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09-30-2022, 06:09 AM
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Location: Honolulu, HI
20,725 posts, read 6,542,445 times
Reputation: 19328
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Spread the news for those who will no longer qualify, one lawsuit of many.
Quote:
CNN — The Biden administration scaled back eligibility for its student loan forgiveness plan Thursday, the same day six Republican-led states sued President Joe Biden in an effort to block his student loan forgiveness plan from taking effect.
Borrowers whose federal student loans are guaranteed by the government but held by private lenders will now be excluded from receiving debt relief. Around 770,000 people will be affected by the change, according to an administration official.
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https://www.cnn.com/2022/09/29/polit...uit/index.html |
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09-30-2022, 08:02 AM
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Location: Shawnee-on-Delaware, PA
6,978 posts, read 6,065,352 times
Reputation: 13813
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Quote:
Originally Posted by Rocko20
Spread the news for those who will no longer qualify, one lawsuit of many.
[sub-quote]
...Around 770,000 people will be affected by the change, according to an administration official.
[/sub-quote]
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The original number was around 43 million, so subtracting 770,000 brings it down to 42.2 million people still eligible for loan forgiveness.
I understand why borrowers are nervous, since we are heading into a deepening recession and they are worried about their jobs and their futures, but there has to be a better way to handle that problem. Non-student loan borrowers are also nervous about their futures, and they are being asked to subsidize their neighbors and former high school classmates. |
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09-30-2022, 08:52 AM
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9,452 posts, read 5,342,241 times
Reputation: 18500
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Quote:
Originally Posted by jtab4994
The original number was around 43 million, so subtracting 770,000 brings it down to 42.2 million people still eligible for loan forgiveness.
I understand why borrowers are nervous, since we are heading into a deepening recession and they are worried about their jobs and their futures, but there has to be a better way to handle that problem. Non-student loan borrowers are also nervous about their futures, and they are being asked to subsidize their neighbors and former high school classmates.
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Yes, but to be fair, for these borrowers, it was made clear that you wouldn’t be eligible for forgiveness relief without consolidating. I knew a lot of people who did not want to consolidate and they were aware that meant they could not get forgiveness. Since the last of these loans was taken out 12 years ago, there aren’t many of those people left in the overall scheme of things. The standard repayment terms without consolidation is 10 years. The people who still have outstanding loans are the people who took advantage of IBR or otherwise had deferrals due to job loss. |
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09-30-2022, 10:33 AM
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5,309 posts, read 2,591,636 times
Reputation: 12537
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Biden is already walking back the student loan program. He knows there are too many legal challenges.
https://www.forbes.com/sites/madelin...h=3fa6492b6030
https://www.politico.com/news/2022/0...cerns-00059522
https://abcnews.go.com/Politics/bide...ry?id=90726728
Quote:
The Biden administration scaled back eligibility for its student loan forgiveness plan Thursday, the same day six Republican-led states sued President Joe Biden in an effort to block his student loan forgiveness plan from taking effect.
Borrowers whose federal student loans are guaranteed by the government but held by private lenders will now be excluded from receiving debt relief. Around 770,000 people will be affected by the change, according to an administration official.
The Department of Education initially said these loans, many of which were made under the former Federal Family Education Loan program and Federal Perkins Loan program, would be eligible for the one-time forgiveness action as long as the borrower consolidated his or her debt into the federal Direct loan program.
On Thursday, the department reversed course. According to its website, privately held federal student loans must have been consolidated before Sept. 29 in order to be eligible for the debt relief.
Borrowers with privately held federal student loans who have not consolidated yet are currently out of luck, though the Department of Education said it "is assessing whether there are alternative pathways" to provide relief.
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https://www.kmbc.com/article/biden-a...plan/41450554#
What a mess! |
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09-30-2022, 10:56 AM
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1,046 posts, read 393,569 times
Reputation: 1949
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It's done to buy votes for the current administration which is ridiculous. It needs to be done more uniformly than only to help current borrowers. And there's no legislation to help reduce tuition costs going forward.
What about people that just paid off their student loans?
How about students that boldly sign up for higher loans because they expect to get money back.
Never make promises that are poorly conceived.
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09-30-2022, 11:06 AM
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8,153 posts, read 3,125,567 times
Reputation: 5713
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Quote:
Originally Posted by MKTwet
I have no problem with loan forgiveness but the only problem is timing and selection. It's no longer a democratic process if it's targeted.
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What do you mean? We democratically elected representatives and they will make the rules. That's what we elected them to do.
In terms of targeting, this is no different than the 2020 handouts that were also targeted.... |
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09-30-2022, 11:08 AM
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8,153 posts, read 3,125,567 times
Reputation: 5713
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Quote:
Originally Posted by MKTwet
It's done to buy votes for the current administration which is ridiculous.
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Perhaps, but there's a precedent set to buy votes in this manner by the previous administration.
There's a real economic impact, however. |
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09-30-2022, 11:09 AM
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8,153 posts, read 3,125,567 times
Reputation: 5713
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Quote:
Originally Posted by MKTwet
It needs to be done more uniformly than only to help current borrowers.
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You're right. It would be good to "fix" the higher education system for future students as well. |
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09-30-2022, 12:24 PM
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10,895 posts, read 6,988,743 times
Reputation: 30172
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Quote:
Originally Posted by TexasLawyer2000
What do you mean? We democratically elected representatives and they will make the rules. That's what we elected them to do.
In terms of targeting, this is no different than the 2020 handouts that were also targeted....
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Key word. Representatives. Congress. The House and Senate. That is where laws are made and where the power to appropriate funds is. Not within the single individual of the President. |
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09-30-2022, 12:48 PM
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8,153 posts, read 3,125,567 times
Reputation: 5713
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Quote:
Originally Posted by tnff
Key word. Representatives. Congress. The House and Senate. That is where laws are made and where the power to appropriate funds is. Not within the single individual of the President.
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The President is elected as well... He is the elected representative of the executive branch.
You're conflating two different concerns here. How laws are made in the US are a function of our Constitution. Not democracy. |
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