Right.
Biden doesn't want to fight for 50,000 student loan relief. It's too hard
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Are you talking about the reversal part or the mortgage letter part?
The reversal part. I don't think Trump can go retro active on anyone who got loans discharged, but I need to verify.....
It's still fucked up he wants to destroy everything like the SAVE Plan and PSLF
Could Trump Repeal PSLF And Other Student Loan Forgiveness Plans?
Adam S. MinskyJul 10, 2024,
Former US President and Republican presidential [+]AFP via Getty Images
With questions swirling about the future of President Joe Biden’s candidacy for reelection, there is an increasing possibility that Donald Trump could return to the White House. While the Biden administration has enacted upwards of $167 billion in student loan forgiveness during the last four years, millions of borrowers remain on the hook for their student debt. And the future of student loan forgiveness and favorable repayment programs is uncertain.
During Trump’s presidency, no major student loan forgiveness plans were repealed. This includes Public Service Loan Forgiveness — a popular debt relief program that can eliminate a borrower’s federal student loans after 10 years of payments while working for nonprofit or government organizations. Advocacy groups argued that the Trump administration slow-walked relief for millions of borrowers, severely curtailing the effectiveness of existing loan forgiveness programs. And Trump’s Education Department took concrete steps to narrow relief, such as by rewriting regulations governing Borrower Defense to Repayment. But by and large, the federal student loan system — including PSLF and most other major loan forgiveness programs, as well as income-driven repayment programs — remained technically intact.
That may not be true during a second Trump administration, however. Project 2025 — a sweeping conservative policy proposal — calls for modifying, rescinding, or repealing federal student loan forgiveness plans, including PSLF and debt relief through IDR programs. The Trump campaign has distanced itself from Project 2025, but Trump himself has spoken outagainst Biden’s student loan forgiveness initiates on the campaign trail.
If re-elected, could Trump repeal PSLF and other student loan forgiveness plans? Here’s a breakdown of what could happen.
Administrative Changes Could Interfere With Student Loan Forgiveness Plans
Without directly changing any rules or statutes governing federal student loan forgiveness and repayment programs, a future Trump administration could still make it harder for borrowers to receive debt relief.
Project 2025 calls for a significant restructuring of the federal government, including abolishing the Education Department. “Federal education policy should be limited and, ultimately, the federal Department of Education should be eliminated,” reads the proposal. Trump himself has spoken out in favor of taking action to significantly reduce the federal government workforce. Such changes could have direct impacts on federal student loan programs.
Even now, the Education Department and its contracted loan servicers have struggled to implement various student loan forgiveness and repayment plan initiatives. This has led to processing backlogs, billing mistakes, and delayed relief. Eliminating the department, wiping out staff and their associated institutional expertise, and drastically cutting funding could make it even harder for borrowers to apply and receive approval for various student loan programs, including PSLF and IDR — even if those programs technically remain available.
Steps To Modify Or Rescind Student Loan Forgiveness And Repayment Plan Rules, Including For PSLF
At a minimum, a future Trump administration would at least try to tackle the low-hanging fruit of the student loan system: programs enacted primarily through Education Department regulations.Historically, Congress has passed statutes establishing certain student loan programs, but left if up to the Education Department to draft regulations implementing those programs. The statutes basically provide broad parameters within which the department can operate, and then the regulations go into far more detail about how the programs ultimately work.
Trump as president probably couldn’t just do away with formal student loan forgiveness or repayment programs with the flick of a pen. But he could direct the Education Department to draft new regulations that change or diminish how the plans operate, or — for certain programs — repeal them entirely. Drafting and implementing new regulations takes time (typically a year or two). But that’s easily possible during a four-year presidential administration.
The programs most at risk could be the Saving on a Valuable Education plan, as well as Pay As You Earn. SAVE and PAYE are two IDR plans, established largely through the regulatory process, that base a borrower’s monthly payments on their income. Separately, SAVE is already facing two serious legal challenges that threaten its future.
The Trump administration would probably not be able to completely eliminate other programs, such as PSLF, through the regulatory process, since PSLF is authorized by statute previously passed by Congress. Similarly, Income-Based Repayment, or IBR, is a separate IDR program (different from SAVE and PAYE) that was established by Congress through statute. But he could order the Education Department to rescind new PSLF regulations established during the Biden administration that relax prior restrictions and make it easier for borrowers to qualify for loan forgiveness.
Congress Could Repeal PSLF And Other Student Loan Forgiveness Programs
If Republicans obtain unified control of the House, Senate, and the White House, student loan forgiveness and repayment programs could be at greater risk. That’s because Congress would be able to pass legislation that goes much further than regulatory changes.During the first two years of the Trump administration, Republicans controlled both the House and the Senate. During that time, no legislation was passed to repeal major student loan forgiveness or repayment plans, including PSLF. So, unified control of Washington does not come with any guarantees of major legislative changes. But, since then, student loan forgiveness has become a much more polarized and partisan issue. Whether repeal legislation could actually pass may depend on how large Republican majorities are in each chamber of Congress, and whether Senate Republicans would need to overcome a filibuster, which would require a supermajority.
A Republican-led Congress could potentially repeal popular student loan forgiveness programs, including PSLF and IDR plans, by passing new legislation. Even this year — when Republicans only control the House of Representatives — congressional GOP leadership released proposed legislation that would eliminate student loan forgivenessassociated with IDR plans and repeal borrower-friendly debt relief regulations enacted during the Biden administration (although it would appear to leave PSLF intact).
A major question for current borrowers is whether they would be “grandfathered in” to existing programs if they were repealed — meaning that any changes would only apply to new or future borrowers going forward. If current borrowers are not grandfathered in, some advocates argue that there could be a basis for legal challenges, since these borrowers would have made decisions in reliance on the continued existence of these programs, many of which were contractually built into federal student loan promissory notes.
But whether or not to grandfather people in would ultimately be up to Congress. And if there are subsequent legal challenges brought by borrowers, the outcome of those challenges would ultimately be up to the courts.
Bottom Line For Student Loan Borrowers
Student loan borrowers are already dealing with unprecedented uncertainty. The upcoming presidential election injects even more unpredictability. Even if President Biden wins reelection, certain student loan forgiveness and repayment initiatives — such as the SAVE plan — remain at risk due to court challenges.If Trump returns to office, more student loan programs could be in danger. But the scope of that danger may depend, at least in part, on who controls Congress, and how far the White House and Republican leaders are willing to go in curtailing student debt relief plans.
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Word up. I don't think the forgiveness reversal is/can really be a thing either. Not retroactively at least.
But I have NO doubt they'll try to blow the relief plans up, though. Even if it's not tRump directly, it's the people he empowers that go super hardline against those.
Yup. I know a few people that got their loans payments cut in half because of SAVE.
Crazy world
One thing people need to follow up on.
After your loan is forgiven the government is NOT reporting it to the credit bureaus. You will most likely have to file a dispute to get it taken off your credit..or at least get them to show paid off / zero balance
After your loan is forgiven the government is NOT reporting it to the credit bureaus. You will most likely have to file a dispute to get it taken off your credit..or at least get them to show paid off / zero balance
Yeah it fell off my report after about 4 from getting discharged.
But you are right, you definitely want to make sure it comes off.
Yup. It took about 2 months from the forgiveness LETTER date for my credit reports to update. About 4 months total from the official forgiveness EFFECTIVE date.
I ended up filing a dispute via Credit Karma, but my reports were updated about a week before the dispute was resolved.
Hate them tooI hate these muthafuckas
I hate these muthafuckas
...the good guys really need to put together some simple, factual graphics detailing exactly who is set to benefit from bleeding student loan monies out of folks and where the money goes. WHY the fuck are they going so hard?
Corporations need their money.
Shit's crazy.
Because the lenders have turned student loans into asset backed securities that they sell to big investors.
In other words student loan debt is a "higher education market", that has been used to exploit middle and low income students, these are mostly private lenders tho not federal.
Problem is this is ballooning the same way the sub-prime housing market bubble did back in 2008.
It's like these fools do the same thing every time but a different market.
Thanks G, I'm gonna pass this along to some of my people..
Biden is the lamest of ducks right now so he should just ram thru as much loan forgiveness as possible call it the last great act for american citizens by Biden-Harris (attaching it to Kamala's campaign) and watch the republicans wrestle with why its good that americans be strapped with crippling student loan debt.
I think that's been their plan and exactly what they've been doing for a while now. If you look at it, even thru all the Repub and Supreme Court bs, this admin has found different ways to circumvent the opposition on the low with diff plans to push as many ppl thru to forgiveness on their watch as possible. I can tell you that first hand as one of those fortunate enough.
It'll be interesting to see what happens the next few months.
dismissing loan debt from bullshit schools most of which people never got what they paid and wasted time to get....how is that pimp move???How many times do you have to get pimped out before you realize you are a ho?
Biden has been in federal level politics longer than I’ve been alive.dismissing loan debt from bullshit schools most of which people never got what they paid and wasted time to get....how is that pimp move???
Unless you are a feminist, immigrant or LGBT, he isn’t thinking about doing anything for you other than using you to garner support (money or votes) for the DNC.
sooo all you stated was how politics works.
student loan dismissals benefits blacks as much as anyone else who can get it (including conservatives who publicly rail against it while secretly thanking God for it when they get it.
this POV you express just shows you're not an activist or revolutionary...just a contrarian internet troll.
I went to graduate school with several international students....This is 100% correct...Hell I would argue alot of schools, esp. the high costing schools, prefer international students because those students are paying with cash.....No loans.....\
I became good friends with 2 Medical Doctors from Saudia Arabia and they said their government paid for them to attend my university...Paid for all school costs and living expenses......
I still don't understand this....SAVE is a more manageable program for people with loan debt...
https://www.cbsnews.com/politics?ftag=CNM-16-10abg0d
Supreme Court won't reinstate Biden administration's latest student loan forgiveness plan for now
Washington — The Supreme Court on Wednesday declined to reinstate the Biden administration's latest plan to cancel student debt for millions of borrowers, leaving them in limbo while the appeals process plays out.
The justices turned down a request from the Justice Department to lift a sweeping appeals court order that blocked the program, known as the SAVE plan, which has been the subject of legal challenges from more than a dozen GOP-led states in recent months. The court said in an unsigned order that it "expects that the Court of Appeals will render its decision with appropriate dispatch." There were no noted dissents.
Its order leaves the injunction from the U.S. Court of Appeals for the 8th Circuit in place for now. The Education Department paused loan payments for borrowers enrolled in the program earlier this month because of the ongoing legal proceedings.
Mr. Biden's attempts to provide relief to millions of Americans have not fared well before the Supreme Court, which last year struck down an earlier plan that would have benefited more than 40 million Americans and forgiven nearly half-a-trillion-dollars in loans.
The administration said it had the authority to make these changes under the Higher Education Act and estimated that out of the 8 million borrowers who enrolled in the SAVE Plan, 4.5 million have monthly payments of $0. Some of the plan's provisions took effect at the end of July 2023, and others were implemented in January. Others still were set to come into force on July 1.
The Education Department estimates the SAVE plan will cost nearly $156 billion over a decade. But critics have argued that the actual cost is $475 billion, since they said the Biden administration excluded from its analysis $430 billion in debt that it expected to be forgiven by the president's earlier, broader loan forgiveness proposal. That plan, which relied on the 2003 HEROES Act, was invalidated by the Supreme Court last year.
In April, months after a rule detailing these changes was adopted, seven states filed a federal lawsuit in Missouri challenging its provisions and sought to block its implementation and enforcement. A separate group of three states also sued over the SAVE plan in federal court in Kansas and sought their own emergency relief from the Supreme Court after a federal appeals court kept the plan in place for now.
In a brief unsigned order, the court rejected the states' request to lift that appeals court's stay, noting that the states said they do not require relief from the Supreme Court as long as the 8th Circuit's order is in place.
In the Missouri dispute, a federal district court found first that Missouri had the legal right to sue. It also determined that the state had a "fair chance" of succeeding on its claim that the secretary of education exceeded his authority by shortening the repayment period for borrowers with original balances of $12,000 or less.
While the court found that the states were unlikely to succeed on their remaining claims, it blocked any new loan forgiveness under the SAVE plan.
The Biden administration appealed, but stopped canceling loans for borrowers who would receive relief through the shortened repayment period. A three-judge panel for the U.S. Court of Appeals for the 8th Circuit then issued a sweeping injunction blocking the SAVE plan and a pre-existing provision of forgiveness after 20 or 25 years of repayment.
The 8th Circuit's decision blocks implementation of the program for borrowers nationwide and is at odds with the order from the U.S. Court of Appeals for the 10th Circuit in the dispute involving the three other states, which kept the SAVE plan intact during legal proceedings.
The Biden administration has criticized the reach of the 8th Circuit's ruling and said it effectively granted the trio of states in the other case — Alaska, South Carolina and Texas — relief they were denied by the appeals court covering their region.
"This is not how the judicial process is supposed to work," Solicitor General Elizabeth Prelogar told the justices in a filing.
In asking the Supreme Court to lift the 8th Circuit's injunction, Prelogar argued it "upends the status quo and is inflicting serious harms on millions of Americans."
She noted that over the past year, millions of borrowers have received and paid student loan bills that reflected some of the initiative's provisions.
"Because of the Eighth Circuit's orders, however, many borrowers are now experiencing intense confusion from being told that their payments must be recalculated and from being placed in forbearance — which will delay any eventual loan forgiveness," including under programs that were not challenged by the states, Prelogar said.
Borrowers, she continued, "would suffer additional harm if they are eventually sent higher bills and told that they can no longer count on the forgiveness that they were promised at the end of their repayment periods."
But the seven states, led by Missouri, accused the Biden administration of making "flawed" arguments and omitting a "shocking amount of context." Republican state officials from Missouri, Arkansas, Florida, Georgia, North Dakota, Ohio and Oklahoma called the Justice Department's request to lift the 8th Circuit's order "aggressive."
"From this banal text about length that exists in many plans, the secretary asserts authority to forgive every penny of every student loan," the GOP-led states wrote of the Higher Education Act in a Supreme Court filing. "Indeed, under the final rule, nearly everybody receives forgiveness."
Pointing to the millions of borrowers whose monthly payments will be $0, the states claimed the Biden administration is effectively forgiving their loans. Because the Higher Education Act requires repayment and does not authorize forgiveness, the states argued the education secretary went too far.
Mr. Biden campaigned during the 2020 election on providing student debt relief and has rolled out a number of initiatives aimed at easing a financial burden that affects roughly 43 million Americans, who have a combined $1.7 trillion in student debt.
The Department of Education estimates that it has forgiven $168 billion in debt for more than 4.7 million Americans. It said one in 10 federal borrowers has been approved for some relief.
https://www.cbsnews.com/politics?ftag=CNM-16-10abg0d
Supreme Court won't reinstate Biden administration's latest student loan forgiveness plan for now
Washington — The Supreme Court on Wednesday declined to reinstate the Biden administration's latest plan to cancel student debt for millions of borrowers, leaving them in limbo while the appeals process plays out.
The justices turned down a request from the Justice Department to lift a sweeping appeals court order that blocked the program, known as the SAVE plan, which has been the subject of legal challenges from more than a dozen GOP-led states in recent months. The court said in an unsigned order that it "expects that the Court of Appeals will render its decision with appropriate dispatch." There were no noted dissents.
Its order leaves the injunction from the U.S. Court of Appeals for the 8th Circuit in place for now. The Education Department paused loan payments for borrowers enrolled in the program earlier this month because of the ongoing legal proceedings.
Mr. Biden's attempts to provide relief to millions of Americans have not fared well before the Supreme Court, which last year struck down an earlier plan that would have benefited more than 40 million Americans and forgiven nearly half-a-trillion-dollars in loans.
Biden's student loan forgiveness plan
The latest program is an income-driven repayment plan in which monthly payments of a loan are based on the borrower's income. Rolled out by the Biden administration in July 2023, the SAVE plan lowers monthly undergraduate loan payments to 5% of a borrower's' discretionary income above 225% of the federal poverty line — up from 150% — and provides for shorter repayment periods and earlier loan forgiveness for borrowers with smaller starting balances. A borrower who owed $12,000 or less, for example, would have their outstanding debt wiped away after making 10 years of payments.The administration said it had the authority to make these changes under the Higher Education Act and estimated that out of the 8 million borrowers who enrolled in the SAVE Plan, 4.5 million have monthly payments of $0. Some of the plan's provisions took effect at the end of July 2023, and others were implemented in January. Others still were set to come into force on July 1.
The Education Department estimates the SAVE plan will cost nearly $156 billion over a decade. But critics have argued that the actual cost is $475 billion, since they said the Biden administration excluded from its analysis $430 billion in debt that it expected to be forgiven by the president's earlier, broader loan forgiveness proposal. That plan, which relied on the 2003 HEROES Act, was invalidated by the Supreme Court last year.
In April, months after a rule detailing these changes was adopted, seven states filed a federal lawsuit in Missouri challenging its provisions and sought to block its implementation and enforcement. A separate group of three states also sued over the SAVE plan in federal court in Kansas and sought their own emergency relief from the Supreme Court after a federal appeals court kept the plan in place for now.
In a brief unsigned order, the court rejected the states' request to lift that appeals court's stay, noting that the states said they do not require relief from the Supreme Court as long as the 8th Circuit's order is in place.
In the Missouri dispute, a federal district court found first that Missouri had the legal right to sue. It also determined that the state had a "fair chance" of succeeding on its claim that the secretary of education exceeded his authority by shortening the repayment period for borrowers with original balances of $12,000 or less.
While the court found that the states were unlikely to succeed on their remaining claims, it blocked any new loan forgiveness under the SAVE plan.
The Biden administration appealed, but stopped canceling loans for borrowers who would receive relief through the shortened repayment period. A three-judge panel for the U.S. Court of Appeals for the 8th Circuit then issued a sweeping injunction blocking the SAVE plan and a pre-existing provision of forgiveness after 20 or 25 years of repayment.
The 8th Circuit's decision blocks implementation of the program for borrowers nationwide and is at odds with the order from the U.S. Court of Appeals for the 10th Circuit in the dispute involving the three other states, which kept the SAVE plan intact during legal proceedings.
The Biden administration has criticized the reach of the 8th Circuit's ruling and said it effectively granted the trio of states in the other case — Alaska, South Carolina and Texas — relief they were denied by the appeals court covering their region.
"This is not how the judicial process is supposed to work," Solicitor General Elizabeth Prelogar told the justices in a filing.
In asking the Supreme Court to lift the 8th Circuit's injunction, Prelogar argued it "upends the status quo and is inflicting serious harms on millions of Americans."
She noted that over the past year, millions of borrowers have received and paid student loan bills that reflected some of the initiative's provisions.
"Because of the Eighth Circuit's orders, however, many borrowers are now experiencing intense confusion from being told that their payments must be recalculated and from being placed in forbearance — which will delay any eventual loan forgiveness," including under programs that were not challenged by the states, Prelogar said.
Borrowers, she continued, "would suffer additional harm if they are eventually sent higher bills and told that they can no longer count on the forgiveness that they were promised at the end of their repayment periods."
But the seven states, led by Missouri, accused the Biden administration of making "flawed" arguments and omitting a "shocking amount of context." Republican state officials from Missouri, Arkansas, Florida, Georgia, North Dakota, Ohio and Oklahoma called the Justice Department's request to lift the 8th Circuit's order "aggressive."
"From this banal text about length that exists in many plans, the secretary asserts authority to forgive every penny of every student loan," the GOP-led states wrote of the Higher Education Act in a Supreme Court filing. "Indeed, under the final rule, nearly everybody receives forgiveness."
Pointing to the millions of borrowers whose monthly payments will be $0, the states claimed the Biden administration is effectively forgiving their loans. Because the Higher Education Act requires repayment and does not authorize forgiveness, the states argued the education secretary went too far.
Mr. Biden campaigned during the 2020 election on providing student debt relief and has rolled out a number of initiatives aimed at easing a financial burden that affects roughly 43 million Americans, who have a combined $1.7 trillion in student debt.
The Department of Education estimates that it has forgiven $168 billion in debt for more than 4.7 million Americans. It said one in 10 federal borrowers has been approved for some relief.