Biden doesn't want to fight for 50,000 student loan relief. It's too hard

pimp1101

Rising Star
Registered
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.

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.


Are you surprised?
 

Politic Negro

Rising Star
BGOL Investor

September 25, 2024

Biden’s SAVE Plan – Distributional Impact Analysis


Brief, Education
Summary: The impact of income-driven repayment (IDR) educational financing plans by income, race, and gender is not generally well understood. Our analysis estimates that approximately 43 percent of the subsidies from President Biden’s Saving on a Valuable Education (SAVE) plan will accrue to current Black student borrowers and 71 percent to current female borrowers. While lower- to middle-income student borrowers stand to gain the most, we estimate that about a fifth of the benefits will go to households in the top 20 percent of the income distribution, and borrowers with graduate-level education who benefit from the SAVE plan tend to experience the highest savings on average.
Key Points
  • Approximately 43 percent of the total benefits from the SAVE plan would accrue to Black borrowers with outstanding student loan debt. For future borrower cohorts, about 25 percent of the benefits are expected to go to Black borrowers.
  • Female borrowers are expected to receive about 70 percent of the benefits from the SAVE plan, with current borrowers gaining 71 percent and future cohorts accruing 68 percent.
  • Current student loan borrowers in the top quintile of the income distribution are estimated to receive 24 percent of the total SAVE subsidies, while borrowers from the top quintile in future cohorts are expected to gain 18 percent.
  • While the SAVE plan focuses on benefiting undergraduate borrowers, those with graduate loans are also receiving substantial subsidies due to their significantly larger debt amounts. Student borrowers with graduate loans receive an average subsidy of $6,500 to $8,800 per beneficiary.


Download the full brief to read more.
 

DC_Dude

Rising Star
BGOL Investor

September 25, 2024

Biden’s SAVE Plan – Distributional Impact Analysis


Brief, Education
Summary: The impact of income-driven repayment (IDR) educational financing plans by income, race, and gender is not generally well understood. Our analysis estimates that approximately 43 percent of the subsidies from President Biden’s Saving on a Valuable Education (SAVE) plan will accrue to current Black student borrowers and 71 percent to current female borrowers. While lower- to middle-income student borrowers stand to gain the most, we estimate that about a fifth of the benefits will go to households in the top 20 percent of the income distribution, and borrowers with graduate-level education who benefit from the SAVE plan tend to experience the highest savings on average.
Key Points
  • Approximately 43 percent of the total benefits from the SAVE plan would accrue to Black borrowers with outstanding student loan debt. For future borrower cohorts, about 25 percent of the benefits are expected to go to Black borrowers.
  • Female borrowers are expected to receive about 70 percent of the benefits from the SAVE plan, with current borrowers gaining 71 percent and future cohorts accruing 68 percent.
  • Current student loan borrowers in the top quintile of the income distribution are estimated to receive 24 percent of the total SAVE subsidies, while borrowers from the top quintile in future cohorts are expected to gain 18 percent.
  • While the SAVE plan focuses on benefiting undergraduate borrowers, those with graduate loans are also receiving substantial subsidies due to their significantly larger debt amounts. Student borrowers with graduate loans receive an average subsidy of $6,500 to $8,800 per beneficiary.


Download the full brief to read more.
FBA will say it’s not enough
 

pimp1101

Rising Star
Registered
LOL what about a program that 43% of the subsidies go to black people is bullshit?

Decision bias is when you pick a side and ignore any and all evidence against your initial decision. Kind of puts you in a box though because you have no room to grow.
I didn't HAVE to "pick a side". I just used common sense and read beyond the first page.
 

pimp1101

Rising Star
Registered
"Black borrowers receive the highest average subsidy, at $6,747 per borrower and $10,192 per beneficiary ---- approximately double that of white borrowers"

Did you make it to page 4?

I have to ask this 1st before I respond accordingly: did you copy and paste this from the article or from what was posted above?
 

Temujin

Rising Star
BGOL Investor
I have to ask this 1st before I respond accordingly: did you copy and paste this from the article or from what was posted above?

Why did you have to ask when I gave you the page? And it wasn't posted above? Did you actually read past page one?

Are you in favor of the policy or not. You called it BS but three posts later no explanation of why it's BS. I believe your BS comment was just a knee-jerk reaction to any of biden's policies actually being positive for black people. You don't really have a reason you just want it to be so.
 

pimp1101

Rising Star
Registered
Why did you have to ask when I gave you the page? And it wasn't posted above? Did you actually read past page one?

Are you in favor of the policy or not. You called it BS but three posts later no explanation of why it's BS. I believe your BS comment was just a knee-jerk reaction to any of biden's policies actually being positive for black people. You don't really have a reason you just want it to be so.
No you're just deflecting from the fact that you didnt read it

Cause on the very next sentence is:

Black borrowers receive the highest average subsidy, at $6,747 per borrower and $10,192 per beneficiary ---- approximately double that of white borrowers. "However, white borrowers accrue the largest share of total policy savings, reflecting that they still make up the majority of student loan borrowers."
 

Amajorfucup

Rising Star
Platinum Member
Still a few hurdles from what I’ve read but promising
Formalities... Biden timed this perfectly. They already have mechanisms in place and know this is the last shot to push this shit thru and make it a historical legislative win for his administration along the lines of Obamacare. They about to go crazy wit this shit up to the election. Congrats to all who have and will benefit.
 

DC_Dude

Rising Star
BGOL Investor
Formalities... Biden timed this perfectly. They already have mechanisms in place and know this is the last shot to push this shit thru and make it a historical legislative win for his administration along the lines of Obamacare. They about to go crazy wit this shit up to the election. Congrats to all who have and will benefit.

Unfortuantly this happened....I knew some BS would happened

 

Temujin

Rising Star
BGOL Investor
No you're just deflecting from the fact that you didnt read it

Cause on the very next sentence is:

Black borrowers receive the highest average subsidy, at $6,747 per borrower and $10,192 per beneficiary ---- approximately double that of white borrowers. "However, white borrowers accrue the largest share of total policy savings, reflecting that they still make up the majority of student loan borrowers."

LOL do you know the difference between an average an amount LOL. Of course they made up the majorit their are more white people in America lol

But if we made more on average that means the policy benefited us more. Simple simon.
 

pimp1101

Rising Star
Registered
LOL do you know the difference between an average an amount LOL. Of course they made up the majorit their are more white people in America lol

But if we made more on average that means the policy benefited us more. Simple simon.
:lol:WOW! You are not too bright are you?

Besides the fact that it took you almost a month to respond to this!
 

pimp1101

Rising Star
Registered
LOL I wasn't expecting anything intelligible coming from you and I was right.

I kind of feel bad now I didn't realize you read you just didn't understand what you read cause you stupid lol.
So the guy (who clearly uses pronouns) and didn't even read the report is attempting to tell me that i didn't understand what i read??

Yea either you're a dummy or you just trolling.

Its probably both..............
 

Temujin

Rising Star
BGOL Investor
So the guy (who clearly uses pronouns) and didn't even read the report is attempting to tell me that i didn't understand what i read??

Yea either you're a dummy or you just trolling.

Its probably both..............
Lol yea pronouns like me and you lol

I clearly demonstrated how SAVE program benefited black students more than white students with a quote from the fourth page you asked me if I read past the first page. I should have known right their I was dealing with an (idiot) Then you respond with a quote that clearly did not prove your point. I pointed out that your mistake so hopefully you could learn but you not knowing the difference between and amount and an average also showed me what I was dealing with.

Let me try to break this down to your grade level. If there are 10 people in a room 7 white and 3 black and I give each of the black people 20 dollars and each of the white people 10 dollars the black people got more money on average but the white people got more money in total.

Avg. Black 20
Avg. White 10

Total Black 60
Total White 70

So a plan that gives each black person more than each white person benefits each black person MORE than each white person.

So that's the difference between an amount and an average. You should thank me and your children should thank me so you no longer have to go through life not understanding studies.
 

pimp1101

Rising Star
Registered
Lol yea pronouns like me and you lol

I clearly demonstrated how SAVE program benefited black students more than white students with a quote from the fourth page you asked me if I read past the first page. I should have known right their I was dealing with an (idiot) Then you respond with a quote that clearly did not prove your point. I pointed out that your mistake so hopefully you could learn but you not knowing the difference between and amount and an average also showed me what I was dealing with.

Let me try to break this down to your grade level. If there are 10 people in a room 7 white and 3 black and I give each of the black people 20 dollars and each of the white people 10 dollars the black people got more money on average but the white people got more money in total.

Avg. Black 20
Avg. White 10

Total Black 60
Total White 70

So a plan that gives each black person more than each white person benefits each black person MORE than each white person.

So that's the difference between an amount and an average. You should thank me and your children should thank me so you no longer have to go through life not understanding studies.
:lol::lol:WTF!

You just proved the point I was making you fucking idiot!

And CLEARLY this is how I know you didn't read past the 1st page.

Hell, do you even know what the study was about?
 
Top