How does that impact the student loan situation, in your opinion?Biden played the Democrats like an instrument then hit them with inflation
Biden doesn't want to fight for 50,000 student loan relief. It's too hard
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Because forgiven debt affects the money supply by increasing it (counts as income based on US tax code). With more money in circulation, the cost of goods increase.
This is in theory however, as the US practices pseudo capitalism so all rules don’t apply.
I have to respect the effort.
Joe did alright with this in my book so I can't blame him that it wasn't successful.
so you have a theory...not actual fact.....noted
If this shutdown happens, it's officially over.
Biden's total student debt relief passes $183 billion, after he forgives another 150,000 borrowers
In his final days in office, President Joe Biden announced that his administration would forgive student debt for more than 150,000 borrowers. That relief includes nearly 85,000 people who attended schools that "cheated and defrauded their students," 61,000 borrowers with a total and permanent disability and another 6,100 public service workers, Biden said in a statement.
Annie Nova
JAN 13 2025
www.cnbc.com
In his final days in office, President Joe Biden announced that his administration would forgive student debt for more than 150,000 borrowers. That relief includes nearly 85,000 people who attended schools that "cheated and defrauded their students," 61,000 borrowers with a total and permanent disability and another 6,100 public service workers, Biden said in a statement.
Annie Nova
JAN 13 2025
Biden's total student debt relief passes $183 billion, after he forgives another 150,000 borrowers
In his final days in office, President Joe Biden announced that his administration would forgive student debt for more than 150,000 borrowers.
A bit of an update on what to expect with SAVE
There is a federal register being published tomorrow that contains some language in the preamble that indicates the ED's plans for SAVE considering the litigation. The language indicates that they are working on amending SAVE to meet the court requirements and it will essentially mimic the old repaye as far as borrowers payment amounts - but will have less of an interest subsidy than repaye had. So essentially the same interest subsidy that IBR and paye have. The language is as follows:
"The Department is working to build a version of the SAVE plan that complies with the Eighth Circuit’s injunction. That plan would generally have the same terms as the 2015 REPAYE rule with respect to the monthly payment amounts for borrowers. At this time, the Department anticipates that such work will not be completed until at least the early fall of 2025."
And later in the document:
"The Department is working to create a version of the SAVE plan that complies with the terms of the Eighth Circuit injunction. This plan will be largely similar to the terms of the REPAYE plan, with the exception that the injunction prevents the Department from providing the interest benefits that were also provided under the REPAYE plan. Both the 2015 REPAYE plan and the SAVE plan provided that a borrower with a subsidized loan would not be charged any unpaid interest for the first three years while enrolled in the plan and that all borrowers with subsidized or unsubsidized loans would only be charged 50 percent of unpaid interest after the first three years enrolled in the plan. Until that revised plan is available, the Department will keep borrowers who remain enrolled in the SAVE plan in forbearance and interest will not accrue."
There is no real discussion about loan forgiveness, including how the "new" repaye plan would include forgiveness nor the injunction around forgiveness currently in place for ICR and PAYE.
If we speculate that the new Education Department administration will withdraw their appeal around SAVE soon after inauguration, I think what this language above tells us that they will probably be extending the SAVE forbearances until they can get this new version in place, which won't be until the fall. Whether they will automatically switch folks over to it currently in SAVE remains to be seen, but I expect they might after giving borrowers the opportunity (which they have now actually) to switch to another plan.
They are VERY clear in this federal register that they do not have the ability to make these save forbearances count towards either PSLF or IDR loan forgiveness. Of course buy back is still available for PSLF borrowers for this period - but it's unclear if buy back will be available for this period for IDR forgiveness.
So with this in mind I think those borrowers pursuing forgiveness have a better sense of whether it makes sense to switch plans now or ride out the forbearance. Also those on SAVE can start budgeting knowing what their payments might look like once the dust has settled. If it does mimic the old repaye it will be AGI-150% of the poverty level for the borrowers family size and state - so the same as paye. I don't expect they will bring back the repaye requirement where both spouse's incomes will count regardless of filing status - so if i'm right those filing separately will be able to continue to just use the borrowers income.
It's a shame to lose that extra interest subsidy for sure. And of course the lower payments SAVE provided. For those that want to fight this all you can do is encourage Congress to put a plan such as SAVE into federal law.
Just to set the stage - everything I know is here. I'll post the link to the federal register once it's published tomorrow, but I did mention everything relevant in this post.
Student Loan Update as Debt Cancellation May Change
The incoming Trump administration plans to make substantial cuts to government spending. One of the major points in those proposed cuts is to end Biden-era student loan debt cancellation efforts.
By Ashley Parks
January 14, 2025
www.newsweek.com
The incoming Trump administration plans to make substantial cuts to government spending. One of the major points in those proposed cuts is to end Biden-era student loan debt cancellation efforts.
By Ashley Parks
January 14, 2025
Student loan update as cancellation may change
The Trump Administration has indicated plans to cut government spending by eliminating Biden-era student loan initiatives.
www.newsweek.com
All this shit was a fucking mess and joke.Student Loan Update as Debt Cancellation May Change
The incoming Trump administration plans to make substantial cuts to government spending. One of the major points in those proposed cuts is to end Biden-era student loan debt cancellation efforts.
By Ashley Parks
January 14, 2025
Student loan update as cancellation may change
The Trump Administration has indicated plans to cut government spending by eliminating Biden-era student loan initiatives.
U.S. Rep Steve Cohen (D-TN) reintroduces bill allowing private student loan bankruptcy
FOX13 Memphis News Staff
Jan 15, 2025
www.fox13memphis.com
Memphis Congressman Steve Cohen (TN-9), along with other representatives, reintroduced a bill that would allow people to file bankruptcy on private student loans.
In a statement Wednesday, Congressmen Cohen, Danny K. Davis (IL-7), and Eric Swalwell (CA-14), put forward the Private Student Loan Bankruptcy Fairness Act, "a measure to provide critical relief to those in severe financial distress because of overwhelming student loan debt."
Prior to 2005, private student loans issued by for-profit lenders were treated like credit cards, or most other kinds of consumer debt, when it came to bankruptcy. Meaning that, if the borrower fell on hard times, they were able to declare those loans in bankruptcy; the act Rep. Cohen and the others reintroduced would allow those loans to be declared in bankruptcy again.
"When Congress changed the bankruptcy law, it did so without considering the harm that would be done by those who could not afford their private student loans but prohibited them from resorting to the unappealing but available remedy of bankruptcy," Cohen said. "We have waited far too long for this common sense solution to be enacted, and for fairness to return to the treatment of all consumer debt."
Private student loans can often have high interest rates with no caps, hidden charges or fees, and lack the protections federal student loans have, such as deferments, income-based repayment plans, cancelation rights, or loan-forgiveness programs.
U.S. Representative Steve Cohen (D-TN)
FOX13 Memphis News Staff
Jan 15, 2025
Cohen reintroduces bill allowing private student loan bankruptcy
STUDENT LOAN BANKRUPTCY: Memphis Congressman Steve Cohen, along with other representatives, reintroduced a bill that would allow people to file bankruptcy on private student loans.
Memphis Congressman Steve Cohen (TN-9), along with other representatives, reintroduced a bill that would allow people to file bankruptcy on private student loans.
In a statement Wednesday, Congressmen Cohen, Danny K. Davis (IL-7), and Eric Swalwell (CA-14), put forward the Private Student Loan Bankruptcy Fairness Act, "a measure to provide critical relief to those in severe financial distress because of overwhelming student loan debt."
Prior to 2005, private student loans issued by for-profit lenders were treated like credit cards, or most other kinds of consumer debt, when it came to bankruptcy. Meaning that, if the borrower fell on hard times, they were able to declare those loans in bankruptcy; the act Rep. Cohen and the others reintroduced would allow those loans to be declared in bankruptcy again.
"When Congress changed the bankruptcy law, it did so without considering the harm that would be done by those who could not afford their private student loans but prohibited them from resorting to the unappealing but available remedy of bankruptcy," Cohen said. "We have waited far too long for this common sense solution to be enacted, and for fairness to return to the treatment of all consumer debt."
Private student loans can often have high interest rates with no caps, hidden charges or fees, and lack the protections federal student loans have, such as deferments, income-based repayment plans, cancelation rights, or loan-forgiveness programs.
U.S. Representative Steve Cohen (D-TN)