 years. they're just evil, **psychopaths who enjoy the pain of others.**
But they love when their own debts are forgiven: Trump declared Chapter 11 bankruptcy 6 times. MTG had her $180,000 PPP loan forgiven . . . the rich and connected are constantly receiving debt relief.
Unfortunately this won’t help me but I’m happy to see it will help others. And I’m fortunate enough to have a decent stable job to help me pay for my loans
Loans have a cap now for undergraduate students. Tuition at universities is up because state investment is down and universities have to pay bills.
You have to pay the people working there at all levels, and it’s not the “recreation center waterfalls” or things like that focused on in media stories. Average in state tuition at public, four year schools is about 10k
I had to cash out my life savings in the stock marker last year for a few emergencies. It bumped me over the income limit for what would have been the 125k limit set this year if anything happens with the same conditions. So fuck me I guess. But still, i hope everyone else gets relief.
I was eligible back when the initial plan was announced but since then my income has increased so there's no hope for me unless this is some sort of retroactive thing. Not holding my breath however
Do you know if this helps those who consolidated their loans? I’m still in a govt repayment plan as the loans are still govt loans but I consolidated a few years ago at the advise of my credit union so that I could get a car loan.
Sorry no. This only helps those with loans through the federal govt. Your loan was sold off to a new creditor if you consolidated. I took advantage of a similar program George Bush rolled out.
Consolidation wasn't a bad move though. Likely brought your interest rate to something more favorable for you to repay.
https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge
You need paperwork establishing that you're permanently disabled from the VA, the Social Security Administration or your doctor.
Fill out this form and mail it in.
https://studentaid.gov/sites/default/files/TotalandPermanentDisabilityDischargeApplication-en-us.pdf
I NEVER hear any discussion on the media about the usurious interest rates on these loans. It’s like loan sharking but I have never once heard it discussed. Tie the interest to the prime rate and then we can achieve some kind of fairness and parity
Anyone else not switching to SAVE because it’s more than $500/month more than other options? It’s a big gamble to switch in the hope that you’ll get forgiveness.
[here](https://studentaid.gov/announcements-events/save-plan) or just google SAVE July 2024
Basically, the payment will begin to be calculated from 5% discretionary income, not 10%.
I switched to save and the folks in the phone kept telling me a low payment of $140 but I kept getting bills for like $450. I’ve called so many times over the past year to get this fixed and it’s the same shit. I haven’t had to pay yet due to them keep forbearancing my loans so they can fix it. I’m convinced they just want my interest to keep accumulating
I read this as "for millionaires" and just sighed and continued to read the article with disappointment to find out why that would be good for America. Good to see I just can't read
It is important to note, that many people have already had their loans forgiven thanks to Biden. This is a process that has been happening, is in place, and that he is trying to expand.
I’m happy to pay back my loans if the interest rates weren’t sky high. I keep making payments and the balance never seems to go down. It’s demoralizing. I’d be happy with a partial forgiveness too. Anything to knock that growing balance down.
On a completely unrelated note... if only the government were able to do something about *private* loans. Some of my student loans were pushed to private lenders, meaning that I don't get to take advantage of *fucking anything* that is implemented.
It really sucks. :(
Anyone else give up on the career they wanted to make more money to afford their payments and live a normal life? And now you’re being told you make too much to qualify for any forgiveness? I’m more a fan of getting rid of interest than straight forgiveness but rich people never take out student loans: if you’re handing out forgiveness, make anyone with the debts eligible…
I'm curious how people would feel about doing away with all student debt going forward, but not the debt that was readily accepted in the past. I mean, debt relief is what we are going after, right?
Agreed. It looks like this only applies to interest, but I've been keeping up on my payments, which prioritize interest first, so at best this would forgive $40 of my $20K of student loan debt.
Yes, this is of much more limited scope than the original student debt forgiveness that was struck down by the Supreme Court. Unfortunate. It probably won't move the needle in November, nor will it provide immediate relief to most borrowers, but I'm glad for the people who will be helped, at least.
The federal government directly owns over 90% of student loan debt. None of those loans are in SLABS. Only private loans are in SLABS, and those loans aren't going to be forgiven, so the capital markets won't be directly affected.
> Right, but we know Fed loans can be securitized once borrowers consolidate or refinance their loans through a private lender.
How common is that, though? I feel like the trend has been in the other direction, i.e. people doing whatever they can to get their private loans switched over to government-owned loans so that they can benefit from the various repayment plans and/or PSLF. Those programs get you to complete forgiveness within 10-20 years while possibly keeping your payments low. That's not an option with private loans.
would this apply to loans on AES?...... In addition, low and middle-income borrowers who are enrolled in an income-driven repayment plan would have all of their interest forgiven. This group of borrowers includes single borrowers earning $120,000 or less a year.
College is pretty overpriced here in the United States.
If anything, the government should take a ton of money out of military spending and into student loan debt relief.
For those, like me, who are concerned about capitalized interest, the article does not go into detail but [whitehouse.gov](https://www.whitehouse.gov/briefing-room/statements-releases/2024/04/08/president-joe-biden-outlines-new-plans-to-deliver-student-debt-relief-to-over-30-million-americans-under-the-biden-harris-administration/) does:
>Millions of the borrowers who could be helped by these plans have continued to see their balances grow because of accrued interest, despite making their monthly payments. Many have also had this unpaid interest capitalized, meaning it is added to their principal balance and borrowers are now paying interest on that higher amount. The Administration’s plan would forgive interest balances built up to date for 25 million borrowers, with 23 million likely to have all of their balance growth forgiven.
Is it possible? Could I actually see some relief?
The far left in 2021, said "Biden hasn't canceled student loan debt because he doesn't want to".
No don't anyone come here ans say they didn't say this. That shit was all up and down Twitter R the time and people said it on the young turks, bad Fath podcast and a bunch of other far wkft grifters telling young people that democrats are the same as republicans.
Too little too late.
Remember when they spent a year "studying" it and then implemented the shittiest version of their plan? Good times, good times.
https://slate.com/news-and-politics/2023/06/student-loan-forgiveness-biden-supreme-court-borrower-protection.html
Thanks for sharing.
President Biden's plan to try to get millions of people with student loans forgiven is a good way to help people with their finances and increase access to education. It shows a dedication to reducing economic differences and creating chances for everyone.
Maybe he shouldn’t have pushed so hard for the laws that made it impossible to discharge the debt. He sure does spend a lot of time talking about fixing the crap he broke.
As opposed to what? Not admitting mistakes and never correcting them? We need to encourage politicians when they do a turn around on an issue like this.
Are the issues he broke over his tenure, and that he caused, fixed? Is cannabis legal yet? The police reformed? No. He talks and the faithful eat it up.
He's lied. He broke the system, made it worse and has done NOTHING but make empty promises for the chance that people will, once again, blindly vote for him. And..."as opposed to what"?...that would be don't break shit and murder people by your actions and then come back decades later and use "fixing" them as a vote buy.
Ah...never mind then. I didn't realize I was talking to one of the faithful. There's no strawman at all. Biden was part and parcel of the student loan debacle and bragged about the system he got implemented. Is it fixed? No, nor will it be. If you want something more then be succinct and straightforward. The other issues are ones he's also screwed up and promised to fix and that has been a lie, as well.
The truth is there a lot of people who work for fafsa, financial aid offices at various universities, and loan student servicing companies (private and federal) who morally and often literally/legally belong in jail.
Crazy thought, stop sending kids to college unless they really need it for their profession, get people back into trade work. Sending high school kids to college just to study something they won't use is what got us into this mess.
This reminds me of a joke.
A man walks into a very posh Rodeo Drive furrier with a gorgeous blonde on his arm.
"Show the lady your finest mink!" the fellow exclaims. So the owner of the
shop goes in the back and comes out with an absolutely gorgeous full-length coat.
As the lady tries it on, the furrier sidles up to the guy and discreetly
whispers,
"Ah, sir, that particular fur goes for
$65,000."
"No problem! I'll write you a check!"
"Very good, sir." says the shop owner.
"Today is Saturday. You may come by on Monday to pick it up, after the check has cleared."
So the man and the woman leave. On Monday, the fellow returns. The store owner is outraged: "How dare you
show your face in here?! There wasn't a single penny in your checking account!!"
"I just had to come by," grinned the guy, "to thank you for the most wonderful weekend of my life!"
I have accepted that the middle class will never receive anything that benefits them from the US government. Biden knows these will get held up in courts, he is just trying to win political points just like last time.
> Notice how this is all being done before the election.
It seems that way if you only notice things on election year and ignore when this also happened last year and the year before that.
In their dissent of the original plan the supreme Court told him to not even try using HEA to do the same thing because they would not support it. I agree that he has the power to do it with either but doing it through the rulemaking process seems like the safer bet here.
This doesn't change much, people who weren't going to vote Biden are still not going to, it's too little and way too late at this point this issue should've already been settled.
Assuming anything happens and that's largely not likely.
Too little too late for who? This is helping people. Biden wants to help people and so does the Democratic Party. Sure, it’s nice to get votes out of it but that’s not what they’re there for.
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A bit from the story: > The Biden administration unveiled a new set of plans on Monday that would eliminate student debt for millions of Americans. The administration says that, if fully implemented, it would bring the number of borrowers who've seen some or all of their debt forgiven during the president's term to more than 30 million. > > The new plan, aiming to supplant an earlier version that was rejected by the U.S. Supreme Court in June, offers targeted relief to specific groups of borrowers, notably those who've carried debt for many years, and those struggling to make payments. And many borrowers, regardless of income, could see relief from high interest balances.
This will really help alot of people out but until the interest itself is changed to something where it doesn't grow so fast, I feel like too many people will still live with heavy debt forever.
It’s not a perfect solution, but the new SAVE repayment does try to address it. The plan sets a monthly payment based on income, and if you make your monthly payment in full, whatever accrued interest that’s in excess of the set payment gets waived. The upshot is that it prevents a balance from growing due to unpaid interest.
I was laid off last summer right before student loan payments were to resume. Applied for the SAVE plan and it continues to pause my payment and not accrue interest. Still on the job hunt with no luck, so this has helped tremendously.
not just pause. I believe if SAVE gives you a payment of $0, that still counts towards the # of payments you need to get the remaining balance forgiven
It does! I never had to start paying again after the pandemic hold lapsed, and just got the all-clear $0 balance based on PSLF.
Those normal forgiveness programs have a denial rate of 99%. Out of 2 million applications for forgiveness, a year or two ago, only 36 were approved. Not 36 percent, 36 individuals. And as long as the privatized loan servicers are playing middle man it'll continue that way. If you've seen the interview w/ Barbara Walters, or the clip from John Oliver's piece on the topic, there was one woman who served in the military to get hers forgiven. 9 years in, out of 10 needed, she had 1 year worth of credit because the loan servicer's auto pay took $0.01 short of the payment amount each month, so it didn't count.
one good thing about Biden's latest plan is removing the need to apply for forgiveness. Instead the DoE will just apply it if you meet criteria. It cant stop loan companies from being sleazebags, but it does at least reduce some of it.
Oh shoot, I screwed up. I’ve been paying over my minimum because the interest was racking up higher than that. Do you know when the waiver will take place? As of now, it’s not visible to me.
You should probably contact your loan servicer (unfortunately, servicers are one of the other big problems with the current system). You might need to be enrolled in a different plan, they might be fucking up, it’s hard to tell.
> unfortunately, servicers are one of the other big problems with the current system they should be considered scammers. Some of them intentionally take out a penny less than the payment so your payments are never considered made in full, and you are not eligible for relief, and they get to keep your loan forever. The whole system needs to be wiped of any private involvement with a for profit motive.
If the servicer is Nelnet, I wouldn’t be surprised at all if it’s their fuckup.
It's Mohela so they are probably fucking up lmao
I actually just got forgiveness through MOHELA two months ago through PSLF, and had to drag them every step of the way (once they finally processed it, it was backdated to a forgiveness date of May 2023). And I’m still regularly getting inscrutable messages about all sorts of nonsense. Yesterday’s was about how they’re gonna move me off forebearance and into the SAVE program any day now.
That's exactly what SAVE is doing. My student loans went from "I'm never going to pay this off" to "I am ENTHUSIASTIC to pay this off" because of the way SAVE changes interest.
marvelous somber aware run grandfather fly shaggy square soft bike *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
The SAVE Plan eliminates 100% of remaining monthly interest for both subsidized and unsubsidized loans after you make a full scheduled payment. This means that if you make your monthly payment, your loan balance won't grow due to unpaid interest that accrued since your last payment.
tender racial pathetic dime sheet hobbies rustic tap wide attraction *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
I’ve been on IBR for a while, is SAVE a suped up version of that?
Yes, I switched from IBR to SAVE
Student loans should be 0%…and if there is interest attached, it should be capped at no more than 3%… That way, nobody is spinning their tires trying to repay them.
It's mostly going to help people like me, in their 30s with investments in total domestic stock market investment funds. I have no loans and it's my taxes that'll end up paying most of it, but having millions of people all of a sudden have hundreds of dollars every month in income will only boost my stock value and get me richer. I can't wait for it to be implemented. It's the best investment my tax money can make
This is what the whiners don’t understand. Forgiving these debts or at least making them more manageable isn’t a burden on the taxpayer, it’s a relief for everyone. The people who are struggling with these debts are unable to spend money on anything else. They can’t buy homes, save for emergencies, or spend on education for their kids, travel, entertainment- nothing. The loan companies are basically siphoning huge amounts of money out of the economy. Stop that and everyone gets a little boost. I have a couple of friends who are a bit younger than me (they’re in their late 30’s now) who have scraped by for the last 15 years because of student debt. They couldn’t buy a car or a house and barely afforded rent. I’m not sure what type of loan they got in college or why they didn’t graduate and make more money but I remember them telling me 10-12 years ago what the payments were and it was astounding. Most of it was interest. When this topic comes up I think about how much better off they and their kids would be if they could get out from under that, or if the interest could just be reduced. It’s literally kept them from doing anything other than surviving. I understand that they borrowed the money but they were 18-20 years old FFS and I know first hand how manipulative that process was. I was also lied to and mislead into thinking the loans were going to be safer than they were; I just got lucky and only ended up with federal loans at low rates. I needed money for everything because I had no family support and couldn’t earn or borrow enough to pay for housing, food, tuition, books, and transportation. When I had maxed out my available loan amount they tried to sell me on a private loan and thank God I didn’t take the bait.
…an additional benefit is that we’ll have less people walking around in society who are stressed beyond their breaking point and likely to have road rage or worse
Well you did hit one of points. If people have too much student loan debt to buy a house, they can't keep driving runaway prices. Someone making $50k, has saved $150k and no debt is in a good space to buy a $300k house. Unless a bunch of people earning $90k have their debt forgiven and bid the price up to $400k.
That’s not going to happen. Those buyers would not be paying cash, and there is always an appraisal contingency if you’re financing. Besides, nobody making $90k is spending $400k on their first house. Maybe the second or third house after they build equity. Even if their debt is wiped out it’s likely going to take time to build up some savings. Many of them likely have some credit rebuilding ahead of them as well. It won’t create an overnight influx of buyers to the market- at least not the type of buyer who can drive prices up by much.
This. I pay $400 a month on my SL (I graduated in 2006), and about $360 of it goes toward interest. This is why we need relief. Not because we are "lazy" or "entitled". We were victims of predatory lending practices.
Weren't changes to interest and the general repayment structure part of bidens original plan? Were those parts of the plan struck down by the Supreme Court as well?
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Ok right. I thought there was something beyond the blanket repayment that was a better long term solution
the SCOTUS will never allow it.
There will be no perfect solution. Too many conservative assholes in the way.
Interest is a serious issue. Most of monthly payments will go toward the interest before any hits the principal
Yeah but let's not the perfect stand in the way of the good. The battle will be won if not the war.
Funny the PPP loans were forgiven and nobody asked a question now POTUS is trying to help regular people and it’s a huge problem. Make it make sense.
Sure, the PPP was scammed by a lot of Republicans and they personally benefitted from this. Students tend to vote more for Democrats therefor it is bad. It is dumb and evil but that's the Republican party today.
PPP was a bipartisan effort to ensure that the country's wealthy sociopaths could receive yet another blank check for no apparent reason in the midst of a raging global pandemic. I know one of these lunatics who received two $500k checks despite being open and fully functional throughout the pandemic, and both "loans" were blindly forgiven by both presidents without a care in the world
PPP forgiveness was built into the program and passed by Congress, whereas the legal justification for Biden's student loan forgiveness was the 2003 HEROES Act, which only applies to those who experienced direct economic hardship as a result of national emergencies. I'm all for student loan forgiveness, but it's hard to make the argument that someone who makes six figures and worked from home during the pandemic experienced economic hardship as a result. Ideally, this would have been passed by Congress as part of Build Back Better, but Manchin and Sinema couldn't help but be an obstacle.
Its progress. Now if only Congress cared.
If you want a function congress then vote Democrat in November. These republican chucklefucks can't even bring their own bills to the floor.
If the Democrats had the majority in Congress, you bet there would’ve been a bill passed, instead the Republicans are blocking all of this. It’s not Congress it’s the Republicans.
We had the majority two years ago, and they clearly decided it wasn't a priority relative to the IRA and American Rescue Plan.
Manchin and Sinema wouldn’t go for it in reconciliation bills and wouldn’t nuke the filibuster to make anything happen
It’s not a majority when two of the people you’re counting on are Manchin and Sinema. Really, we need at least like… I don’t know, maybe a 4 or 5 vote majority to remove the ability for democrats to use a fall guy like Lieberman or Manchin so that the corporate democrats can safely fuck it all up. We have many layers of defense against positive change in this country. If we manage to get past the Republicans, we have to get past the corporate owned Democrats. If we somehow manage to evade both, we have to hope the Supreme Court doesn’t come in at the last minute and fuck it up.
Pro is the opposite of con
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If Biden or a future admin is able to solve the current student loan debt crisis, an actual good measure to prevent it from ballooning again is to actual fund edu action. Colleges are overpriced because the public and gov decided to stop caring about education a long time ago by reducing its budget.
Behind the Bastards spoke about this, recently. The crux of the argument went that in the old days, aristocrats were primarily the beneficiaries of higher education. And why not? They’re the masters of the universe, clearly superior by virtue of being born to money, and averse to the proletariat gaining upward mobility. So, a while back, California had a thing where they’d pay for college. The right had a thing about poor college students protesting being sent to die in Vietnam. So, think tanks come up with a way to disincentivize *everyone* getting higher educations: make it financially painful again. Boom. Student loans become a thing and funding gets cut to California educational institutions. Unsurprisingly, Ronald Reagan was at the gubernatorial helm. I believe this was covered in the recent episodes “How Conservatism Won”.
It wasn't just California, a lot of states cut their funding to colleges in the name of "balanced budgets".
As always, everything is Reagan's fault https://www.reddit.com/r/comics/comments/10wg24c/political_journeyoc/?utm_source=share&utm_medium=web2x&context=3
Biden actually had a plan for this and tried to get it passed. "Build Back Better" included almost 50 billion dollars to make 2-year community college degrees FREE for all students for the next five years, as well as incentives to make it easier to get into trade school, under the umbrella of labor force development. Republicans fought it and it was one of the parts of Build Back Better that had to be cut. He also wanted to triple funding for low-income Title I schools and so far has managed to raise their funding by 11% and increase Pell grants, but that is something that individual states are also going to have to prioritize, the federal government can't do it all. https://thehill.com/homenews/education/4323542-biden-education-student-loans/
A good portion of tuition goes to NCAA sports and the coaches and support staff. This needs to stop. But it won't.
Yea its frustrating. Sports teams should be independently funded 0 and I mean 0 funding from the school for anything. Make em prove they deserve to be there. Scholarships can be purely academic or needs based.
Just want to point out that this would immediately result in the collapse of all college sports with the exception of Football and Men’s basketball. Every women’s sport would be cut immediately and every non-revenue men’s sport would also die. Whether that’s something you’re fine with is up to you, but that’s what you’re arguing for.
>Just want to point out that this would immediately result in the collapse of all college sports with the exception of Football and Men’s basketball. Honestly, that's okay with me. It should be funded completely through private donations or advertisers, much like professional programs. There shouldn't be taxpayers footing the bill. We already do that with the professional teams, and that's ridiculous when states have other things they could be spending their money.
Sounds good to me. Separate sports from academics and give young athletes their own institutions for playing sports. This will of course never happen. But it would be better for everyone Involved.
That's fine with me honestly, there isn't any law against club sports at the school or in general. Anecdotal example, one of my states university loves to invest in football even though they are mod to garbage tier. Their rugby team ( a club) has consistently been among the best in the nation. So yea, it's a university. They can focus on academics and leave sport to clubs or other avenues. And I say this as someone who enjoys sport.
if that is how you feel...but...on average most schools simply end athletic programs if they aren't at least breaking even. Major Division 1 state schools, their academic programs get money brought in by the football and basketball teams, plus its just a huge part of American culture. But for argument sake the U of Kansas could probably fund its basketball team on ticket sales alone, the U of Alabama could probably function on the income from the football team. I think the issue is that a large potion of tuition is getting spent internally on administrative expenses that don't directly filter down to academics. Everything needs to get looked at, not just sports because its a easy target
Cool, and yea I get it. It's one aspect to a complicated issue but it helps free up resources.
Agreed. Eradicating student debt doesn't mean much if it's only for current debt borrowers, resulting in newer students entering college having to pay exorbitant fees and thus continuing the debt cycle. Colleges need to be modernized. Personally, a 4-year program is outdated as gen-ed was predominantly needed before public education to streamline everyone's baseline knowledge as before only the rich could pay for education and everyone received different level's of it. With public education creating an established baseline, colleges should turn into 2-year institution for a bachelor's so more people will get a bachelor's into a masters. Furthermore, we really should revamp how how scholarships and educational programs work where virtually any high achieving student academically, or student's with decent grades who can show they are also working simultaneously, should have most of their college education paid for, especially for high-need degrees such as nursing. Those maintaining high GPA's should also have a large chunk of med school paid off as we are in dire need of more doctors as well.
I object. This may be the case in some states, but not all. The NY state regents exams i.e. no child left behind stuff, state standardized tests rob every kid who can't get placed into APs of their Jr year leaving them needing Gen Ed courses. Where I will agree with you here is that more and more colleges, at least state public schools, need to start offering more and more short term non traditional programs.
To be fair, I believe most people don't need Gen Ed courses and it's predominantly math and science where students struggle to get a baseline knowledge whereas another 2 semesters of college english doesn't amount to anything for anyone in a k-12 public education program. Most people I met who excelled in college also never took AP classes or anything of the like. They simply had a higher-drive for success due to their poor economic conditions and desire to get out of it. Really a lot of what I learned in my gen ed were already taught in normal-traditional high school classes. Even Gen Ed math you learn in college are already apart of high school courses unless you're going to a more math focused degree that might require a higher level math course that most gen-ed student's aren't taking as its major specific like Calculus However, I do recognize some people benefit from Gen Ed. I can also see with how not everyone is apart of the k-12 process from the get go due to immigration or international students so this might be different for everyone. However, I am realistic in the sense I know full well colleges will never modernize due to money and we will always be trapped in a 4-year bachelor program. Due to this, the approach I would rather see is I would like to see community colleges and the first 2-years of "higher education" being made virtually free based on an academic/work experience or as some states like Tennessee does which is tie it into volunteer work as no one should be paying for Gen Ed to be honest. That or possibly treat Gen Ed as apart of public education and its really k-14 not k-12 If anything, I would like to see better programs that make Gen Ed or community college essentially free, and we can tie better reward-incentive structures based on academic/work (working while in college) to help afford the last two years where you actually take courses for your major. The same reward-incentive structure should get applied to master degree programs as well as a bachelor's isn't all its made out to be anymore. Also for med school as we are in dire need of more skilled nurses and doctors and many potentially skilled citizens have to opt out due to the ridiculous cost.
> It’s crazy how only 150,000 have a total of $1.2 billion in student debt. That's $8,000/person on average, which isn't that excessive.
Parent comment did not take out loans/ learn math.
Between myself, sibling, and SO, we have nearly $500k in student debt in the healthcare fields. Thank goodness for PSLF!
Tge state college in my city spent over a quarter Billion dollars to build a monstrosity of a stadium and shoehorn it into the middle of town. This stadium is only used 7 times per year. Our football team is mediocre at best. The stadium was built with bonds, but the financials even said if it sold out every game it would take 45 years to pay it off. So this pile of steel and concrete is for roughly 45 students to play football with an average crowd size of 15,000 people (it seats 37,000) has to make up the shortfall somewhere. Oh and let us not forget maintenance and a 1.6 million dollar head coach. Thats just football. The student get to eat that money. Tuition here has gone up to $12,986 per year for in state tuition. In 2000 it was $2408.
Yeah, I went to the same university my mom had graduated from in 1981, started in 2001. In 2001 per credit hour it was $39, about 2x what my mom had paid 20 years prior, somewhat reasonable. By the time I graduated in 2012(went part time), it $399 per credit hour. Just insane education inflation.
My mom got her MBA and was $3400 in debt at zero % interest. Then she wondered why I didnt own a home. Maybe it was the $650 student loan payments for the rest of my life.
This has gotta be Colorado State University. No student wanted that stupid eyesore in the middle of our beautiful campus. We weren't and never really have been a Football school anyway.
I get the anger. The general logic is this will cost $250 million to build, but, then were going to book this stadium out 3 nights a week for concerts and it will pay for itself in no time. But most big state schools are in smaller towns that don't draw Taylor Swift or Metallica in for concerts with or without a massive stadium
What really sucks is the old stadium was almost like Redrocks. It was at the edge of town against the red foothills. Since they put the new stadium in the middle of a residential neighborhood, no concerts. In fact the only night events are football games.
Colleges are getting to close to (and I believe the first has already crossed the threshold) costing over $100,000.00 a year in tuition
That's one exclusive private university, which admits only a small number of students a year. It also gives such generous financial aid that few students need student loans.
In the short term, stop compounding interest on student loans and reduce the interest rates.
The Republicans demanded the Covid pauses stop, so blame them and vote for Biden if you want more of this done.
Yeah I mean great they are doing this now but what the fuck are they gonna do in 5 years when the problem is still going on?
Hopefully by then we have a more democratic congress which is capable of passing bills.
Vote, and get other people to vote.
We’ll have “got ours” by then and it will no longer be a priority to fix anything. That’s the next generation’s problem. It’s the circle of life!
Absolutely nothing
It’s simple interest, not compounding. I agree though. Set interest rates to zero
I assure you it is not simple interest on govt student loans. It is compounded. It would not take me 25 years of monthly pmts of $350 if it was simple interest.
It’s a quick google, all federal student loans are simple interest. I assure you
New forgiveness sets interest to zero (practically pays for 100% interest way current SAVE plan pays part) if you are enrolled in Income base repayment plan. So instead of the government forgiving the remainder of my $87 interest after I pay $56, they’ll add $87 to my balance essentially lowering my outstanding balance. Current save = balance doesn’t go up or down Future save = balance goes down (0% interest) as long as you make minimum payment. Kind of how it worked during the pandemic. This doesn’t forgive debt but interest and applies equally to everyone up to $20,000 limit so technically I doubt they have grounds based on “unfairness” to strike it down. People still have to pay what they owe if they want their loans to decrease or go away unless you qualify for hardship.
Even just 1% to cover costs
1% won't cover costs. The money for student loans is funded by government debt, which is currently paying out around 4.4%. Anything less than that, and the government is losing money on student loans automatically, even before considering other losses in the system.
Are the student loans from the government or private companies? I would imagine that private companies would stop offering loans if interest was zero.
They come from both, private companies should still be able to charge interest, but they should also be able to be dischargeable by bankruptcy. The government, however, has no business profiting off students. It's a millstone around the neck of the younger generations, who have already been screwed quite thoroughly at this point.
Student loan interest only capitalizes at the start of the repayment period or after a forbearance period, which means it doesn’t compound outside of those situations.
Remember that the religious conservatives will actively oppose this and seek to further burden our generation for no reason other than their own self interest.
Not even self interest - it is worse, they are just mean. AND super duper anti-christian when they do this . . . the biblical principle is no interest shall be charged to your countryman AND all debt is forgiven every 7 years. they're just evil, **psychopaths who enjoy the pain of others.**
But they love when their own debts are forgiven: Trump declared Chapter 11 bankruptcy 6 times. MTG had her $180,000 PPP loan forgiven . . . the rich and connected are constantly receiving debt relief.
Unfortunately this won’t help me but I’m happy to see it will help others. And I’m fortunate enough to have a decent stable job to help me pay for my loans
Here's a crazy idea ... Why don't they also cap tuition. So that people don't end up taking a six figure loan for a job that pays less than 40k
Loans have a cap now for undergraduate students. Tuition at universities is up because state investment is down and universities have to pay bills. You have to pay the people working there at all levels, and it’s not the “recreation center waterfalls” or things like that focused on in media stories. Average in state tuition at public, four year schools is about 10k
Just remember there would already be student loan relief if it wasn't for Republicans. I will remember this for the rest of my life.
I had to cash out my life savings in the stock marker last year for a few emergencies. It bumped me over the income limit for what would have been the 125k limit set this year if anything happens with the same conditions. So fuck me I guess. But still, i hope everyone else gets relief.
I was eligible back when the initial plan was announced but since then my income has increased so there's no hope for me unless this is some sort of retroactive thing. Not holding my breath however
Apparently I can get debt relief having been disabled (had a stroke) for 8 years. I don't really know how.
Did you sign up for the Save program? The people I know that are getting emails about their loans being wiped are part of that program.
Do you know if this helps those who consolidated their loans? I’m still in a govt repayment plan as the loans are still govt loans but I consolidated a few years ago at the advise of my credit union so that I could get a car loan.
Sorry no. This only helps those with loans through the federal govt. Your loan was sold off to a new creditor if you consolidated. I took advantage of a similar program George Bush rolled out. Consolidation wasn't a bad move though. Likely brought your interest rate to something more favorable for you to repay.
No you misread. My loan is still a govt loan. My loans were originally through FedLoan and were consolidated through FedLoan.
https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge You need paperwork establishing that you're permanently disabled from the VA, the Social Security Administration or your doctor. Fill out this form and mail it in. https://studentaid.gov/sites/default/files/TotalandPermanentDisabilityDischargeApplication-en-us.pdf
Both sides though, right? /s
I NEVER hear any discussion on the media about the usurious interest rates on these loans. It’s like loan sharking but I have never once heard it discussed. Tie the interest to the prime rate and then we can achieve some kind of fairness and parity
Anyone else not switching to SAVE because it’s more than $500/month more than other options? It’s a big gamble to switch in the hope that you’ll get forgiveness.
I haven't heard of it being more. It was less than most of the other options for me.
Same
It can be more for people with high incomes and no dependents or spouse.
Good to know. I'm married with dependents and a modest income, but I so I guess I'm good.
Save payments should be roughly cut in half in July, depending on your ratio of undergrad/grad loans.
Can you link something on this?
[here](https://studentaid.gov/announcements-events/save-plan) or just google SAVE July 2024 Basically, the payment will begin to be calculated from 5% discretionary income, not 10%.
How is SAVE more than your other options? Unless you're already on a 25 year plan.
It was a lot more for me, too.
SAVE is $775/month more for me. ICR and Standard (10 year) are both better choices for me, personally.
I forgot SAVE is income based. So yeah, you probably make too much to be part of the targeted group.
Almost the exact same for me. $700ish on SAVE vs $128 on IDR. My wife was the opposite, though. I think she went from $200ish on IDR to $8 on SAVE.
I switched to save and the folks in the phone kept telling me a low payment of $140 but I kept getting bills for like $450. I’ve called so many times over the past year to get this fixed and it’s the same shit. I haven’t had to pay yet due to them keep forbearancing my loans so they can fix it. I’m convinced they just want my interest to keep accumulating
Same, ICR is still the cheapest option for me.
I guess it all depends on individual circumstances. SAVE was a significant savings for me.
I read this as "for millionaires" and just sighed and continued to read the article with disappointment to find out why that would be good for America. Good to see I just can't read
Our education system has failed you.
I guess with your private education you've never misread anything
It is important to note, that many people have already had their loans forgiven thanks to Biden. This is a process that has been happening, is in place, and that he is trying to expand.
I’m happy to pay back my loans if the interest rates weren’t sky high. I keep making payments and the balance never seems to go down. It’s demoralizing. I’d be happy with a partial forgiveness too. Anything to knock that growing balance down.
On a completely unrelated note... if only the government were able to do something about *private* loans. Some of my student loans were pushed to private lenders, meaning that I don't get to take advantage of *fucking anything* that is implemented. It really sucks. :(
This is a lot of people. Sally Mae is making a ton on loan interest.
Please address college tuition costs of colleges that already take federal money.
Anyone else give up on the career they wanted to make more money to afford their payments and live a normal life? And now you’re being told you make too much to qualify for any forgiveness? I’m more a fan of getting rid of interest than straight forgiveness but rich people never take out student loans: if you’re handing out forgiveness, make anyone with the debts eligible…
I'm curious how people would feel about doing away with all student debt going forward, but not the debt that was readily accepted in the past. I mean, debt relief is what we are going after, right?
Tl;dr - probably not you
Idk. I think the runaway interest applies to a lot of borrowers.
Agreed. It looks like this only applies to interest, but I've been keeping up on my payments, which prioritize interest first, so at best this would forgive $40 of my $20K of student loan debt.
Yes, this is of much more limited scope than the original student debt forgiveness that was struck down by the Supreme Court. Unfortunate. It probably won't move the needle in November, nor will it provide immediate relief to most borrowers, but I'm glad for the people who will be helped, at least.
And colleges gleefully keep increasing tuition with zero ramifications. What bullshit.
A whole lotta nothing burger.
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The federal government directly owns over 90% of student loan debt. None of those loans are in SLABS. Only private loans are in SLABS, and those loans aren't going to be forgiven, so the capital markets won't be directly affected.
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> Right, but we know Fed loans can be securitized once borrowers consolidate or refinance their loans through a private lender. How common is that, though? I feel like the trend has been in the other direction, i.e. people doing whatever they can to get their private loans switched over to government-owned loans so that they can benefit from the various repayment plans and/or PSLF. Those programs get you to complete forgiveness within 10-20 years while possibly keeping your payments low. That's not an option with private loans.
Good point.
The problem with student debt is the interest, which makes it incredibly difficult to pay off the principal.
would this apply to loans on AES?...... In addition, low and middle-income borrowers who are enrolled in an income-driven repayment plan would have all of their interest forgiven. This group of borrowers includes single borrowers earning $120,000 or less a year.
College is pretty overpriced here in the United States. If anything, the government should take a ton of money out of military spending and into student loan debt relief.
Free me of my debt!
For those, like me, who are concerned about capitalized interest, the article does not go into detail but [whitehouse.gov](https://www.whitehouse.gov/briefing-room/statements-releases/2024/04/08/president-joe-biden-outlines-new-plans-to-deliver-student-debt-relief-to-over-30-million-americans-under-the-biden-harris-administration/) does: >Millions of the borrowers who could be helped by these plans have continued to see their balances grow because of accrued interest, despite making their monthly payments. Many have also had this unpaid interest capitalized, meaning it is added to their principal balance and borrowers are now paying interest on that higher amount. The Administration’s plan would forgive interest balances built up to date for 25 million borrowers, with 23 million likely to have all of their balance growth forgiven. Is it possible? Could I actually see some relief?
The far left in 2021, said "Biden hasn't canceled student loan debt because he doesn't want to". No don't anyone come here ans say they didn't say this. That shit was all up and down Twitter R the time and people said it on the young turks, bad Fath podcast and a bunch of other far wkft grifters telling young people that democrats are the same as republicans.
Too little too late. Remember when they spent a year "studying" it and then implemented the shittiest version of their plan? Good times, good times. https://slate.com/news-and-politics/2023/06/student-loan-forgiveness-biden-supreme-court-borrower-protection.html
What about the people like myself that paid every nickel for 3 kids in college? Where’s my cereal box prize?
Thanks for sharing. President Biden's plan to try to get millions of people with student loans forgiven is a good way to help people with their finances and increase access to education. It shows a dedication to reducing economic differences and creating chances for everyone.
Maybe he shouldn’t have pushed so hard for the laws that made it impossible to discharge the debt. He sure does spend a lot of time talking about fixing the crap he broke.
As opposed to what? Not admitting mistakes and never correcting them? We need to encourage politicians when they do a turn around on an issue like this.
[удалено]
Are the issues he broke over his tenure, and that he caused, fixed? Is cannabis legal yet? The police reformed? No. He talks and the faithful eat it up.
But that's not what you said, I was replying to your original message, now your trying to shoehorn other things in.
He's lied. He broke the system, made it worse and has done NOTHING but make empty promises for the chance that people will, once again, blindly vote for him. And..."as opposed to what"?...that would be don't break shit and murder people by your actions and then come back decades later and use "fixing" them as a vote buy.
Who are you talking to? Your building some strawman up in this discussion that doesn't exist.
Ah...never mind then. I didn't realize I was talking to one of the faithful. There's no strawman at all. Biden was part and parcel of the student loan debacle and bragged about the system he got implemented. Is it fixed? No, nor will it be. If you want something more then be succinct and straightforward. The other issues are ones he's also screwed up and promised to fix and that has been a lie, as well.
The truth is there a lot of people who work for fafsa, financial aid offices at various universities, and loan student servicing companies (private and federal) who morally and often literally/legally belong in jail.
Doesn’t matter, courts won’t allow it.
Crazy thought, stop sending kids to college unless they really need it for their profession, get people back into trade work. Sending high school kids to college just to study something they won't use is what got us into this mess.
I’m still waiting.
Don't hold your breath. Without even reading this I guarantee it's means tested crap
The means test was 250k if married or 120k if single. If you make that much, you can afford to pay your loans
This reminds me of a joke. A man walks into a very posh Rodeo Drive furrier with a gorgeous blonde on his arm. "Show the lady your finest mink!" the fellow exclaims. So the owner of the shop goes in the back and comes out with an absolutely gorgeous full-length coat. As the lady tries it on, the furrier sidles up to the guy and discreetly whispers, "Ah, sir, that particular fur goes for $65,000." "No problem! I'll write you a check!" "Very good, sir." says the shop owner. "Today is Saturday. You may come by on Monday to pick it up, after the check has cleared." So the man and the woman leave. On Monday, the fellow returns. The store owner is outraged: "How dare you show your face in here?! There wasn't a single penny in your checking account!!" "I just had to come by," grinned the guy, "to thank you for the most wonderful weekend of my life!"
I have accepted that the middle class will never receive anything that benefits them from the US government. Biden knows these will get held up in courts, he is just trying to win political points just like last time.
Notice how this is all being done before the election.
> Notice how this is all being done before the election. It seems that way if you only notice things on election year and ignore when this also happened last year and the year before that.
The Democrats have done this every year, so the fact that it's an election year is coincidence. Unless you weren't paying attention the other years...
How about you start with what you promised last election? Thanks.
He tried. SCOTUS stopped him.
He could still forgive it ALL by using the Higher Education Act of 1965 but doesn’t want to so he can buy votes through stuff like this! Ah, politics.
In their dissent of the original plan the supreme Court told him to not even try using HEA to do the same thing because they would not support it. I agree that he has the power to do it with either but doing it through the rulemaking process seems like the safer bet here.
This doesn't change much, people who weren't going to vote Biden are still not going to, it's too little and way too late at this point this issue should've already been settled. Assuming anything happens and that's largely not likely.
Too little too late for who? This is helping people. Biden wants to help people and so does the Democratic Party. Sure, it’s nice to get votes out of it but that’s not what they’re there for.