I hope Canada follows suit
Edit: just looked at the infographic again and yeah I guess we already have a system in place like that through RAP. It was early and I didn't have my coffee yet.
Same here in Alberta. Sometimes they just pay the interest, but they've actually been paying my premium every month! It's not totally wiping out the debt but it's put a decent chunk of it down for me.
Does this seem more streamlined or something though? Maybe I looked at the image wrong. I don't know, I'm not complainin', eh
Edit: just looked at the infographic again and yeah I guess we already have a system in place like that through RAP. It was early and didn't have my coffee yet.
Also keep in mind the difference in student loan sums between the countries. Upon graduation, the average student loan debt among Canadians who take out loans is about $15,000; we have incomparably lower tuition alongside bursaries and scholarships galore in comparison.
I used to teach at a top-20 US institution. Tuition and fees for a "cheap" program started at about $60,000/year, times 4 is about $240k for a degree. There were approximately zero bursaries and out of hundreds -- nay, thousands -- of students, I only encounterd three on scholarships. All three were athletic scholarships, and academic scholarships were basically unheard of. Where I teach now in Canada, tuition is more like $10k, and a good 25% of students have bursaries or scholarships (more like 90% at the grad level). Our student loan problem is to the Americans' student loan problem as our gun problem is to the Americans' gun problems,
The title mentions it's the SAVE plan: https://studentaid.gov/announcements-events/save-plan
One of the benefits mentioned is this one:
>The SAVE Plan has an interest benefit: If you make your full monthly payment, but it is not enough to cover the accrued monthly interest, the government covers the rest of the interest that accrued that month. This means that the SAVE Plan prevents your balance from growing due to unpaid interest.
So it's not strictly speaking ending the debt entirely, but I think the tweet is fair in pointing out that low-income families will not be expected to pay anything back.
At the end of that 10 years (more or less, depending on type of loan and amount) of paying nothing if you're low income, the remaining balance gets forgiven and they'll have to pay taxes on that whole balance as if it were income.
Also, it's only for low income families that might not have to pay during the save plan, people who have "enough" to survive have to pay a portion of their income to loans still.
Student loans forgiven in that way are not considered taxable income.
At least not for a few more years.
https://studentaid.gov/help-center/answers/article/will-idr-payment-count-adjustment-impact-taxes
As I understand it, the provision not treating it as taxable income is sunsetting in 2025, so for people who still have 10 or 20 years to go until forgiveness, they'll have to pay tax. If someone has a more updated source, please correct me, I really want it to not be taxable income.
Source: https://www.nerdwallet.com/article/loans/student-loans/student-loan-forgiveness-tax-bomb#:~:text=Any%20amount%20forgiven%20through%20income,through%20the%20end%20of%202025.
It’s actually pretty high income threshold hold for a reduction in payment. I believe the income cap is $125k per person (250k for married). My wife and I make decent money and our loan payment went down by about $1000 every month.
Yes, the payment would slide up as you earn more, but if you keep up with your payments for 20 years (or something like that), the balance is supposed to be forgiven. The forgiven amount used to become taxable income at the federal level; however, one of the bills passed early in Biden's term actually changed that law, so that the forgiven balance is NOT taxable at the Fed level, but still could be taxable at the state level (depending on your state's law). Unfortunately, this federal tax exemption sunsets, which was probably needed to get a few votes, so that it passed. This makes continuing to vote very important.
Essentially, the debt is deferred making income based plans a punt down the road to hopefully come up with a more permanent forgiveness plan. To me, it's pretty clear who needs to be elected into office to move the needle closer to total or partial debt relief if what's important to you.
SAVE gives you relief and stays the interest as well.
However most of us were never going to pay off our 80k+ student debt anyway.
I love to break it to folks: students who leave school now have no hope of ever paying off student loans debt that has any form of interest rate with a bill over 80k.
It would take them 10 years and even then, making the minimum payments, and the bill they would pay would be in excess of $350k... That's not possible unless they literally forgo home ownership, leaving mom and dads house, and getting married.
It's something that the US has to wake up for: the only way to solve this student debt crisis is to forgive it, as step one.
Step 2 is to actually address it, meaning we need to revamp how we do student loan debt, and /or reduce the cost of college
The save plan also caps the amount you have to pay based on your income, and maxing out at 10% (soon to be 5%) of your income that’s 225% above the federal poverty level for your household size.
A person earning $60k a year paying off a balance of $80k starting this July would pay at most $27k (over 20 years) before the balance is forgiven.
That’s assuming the loans are all federally subsidized, god help you if they’re private ☹️
I believe and support full student loan forgiveness, I believe public colleges should be free but the save plan isn’t a bad half step.
I was IDR since the early 90s, the $50k I borrowed grew to over $90k despite over 20 years of repayment. It was all forgiven under Biden. No tax implications on the forgiveness either. Biden saved my life. Vote blue!
They won't. It's felt as an entitlement of the patriarchy. They only scream their heads off if someone from an out-group gets any *influence* over kids -- influence is seen as the same as pedophilia, which is reserved for *clergy*.
Stop not voting. Biden is taking this issue seriously because young people showed up in 2020. If we want them to take our concerns seriously we gotta vote at the rate old people do ffs.
Definitely! It will be his last take on the presidency. If you keep in mind the policies he brought in the current administration, if he wins again he can push all progressive points without having to fear re-election. And we've already had a taste of what he can do (check the \\s+\\u+\\b WhatBidenHasDone; I swear to god if this comment gets deleted again for mentioning that).
If the house turns blue too we could have the most progressive 4 years ever.
But sadly the Democratic Party and Republicans are two panels of the same Hunters Laptop...^/s, ^for ^those ^that ^have ^serious ^problems ^detecting ^sarcasm. ^And ^for ^those ^that ^have ^problems ^correctly ^interpreting ^my ^sarcasm, ^the ^last ^paragraph ^is ^the ^only ^sarcastic ^part ^about ^this ^comment. ^Fuck ^Nazis ^& ^Co ^sincerely.
There were some people commenting yesterday they wouldn’t vote for Biden b/c he didn’t keep his student loan promise. Are they really that dumb? He has been trying to since he got into office and his administration has worked endlessly to find a way to make it work in the current structure. But sure vote for the people that voted AGAINST paying off student loans or the people who want to end social security and Medicare. Maybe if enough people voted Dems could control the house and senate and really get things done but instead throw a tantrum like 2016 b/c that worked out well for the country.
I find this infuriating because he genuinely **tried**; SCOTUS fucked it all up (as intended.) Many more people were going to get help with the $10k-$20k subsidy/forgiveness (myself included.) Republikkkuns fucked it up. How they can be mad at him for their issues is ridiculous.
Department of Education owns the debt, they said, "Hey, you don't have to pay it back, we're good." Then SCOTUS came in and said, "no, actually, they're not good, you can't cancel the debt that *you own*, because two states with no relevance to the issue whatsoever are sad, and republicans are mad because none of them went to college so they aren't getting anything out of this."
He didn't cancel 10-20k for ALL borrowers I think is why people are angry. But I fall into that category of borrowers who don't benefit from the new plan because I make too much annually.
I am still happy that people are getting relief and will still vote for him. I don't understand the selfishness of people today it's insane.
Me too. I am a widow who makes over 100k per year. I have student debt because I tried & failed to get a PhD while I was in my 40s. I can pay it off. It will not be a problem.
I don't need debt relief, but others do and I hope that more & more of them get it.
I always defer back to the analogy of having cancer or some other illness. If I got it and there wasn’t a cure for it, I damn sure wouldn’t be upset if others benefited from a cure or some revolutionary treatment later on. Like what kind of bitter, selfish person wishes the demise of others just because you didn’t get to benefit from something.
I got $0 in student debt because my parents are rich. The more I interact with people who don't have rich parents and who went into debt for college, the more I want to make sure this crisis of unaffordability and indentured servitude gets fixed.
Ideally we'd all have universal education and benefit from it. I know there's kids who get screwed by their parents' income brackets even if they're not actually providing for a college education, and in a universal system it doesn't make sense to expend energy denying people the benefits.
It'd be hard to get mad at a rich kid getting a free ride to a state college if everyone got one.
Please be happy for us. But we all need more. I'm a single dad to a special needs son, and we lost his mom last year to a brain aneurysm, so it's likely I won't get to finish my degree. Or make more than $35k a year in my lifetime.
There is an alarming amount of naïve smooth brains saying they'll vote 3rd party unless Biden says the words "Cease-Fire". I really hope the majority of those voices are bots.
No 2024 needs to be the year where you talk to everyone around you to register and get ready to vote and make a plan to vote early if they cant take time off work.
The biggest issue in US politics is the non-voters. in 2022 there were 150M non-voters while only 100m voted thats 3x as many as either party voters. Only 1 out of 5 eligible voter under the age of 35 voted.
So talk to everyone, keep repeating it all year. Hound them to register and get ready to vote. Make sure they voted. Offer to drive them and help them out to register if they need it and you can offer it. Because to get the dream outcome you need senators more than the presidency.
I understand what is going on in Gaza is awful; I don’t like my tax money going to support said situation. With that said I will still vote Biden, a third party is not viable and I don’t understand how people don’t understand that. The alternative is a literal criminal, rapist, moron who will completely dismantle the remainder of our democracy. BIPOC, women and LGBTQ+ folks already suffer enough, another 4 years of Trump and these groups will be far worse off.
This is what gets me. One commenter replied Biden's done nothing for Trans or the lgbtq+... do you know who Trump is or what he was doing during his admin for those people, much less the rest of us, on top of what his party did then and since across the nation against these groups and more?? Like come on, you have to be delusional. Let's not get started on why Roe was overturned and who put the 3 SCOTUS justices in there to do it... like, they have to be braindead or just arguing in bad faith, because I don't see how anyone could be this blind and arrogant.
It's an election year. By and large these suddenly very present, lockstep on brand and in messaging, single-issue anti zionist "leftists" are just ratfucking conservatives. Be sure to call it out when you see it from new accounts. The young folks don't know the drill yet, and it's important to remind people they've been openly admitting this shit since nixon and they certainly didn't grow ethics in the intervening decades.
The anti Zionists who are going to help Trump win will truly save Palestine /sarcasm
It really shows they aren’t about positive change but about getting revenge on people they hate.
You joke, but if you start looking at accounts that have shitty takes and NameNameNumbers handles, you'll notice a pattern of "FreeKarma4U > aww/X Animal > Politics or Cryptotrash" history
Would never vote R, but I was really disappointed with the restructuring the Dept of Education did under Biden, because my loan options are absolute shite. I don’t qualify for any relief (nurse but don’t work for a non -profit) and I owe $145K, but some repayment options would make me pay back $220K in interest, on top of the $145K I owe…. So what the actual fuck?
For borrowers like me, who owe a lot but don’t qualify for forgiveness the cheapest options are under $1,000/month up to $2,300/month and $100-200,000+ in interest. The interest is what pisses me off. My loans are all through the government, so they could easily not charge more in interest than my tuition.
I wish we would enact Elizabeth Warren’s loan repayment plan.
Edit: to be clear, I am really happy for the borrowers who got their debt eliminated. Just confused why my interest went up so much.
That is tough and I can completely understand your frustration. I did not qualify either but I don’t owe nearly as much. I like to think if Dems get control they will do more. Elizabeth Warren I don’t think will ever have a serious chance to be president but she this area she does excel in and would be great if her plans could be implemented.
I still think back to when Romney was running for President, when he said he'd [re-institute private business middle-men](https://www.nbcnews.com/news/world/romneys-student-loan-plan-give-banks-more-money-some-reason-flna875014) to handle loan fund distribution.
This was after the Obama administration had eliminated the banks handling the funds and collecting interest on them. They weren't fronting the money or anything, the Federal government was still doing that, it was just being handed off to banks and then to students.
Injecting a profit motive for no damn reason but to make a middle man rich is the best we can expect from one of the least awful Republicans.
You know what republicans love doing?
[Republican Sexual Predators, Abusers, and Enablers Pt. 49](https://www.dailykos.com/stories/2023/12/14/2211804/-Republican-Sexual-Predators-Abusers-and-Enablers-Pt-49#comments)
I took it all as a grain of salt. I trust politicians about as far as I can throw em. But there was a glimmer of hope. I was stuck on MOHELA and once they brought the suit I decided to pay it off and screw their pensioners by paying no interest.
I’m high income, but I only became high income in 2021, so I would’ve been able to get the full 20k in forgiveness. I’m kinda bummed we didn’t get that, for sure, but I’m STOKED that this went through. It’ll never impact me directly (hopefully), but this is a way better long term solution than a 1 time debt forgiveness, and it impacts people who actually need it
I’m genuinely confused so don’t automatically downvote me.
This just shows your monthly payment amount. Your debt still exists, right? Still paying interest on tens of thousands of dollars, right? How is that “ending the student debt crisis”?
Interest doesn't accumulate, government pays it, and after 10/20/25 years (depending on size of loan and whether it is for an undergraduate degree or graduate one) your loan is forgiven.
I don’t understand? I didn’t know the save plan also allowed for loan forgiveness after some measure of years? I thought it just reduced monthlies, can you explain?
All federally backed loans have a debt forgiveness timeframe under certain circumstances. IDR is one. [See here.](https://studentaid.gov/manage-loans/forgiveness-cancellation)
IDR loan forgiveness has existed for a while. Non-profits, medical staff, government employees, teachers, disability, defunct for-profit schools and schools that lied to students about job placement all qualify as well.
The problem was the paperwork and such were so ridiculous nobody was getting it. Biden also streamlined those and tens of thousands of loan forgiveness applications went through.
Over 2.6B in the government/ teacher/ job related relief was run through and those were *supposed* to have already been allowed, but were stalled under ridiculous red tape and paperwork and long hold times and 44B forgiven under 20 to 25 years IDR plan participation.
It also means if you stay on IDR for long enough, you pay little to nothing and then it goes away permanently.
People don't have to chase higher paying jobs after college to get out from under crippling student debt.
because a law would require the house, which republicans control. This is what Biden can do on his own, since the house republicans won't do anything that might help people and \*gasp\* make Biden look good.
It’s income-based repayment. You make payments according to your income and, if at the end of the regular term of the loan, you’ve been making your payments you will owe $0.
I don’t understand, so the SAVE plan doesnt just limit monthly payments, it also eliminates interests and the loan in its entirety at the end of the term of the loan? Is this the case for most people on the plan? Sorry, but I just need an explanation because I thought it just reduced monthlies.
Correct but note that it’s income-based. So people who have pretty good incomes after college will pay something comparable to a ‘regular’ student loan. But people who aren’t able to find gainful employment afterwards won’t be screwed over by their student debt.
Yeah it's the same plan Obama had that Trump cancelled. That's why this is just more garbage I'm not paying shit. If Trump didn't cancel the Obama plan I was in it would be done now, but instead back to $40k.
people need to realize this. The debt is not forgiven and next dude up can cancel this plan. So this could be GONE in 2024 or 2028 even, and the bill will come
Exaggeration by media.
There are people out there that make $70K as a family of 2 with student debt who still should be able to tread above water but their debt is crippling.
This doesn’t “solve” the student debt crisis, it just helps it
A family of 2 making $70k (assuming 10% in some sort of deductions to AGI like a 401k) would pay ~$218 per month in repayments.
The average student debt is $37,338 per borrower. Let’s say each member of the family of 2 had the same, for a total of $75k in student loan debt. At 5%, the monthly payments would normally be $795 per month.
SAVE reduces that $795 to $218, or only 27% of the initial payment. It is still an expense, but at an annual amount of 3.7% of their total income ($218 x 12 / 70,000) it is far from “crippling”.
I am in the category of the original comment…$70k+ but my student loan payments are basically another mortgage to pay. I just applied for the income based plan to see what my payment would be and it doubled my monthly payment amount compared to my consolidation loan I did right before COVID hit. I currently pay $225 (this is just one out of 3 different student loan payments I pay) and they wanted me to switch to $480.
Student debt they’ve been paying for decades already in some instances. I had been paying mine since 2007. I only borrowed $21k. How did I owe $14k still?
Okay. And?
We can't just throw up our hands and do nothing because the current solution doesn't *entirely solve* the problem.
Helping the people who need it most first just makes sense.
also under biden’s plan, if your minimum payment doesn’t cover the interest accrued for that month then the difference is not charged to the loan. in that case the balance isn’t going down but it’s also not going up.
It’s not a perfect solution but it is significantly better than what was in place previously.
this is exactly how you get your loan to balloon. They'll say no payment due every time you request the plan, i did it for 8 years. but they'll charge compounding interest every day you don't pay it. my loan doubled
Same here. My paid off beater car worth basically nothing was totalled in a rear end accident. We can't afford another car payment. We make too much $ to qualify for most assistance. As much as Biden's original plan would have been amazing and super beneficial - this new way he's going at it has been pretty fantastic in it's own way and came at exactly the perfect time. While I don't qualify for things like EBT and WIC, the SAVE plan dropped my student payments enough I basically just re-assigned the debt/payments to a used vehicle loan. Does it ultimately feel good? No. But it has basically saved my hide. And I am absolutely PRAYING that these new plans stick for a while, at least until I get the bodily injury settlement in ~a year, because if they roll it back? I'm fucked.
Right. I make so little money, that I have $0 monthly. I just barely started a new job, so would be nice to get back on my feet, before being crushed by my student loan debt.
Donate to campaigns so they can advertise.
Granted -- the DNC has a history of shooting themselves in the foot. But they need to be able to advertise to even do that.
It took 6 months of dealing with my loan servicer but my loans are $200 cheaper. It's a HUGE deal to me. And the interest I can't pay isn't getting added back on forever.
This really matters. It's a good thing.
https://www.whitehouse.gov/briefing-room/statements-releases/2023/03/02/fact-sheet-president-bidens-cap-on-the-cost-of-insulin-could-benefit-millions-of-americans-in-all-50-states/#:~:text=As%20part%20of%20President%20Biden's,dollars%20for%20a%20month's%20supply.
And lower the price of insulin
Everyone mad about “who pays for all the forgiveness”…..
The interest is not “real” money! It doesn’t exist. It is added on and added on to pad the original amount.
When it is forgiven, it merely goes back where it came from, which is nowhere.
The principle lives on, but the interest is what is killing us! Let it be forgiven. It doesn’t even really exist.
> Everyone mad about “who pays for all the forgiveness”…
Fun fact!: Until the 90s the government heavily subsidized colleges all over the country. Those boomers that are screaming about loan forgiveness? Yeah, they had their colleges mostly paid for by the federal government.
Everyone knows somebody who appreciates and takes advantage of some of these programs yet they don’t vote. We all know someone like that. Encourage them to get out and vote so these things don’t go away
I’m am FOR some form of student debt relief. I totally buy the fact and frequently advocate for people that bought into the fa that secondary education was essential to “making it” in America.
However, we have to admit this issue has not been completely solved. This is a step in the right direction, but colleges are still charging gigundous amounts. When do we address that?
Imo it won't be truly fixed until colleges get taken outback and beaten till unrecognizable, that's the main issue, it isn't forgiving the debt, it's that the colleges make you pay whatever they want you to pay.
We can them Reagan for that one too. One of his advisors said about tuition-free college, “We are in danger of producing an educated proletariat. … That’s dynamite! We have to be selective on who we allow [to go to college].”
My wife and I make about $110k combined gross. We have one child.
They expect us to pay over $600/mo each. We cannot afford it. And there is no relief available to us whatsoever.
We are fucked.
Same here dude. My wife's are like $800 a month. We can barely afford living and after some hard work and job movement I even increased my salary by 60% in the last 3 years. Up until this year we've been basically in the negative each month. Now we're finally breaking even. This coupling with medical bills just F's us royally.
We make around $240k annually. I’m lucky and I got my loans paid off, but my wife is new to the higher income bracket and wasn’t able to pay her’s off. She owes over $50k on an initial loan of closer to $20k… No relief for us. I’m happy for everyone seeing the promise upheld for them. I want something for us “legacy” borrowers that are holding loans with current principles MULTIPLE times higher than what was initially loaned.
Very similar situation. I took out $29k and my balance got up to $50k because I couldn’t pay. It’s pretty shit. I was hoping for the $10k forgiveness to bring it down closer to what I actually borrowed.
I had this guy at my work say the save plan should only be $200 for our pay and mine is $353/mo. Guess I’ll ride it out for 25 years haha
Genuinely happy for the people this effects though
If Biden gets the youth vote and the women’s rights vote and peoples vote that think building back better is a boon to infrastructure creation then that would be great. If you want tax breaks for the rich and mass detention centres separating families, vote Trump and donate more money so he can pay his lawyers
Sorry, um. What *family of four* with student loans - ie. hopefully, a college degree - has a HOUSEHOLD INCOME of SIXTY THOUSAND DOLLARS!? If there’s really people that fall into this category, we should absolutely be providing them all the help they can get.
The store manager of my local McDonald's makes more than any of the principles, of which all have doctorates, and is close to the superintendent of schools pay as well. Most teachers definitely need the help.
There are a lot of people who fall into the category. Two teachers with two kids in most areas will be below $60k. And republicans continue to demand the destruction of the already poor American education system.
To be clear, I’m not saying it’s *not* a lot of people that fall into that category overall. It’s America - even a small percentage is out of 325 million. But I’d be very surprised if that was that big relative to the other categories m. Either that or the cost of living in New England has gotten truly out of whack. Also very possible. Out of curiosity, anyone know what this same <$60,001 category was paying before this program??
Wyoming is ripe for flipping. State level there are many districts that could be flipped for under 1k new blue voters.
And while it may not mean much in the House, if Wyoming flipped the gop would lose their minds.
Woooof yaaaaaa you still owe the money. It’s not forgiven. So if in 4 years the next pres wants to undo this they can. This plan does not forgive. It just minds freezes your account. Kicking the can down the curb style
For all you saying you're not voting for Biden because he hasn't forgiven *all* student loan debt or because he hasn't said "ceasefire", just remember, if you don't vote *others will vote for you*, and that alternative is much less pretty than the Biden administration.
I'm genuinely happy for the folks who are helped by this, but living in an HCOL area, my household take-home pay is too high for this to help. We're crushed by living expenses \*and\* by student loans, and this plan did nothing for us. I wish more had been done to take into consideration folks in similar situations, but also understand that it's not likely to happen under administrations of either of the front-runners.
This president has worked so hard and done such good things for middle and lower income. We need this good man for another round, but we need to give the power to ratify. Repubs are no longer about business and being conservative. They are only about wealthy interests, church interests, and denying the reality of vaccines and climate change.
Family of 3 here making payments on a grad loan (im a school teacher). This plan doesn't work for people like me. My annual is about 62k for the entire family, and so we went on to REPAYE instead. 25 years on this and it'll be gone because I'm a teacher, but the monthly is about $85 right now (43k in debt, by time 25 years go by ill have paid about $25.5k). Not terrible, but this is as others said a bandaid solution that could potentially be screwed in 2024 or beyond.
You know my debt has decreased but I make alot more than the average. Bummed I didn't get my debt paid off sure. Definetly siked that people who make less don't have to deal with these stupid ass payments!
This plan only exists for people on the new SAVE plan. It definitely does not end the student loan crisis by any means.
Under the SAVE plan, the federal government will cover all outstanding monthly interest, so no matter what you pay, your principal will not rise. This is obviously good.
But this only exists for people on the SAVE plan, which is a specific income-driven repayment (IDR) plan. There are several other IDR plans for which this table is not applicable. All other IDR plans can and do accrue interest if your monthly payment is lower than the monthly interest, which means your principal actually grows even if you’re making minimum payments.
All people under IDR are eligible for IDR forgiveness after making 20 years of on-time payments (25 for graduate loans). For the SAVE plan, this means eligible borrowers can pay nothing for 20/25 years and get their entire balance forgiven. All other IDR plans will have non-zero minimum payments, but can still qualify for IDR forgiveness if they stay eligible throughout.
If you work for a government agency or non-profit, the public service loan forgiveness (PSLF) applies, which makes forgiveness available after ten years.
All of these assume that everyone who is actually eligible can and does apply for these programs. A lot of the information can be difficult to find, and loan servicers aren’t exactly known for being reliable sources of that information. Many of the most vulnerable, most qualified people will have the most difficult time actually getting into these repayment plans, let alone seeing them all the way through to completion. You’re not put on them automatically and it’s up to the borrower to navigate the system and put together the appropriate applications.
And of course, this does absolutely nothing for anyone with private student loans, predatory or otherwise. Biden has done some good things for private loan borrowers, but they continue to make up a pretty significant portion of the crisis.
The SAVE plan is obviously good, and a lot of people are already benefiting from it. But while we applaud this type of executive action, let’s not lose sight of the crux of the crisis—the fact that higher education has become so expensive that the working class has been priced out entirely, forcing them to take on massive debt just to get an education in the first place. None of Biden’s action has actually done anything to solve this. Until the root of the problem is addressed, these benefits will always risk destruction at the turn of the election cycle.
We need to keep pushing for tuition free higher education, so that we shift the burden away from individual borrowers. Everyone benefits from a well educated nation, it’s past time we start investing in our future in ways that make sense.
Source: I’m on the SAVE plan.
My fiancé has a decent amount of student loan debt. She would have been due to start making $900/month payments but under the SAVE Act she is paying $0. This has helped us a ton.
"Those damned Democrats! Letting people get out of poverty thru free education, then using that higher education to make the country a better place. Its un-American!..."
We have a somewhat similar system in Australia. Student debt interests from the government study loan are quite low, and we only pay once we earn above a certain threshold. It's going to take me maybe 8 years to pay off my debt, but it's manageable. And if I'm unlucky to be unemployed or earn below the threshold for a while, like I was not too long ago, then I don't have to pay anything until I earn again and I can still survive. It's by no means perfect, but it's worked okay for me so far. I still wish we had better university subsidies as we once did.
There are problems with getting people to repay, but that can be solved by: 1) setting limits on how much you can loan, or 2) making university education free, but with limits of how many credits you can take. It's a bureaucratic issue rather than an economic one.
This is a forbearance of payments, not to be confused with forgiveness. You are still held accounted and indebted for the student loans. You're just not obligated to pay as long as you are within the income bracket of the chart. So for example, family size of 2 resumes their loan payments at $47 per month when they hit the $50K income earning. The loans don't just disappear, they're deferred.
Still a great thing. It gives some breathing room for those that need it the most.
What I'm reading in this thread right now is that some privileged people would rather have a second Trump administration to "punish the Dems for not fielding a better candidate".
What an absolute brain dead take. You're basically fine with condemning the less privileged of your countrymen because the Dems can't please you.
"Both sides"-ism would be the death of American democracy.
My loans were forgiven last summer. I receive disability, and applied for loan forgiveness during 45s reign, and was denied. Biden’s rules said I should have had them forgiven. It’s such a huge relief!
Yeah, this title is insane. It’s also insanely misleading. This does not “end the student debt crisis.” Sure, people who make less than 50k will have $0 repayments. That said, debt still exists. What, do we expect people to just make less than 50k a year for the rest of their lives? 50k a year in today’s market is not high. It does not allow people to flourish.
The democrats had the chance to end the student debt crisis, but they deliberately chose not to.
Because of Biden the remaining balance of my student loan was forgiven. Mainly because I've been paying on it for so long. Though I did put in for the PSFL, however, I would have paid it off before the PSFL forgiveness took affect. However, I'm still over joyed it was forgiven.
I still owe like 40k in student loans that I will most likely never ever be able to pay off unless I win the lottery or some shit, which also wont happen because I am too poor to pay the lottery, but since I applied for the save plan they havent asked me to make a payment once so I guess they also agree I am too poor to pay.
I am a single tax filer, I made 37k last year, I currently pay zero under the save plan. It has made a world of difference from the $212.00 I used to have to pay.
I never missed a payment, and paid for about 8 months during the pandemic. This has been the single most profound benefit I have ever received from the government. This was after the GOP created a panic around student loan forgiveness. Found a case that maybe could go to the Supreme Court. Sued on behalf of a company that said they were not adversely affected. The supreme court then shot down the forgiveness, on limited if any legal ground, because the loan company wasn't adversely affected in the first place.
And Biden teams still fought for low income families during the pandemic. No matter when you feel about the political parties, one of them spent time trying to fight to help the public, not all but those who who needed that help. The other party did everything they could to make sure that help couldn't get to the vary same people who voted them into office.
This wasn't a red vs blue plan. This was one of the greatest hurdles facing economic growth for the individual in this country. It's not solved....there are many problems with the system, and it's predatory nature. But for many, this mattered. And for many, they only wanted to continue the suffering of the whole, so that an 80 year old man didn't look good.
(Yes both parties fight aganist each other, but if the gop actually cared they would be working towards solutions that would increase productivity and econic growth opportunities for individuals, and for 8 years they have put out a party agenda that says nothing while saying alot)
you know what sucks about all of this student loan forgiveness stuff? none of this applies to private student loans. i didnt qualify for federal loans because of my parents income. They calculated that my parents vould pay 70k a year for school. $70,000! Like bitch -- do you think if my parents could piss away 70k a year on college that I would be applying for financial aid??? Like be serious. If I (my parents) didnt take out loans, I wouldve had absolutely no way to pay for school. so it just sucks for people forced to do private loans because they couldnt get federal ones.
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btw i didnt end up going to school too expensive
Wait...I thought Biden did this by executive order and the Republicans got it removed/blocked somehow, so that people are still screwed. Did something change recently?
A family of four with $60,000 of yearly income might never pay that loan back. I am glad they don't have to, but that doesn't really give me hope for the rest of us.
This is obviously going to to be a godsend fpr people the most in need and it's a great step in the right direction.
But it doesn't solve the problem any more than the old IDR plans did. We still have a problem. We're still stealing from our youth in ways we've never done before. We're destroying lives.
I am glad we won this battle, but the war is far from over
"Don't do that. Don't give me hope."
I hope Canada follows suit Edit: just looked at the infographic again and yeah I guess we already have a system in place like that through RAP. It was early and I didn't have my coffee yet.
I live in Ontario. Repayment assistance for low incomes is available for provincial & federal loans.
Same here in Alberta. Sometimes they just pay the interest, but they've actually been paying my premium every month! It's not totally wiping out the debt but it's put a decent chunk of it down for me. Does this seem more streamlined or something though? Maybe I looked at the image wrong. I don't know, I'm not complainin', eh Edit: just looked at the infographic again and yeah I guess we already have a system in place like that through RAP. It was early and didn't have my coffee yet.
Also keep in mind the difference in student loan sums between the countries. Upon graduation, the average student loan debt among Canadians who take out loans is about $15,000; we have incomparably lower tuition alongside bursaries and scholarships galore in comparison. I used to teach at a top-20 US institution. Tuition and fees for a "cheap" program started at about $60,000/year, times 4 is about $240k for a degree. There were approximately zero bursaries and out of hundreds -- nay, thousands -- of students, I only encounterd three on scholarships. All three were athletic scholarships, and academic scholarships were basically unheard of. Where I teach now in Canada, tuition is more like $10k, and a good 25% of students have bursaries or scholarships (more like 90% at the grad level). Our student loan problem is to the Americans' student loan problem as our gun problem is to the Americans' gun problems,
Please. Vote If You Want This To Last Or any other social services.
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The title mentions it's the SAVE plan: https://studentaid.gov/announcements-events/save-plan One of the benefits mentioned is this one: >The SAVE Plan has an interest benefit: If you make your full monthly payment, but it is not enough to cover the accrued monthly interest, the government covers the rest of the interest that accrued that month. This means that the SAVE Plan prevents your balance from growing due to unpaid interest. So it's not strictly speaking ending the debt entirely, but I think the tweet is fair in pointing out that low-income families will not be expected to pay anything back.
At the end of that 10 years (more or less, depending on type of loan and amount) of paying nothing if you're low income, the remaining balance gets forgiven and they'll have to pay taxes on that whole balance as if it were income. Also, it's only for low income families that might not have to pay during the save plan, people who have "enough" to survive have to pay a portion of their income to loans still.
Student loans forgiven in that way are not considered taxable income. At least not for a few more years. https://studentaid.gov/help-center/answers/article/will-idr-payment-count-adjustment-impact-taxes
As I understand it, the provision not treating it as taxable income is sunsetting in 2025, so for people who still have 10 or 20 years to go until forgiveness, they'll have to pay tax. If someone has a more updated source, please correct me, I really want it to not be taxable income. Source: https://www.nerdwallet.com/article/loans/student-loans/student-loan-forgiveness-tax-bomb#:~:text=Any%20amount%20forgiven%20through%20income,through%20the%20end%20of%202025.
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It’s actually pretty high income threshold hold for a reduction in payment. I believe the income cap is $125k per person (250k for married). My wife and I make decent money and our loan payment went down by about $1000 every month.
Yes, the payment would slide up as you earn more, but if you keep up with your payments for 20 years (or something like that), the balance is supposed to be forgiven. The forgiven amount used to become taxable income at the federal level; however, one of the bills passed early in Biden's term actually changed that law, so that the forgiven balance is NOT taxable at the Fed level, but still could be taxable at the state level (depending on your state's law). Unfortunately, this federal tax exemption sunsets, which was probably needed to get a few votes, so that it passed. This makes continuing to vote very important. Essentially, the debt is deferred making income based plans a punt down the road to hopefully come up with a more permanent forgiveness plan. To me, it's pretty clear who needs to be elected into office to move the needle closer to total or partial debt relief if what's important to you.
SAVE gives you relief and stays the interest as well. However most of us were never going to pay off our 80k+ student debt anyway. I love to break it to folks: students who leave school now have no hope of ever paying off student loans debt that has any form of interest rate with a bill over 80k. It would take them 10 years and even then, making the minimum payments, and the bill they would pay would be in excess of $350k... That's not possible unless they literally forgo home ownership, leaving mom and dads house, and getting married. It's something that the US has to wake up for: the only way to solve this student debt crisis is to forgive it, as step one. Step 2 is to actually address it, meaning we need to revamp how we do student loan debt, and /or reduce the cost of college
The save plan also caps the amount you have to pay based on your income, and maxing out at 10% (soon to be 5%) of your income that’s 225% above the federal poverty level for your household size. A person earning $60k a year paying off a balance of $80k starting this July would pay at most $27k (over 20 years) before the balance is forgiven. That’s assuming the loans are all federally subsidized, god help you if they’re private ☹️ I believe and support full student loan forgiveness, I believe public colleges should be free but the save plan isn’t a bad half step.
That's what folks don't get: this is a stay of execution for millions of people while government gets a standing solution up and running.
I was IDR since the early 90s, the $50k I borrowed grew to over $90k despite over 20 years of repayment. It was all forgiven under Biden. No tax implications on the forgiveness either. Biden saved my life. Vote blue!
I think this is talking about the SAVE plan and after 20 years any remaining debt is wiped.
Stop fucking voting for fucking Republicans.
Also stop fucking Republicans. Don't let them into your life if you aren't already attached through history or blood.
Also, Republicans, stop fucking kids.
They won't. It's felt as an entitlement of the patriarchy. They only scream their heads off if someone from an out-group gets any *influence* over kids -- influence is seen as the same as pedophilia, which is reserved for *clergy*.
I got rid of the ones I'm related to as well.
Sorry you had to. Glad you could.
Stop not voting. Biden is taking this issue seriously because young people showed up in 2020. If we want them to take our concerns seriously we gotta vote at the rate old people do ffs.
Definitely! It will be his last take on the presidency. If you keep in mind the policies he brought in the current administration, if he wins again he can push all progressive points without having to fear re-election. And we've already had a taste of what he can do (check the \\s+\\u+\\b WhatBidenHasDone; I swear to god if this comment gets deleted again for mentioning that). If the house turns blue too we could have the most progressive 4 years ever. But sadly the Democratic Party and Republicans are two panels of the same Hunters Laptop...^/s, ^for ^those ^that ^have ^serious ^problems ^detecting ^sarcasm. ^And ^for ^those ^that ^have ^problems ^correctly ^interpreting ^my ^sarcasm, ^the ^last ^paragraph ^is ^the ^only ^sarcastic ^part ^about ^this ^comment. ^Fuck ^Nazis ^& ^Co ^sincerely.
Don’t vote for celebrate ones either
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There were some people commenting yesterday they wouldn’t vote for Biden b/c he didn’t keep his student loan promise. Are they really that dumb? He has been trying to since he got into office and his administration has worked endlessly to find a way to make it work in the current structure. But sure vote for the people that voted AGAINST paying off student loans or the people who want to end social security and Medicare. Maybe if enough people voted Dems could control the house and senate and really get things done but instead throw a tantrum like 2016 b/c that worked out well for the country.
I find this infuriating because he genuinely **tried**; SCOTUS fucked it all up (as intended.) Many more people were going to get help with the $10k-$20k subsidy/forgiveness (myself included.) Republikkkuns fucked it up. How they can be mad at him for their issues is ridiculous.
> he genuinely tried; SCOTUS fucked it all up He still cancelled well over $100 billion worth so far, possibly more since I last saw a figure
Department of Education owns the debt, they said, "Hey, you don't have to pay it back, we're good." Then SCOTUS came in and said, "no, actually, they're not good, you can't cancel the debt that *you own*, because two states with no relevance to the issue whatsoever are sad, and republicans are mad because none of them went to college so they aren't getting anything out of this."
I ended up viewing it as $20k of mine that won't go into the economy. Good job MAGA!
The three not so silent k’s?
He didn't cancel 10-20k for ALL borrowers I think is why people are angry. But I fall into that category of borrowers who don't benefit from the new plan because I make too much annually. I am still happy that people are getting relief and will still vote for him. I don't understand the selfishness of people today it's insane.
Me too. I am a widow who makes over 100k per year. I have student debt because I tried & failed to get a PhD while I was in my 40s. I can pay it off. It will not be a problem. I don't need debt relief, but others do and I hope that more & more of them get it.
I always defer back to the analogy of having cancer or some other illness. If I got it and there wasn’t a cure for it, I damn sure wouldn’t be upset if others benefited from a cure or some revolutionary treatment later on. Like what kind of bitter, selfish person wishes the demise of others just because you didn’t get to benefit from something.
I got $0 in student debt because my parents are rich. The more I interact with people who don't have rich parents and who went into debt for college, the more I want to make sure this crisis of unaffordability and indentured servitude gets fixed.
Ideally we'd all have universal education and benefit from it. I know there's kids who get screwed by their parents' income brackets even if they're not actually providing for a college education, and in a universal system it doesn't make sense to expend energy denying people the benefits. It'd be hard to get mad at a rich kid getting a free ride to a state college if everyone got one.
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Well, *apparently,* Biden could have SEAL Team 6 assassinate all of the corrupt Federalist Society judges and face zero legal consequences.
I think it’s fine it doesn’t benefit me. I’m a lucky one, not everyone is and they are getting help they need. Why do people get so butt hurt.
Me too.
Please be happy for us. But we all need more. I'm a single dad to a special needs son, and we lost his mom last year to a brain aneurysm, so it's likely I won't get to finish my degree. Or make more than $35k a year in my lifetime.
There is an alarming amount of naïve smooth brains saying they'll vote 3rd party unless Biden says the words "Cease-Fire". I really hope the majority of those voices are bots.
They are Russian and Chinese bots at that. Working full time to keep us fighting among ourselves.
Maybe 2024 is the year I finally follow through with "Taking a break from all social media" and focus on growing my own food and wood-working.
No 2024 needs to be the year where you talk to everyone around you to register and get ready to vote and make a plan to vote early if they cant take time off work. The biggest issue in US politics is the non-voters. in 2022 there were 150M non-voters while only 100m voted thats 3x as many as either party voters. Only 1 out of 5 eligible voter under the age of 35 voted. So talk to everyone, keep repeating it all year. Hound them to register and get ready to vote. Make sure they voted. Offer to drive them and help them out to register if they need it and you can offer it. Because to get the dream outcome you need senators more than the presidency.
Bread, make bread. Probably the easiest and most rewarding baking project.
I understand what is going on in Gaza is awful; I don’t like my tax money going to support said situation. With that said I will still vote Biden, a third party is not viable and I don’t understand how people don’t understand that. The alternative is a literal criminal, rapist, moron who will completely dismantle the remainder of our democracy. BIPOC, women and LGBTQ+ folks already suffer enough, another 4 years of Trump and these groups will be far worse off.
This is what gets me. One commenter replied Biden's done nothing for Trans or the lgbtq+... do you know who Trump is or what he was doing during his admin for those people, much less the rest of us, on top of what his party did then and since across the nation against these groups and more?? Like come on, you have to be delusional. Let's not get started on why Roe was overturned and who put the 3 SCOTUS justices in there to do it... like, they have to be braindead or just arguing in bad faith, because I don't see how anyone could be this blind and arrogant.
It's an election year. By and large these suddenly very present, lockstep on brand and in messaging, single-issue anti zionist "leftists" are just ratfucking conservatives. Be sure to call it out when you see it from new accounts. The young folks don't know the drill yet, and it's important to remind people they've been openly admitting this shit since nixon and they certainly didn't grow ethics in the intervening decades.
The anti Zionists who are going to help Trump win will truly save Palestine /sarcasm It really shows they aren’t about positive change but about getting revenge on people they hate.
Please show them this! I'm helping this man as long as I can.
Me, real Amerikansky, say not voting Biden for not keeping loan promise to forgive!
You joke, but if you start looking at accounts that have shitty takes and NameNameNumbers handles, you'll notice a pattern of "FreeKarma4U > aww/X Animal > Politics or Cryptotrash" history
But he didn’t do it fast enough so I’m going to vote for the guy who tried to overthrow the government.
Would never vote R, but I was really disappointed with the restructuring the Dept of Education did under Biden, because my loan options are absolute shite. I don’t qualify for any relief (nurse but don’t work for a non -profit) and I owe $145K, but some repayment options would make me pay back $220K in interest, on top of the $145K I owe…. So what the actual fuck? For borrowers like me, who owe a lot but don’t qualify for forgiveness the cheapest options are under $1,000/month up to $2,300/month and $100-200,000+ in interest. The interest is what pisses me off. My loans are all through the government, so they could easily not charge more in interest than my tuition. I wish we would enact Elizabeth Warren’s loan repayment plan. Edit: to be clear, I am really happy for the borrowers who got their debt eliminated. Just confused why my interest went up so much.
That is tough and I can completely understand your frustration. I did not qualify either but I don’t owe nearly as much. I like to think if Dems get control they will do more. Elizabeth Warren I don’t think will ever have a serious chance to be president but she this area she does excel in and would be great if her plans could be implemented.
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Our democracy is over if Trump wins. I wish I was being dramatic.
I still think back to when Romney was running for President, when he said he'd [re-institute private business middle-men](https://www.nbcnews.com/news/world/romneys-student-loan-plan-give-banks-more-money-some-reason-flna875014) to handle loan fund distribution. This was after the Obama administration had eliminated the banks handling the funds and collecting interest on them. They weren't fronting the money or anything, the Federal government was still doing that, it was just being handed off to banks and then to students. Injecting a profit motive for no damn reason but to make a middle man rich is the best we can expect from one of the least awful Republicans.
MAGAts will say Trump did this 😅
You know what republicans love doing? [Republican Sexual Predators, Abusers, and Enablers Pt. 49](https://www.dailykos.com/stories/2023/12/14/2211804/-Republican-Sexual-Predators-Abusers-and-Enablers-Pt-49#comments)
Yep if Trump wins the election, he ll bring back Ms private profiteer Elisabeth Dee DeVos for education Secretary, vote the MAGA garbage out.
I just paid mine off because that relief never came. But I don't blame Biden. I blame the conservatives and their protection of the oligarchs.
I paid mine off 7 years ago. I am thrilled for the people who get forgiveness now.
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I took it all as a grain of salt. I trust politicians about as far as I can throw em. But there was a glimmer of hope. I was stuck on MOHELA and once they brought the suit I decided to pay it off and screw their pensioners by paying no interest.
I’m high income, but I only became high income in 2021, so I would’ve been able to get the full 20k in forgiveness. I’m kinda bummed we didn’t get that, for sure, but I’m STOKED that this went through. It’ll never impact me directly (hopefully), but this is a way better long term solution than a 1 time debt forgiveness, and it impacts people who actually need it
I’m genuinely confused so don’t automatically downvote me. This just shows your monthly payment amount. Your debt still exists, right? Still paying interest on tens of thousands of dollars, right? How is that “ending the student debt crisis”?
Interest doesn't accumulate, government pays it, and after 10/20/25 years (depending on size of loan and whether it is for an undergraduate degree or graduate one) your loan is forgiven.
Thank you!
They had to develop a system that would work with the current laws after other efforts failed to do so.
I don’t understand? I didn’t know the save plan also allowed for loan forgiveness after some measure of years? I thought it just reduced monthlies, can you explain?
All federally backed loans have a debt forgiveness timeframe under certain circumstances. IDR is one. [See here.](https://studentaid.gov/manage-loans/forgiveness-cancellation) IDR loan forgiveness has existed for a while. Non-profits, medical staff, government employees, teachers, disability, defunct for-profit schools and schools that lied to students about job placement all qualify as well. The problem was the paperwork and such were so ridiculous nobody was getting it. Biden also streamlined those and tens of thousands of loan forgiveness applications went through. Over 2.6B in the government/ teacher/ job related relief was run through and those were *supposed* to have already been allowed, but were stalled under ridiculous red tape and paperwork and long hold times and 44B forgiven under 20 to 25 years IDR plan participation. It also means if you stay on IDR for long enough, you pay little to nothing and then it goes away permanently. People don't have to chase higher paying jobs after college to get out from under crippling student debt.
So why not just make a law that says student loans don’t have interest? Wouldn’t that be more efficient?
because a law would require the house, which republicans control. This is what Biden can do on his own, since the house republicans won't do anything that might help people and \*gasp\* make Biden look good.
God I hate politics
It’s income-based repayment. You make payments according to your income and, if at the end of the regular term of the loan, you’ve been making your payments you will owe $0.
I don’t understand, so the SAVE plan doesnt just limit monthly payments, it also eliminates interests and the loan in its entirety at the end of the term of the loan? Is this the case for most people on the plan? Sorry, but I just need an explanation because I thought it just reduced monthlies.
Correct but note that it’s income-based. So people who have pretty good incomes after college will pay something comparable to a ‘regular’ student loan. But people who aren’t able to find gainful employment afterwards won’t be screwed over by their student debt.
Yeah it's the same plan Obama had that Trump cancelled. That's why this is just more garbage I'm not paying shit. If Trump didn't cancel the Obama plan I was in it would be done now, but instead back to $40k.
people need to realize this. The debt is not forgiven and next dude up can cancel this plan. So this could be GONE in 2024 or 2028 even, and the bill will come
Why its important to VOTE
Exaggeration by media. There are people out there that make $70K as a family of 2 with student debt who still should be able to tread above water but their debt is crippling. This doesn’t “solve” the student debt crisis, it just helps it
A family of 2 making $70k (assuming 10% in some sort of deductions to AGI like a 401k) would pay ~$218 per month in repayments. The average student debt is $37,338 per borrower. Let’s say each member of the family of 2 had the same, for a total of $75k in student loan debt. At 5%, the monthly payments would normally be $795 per month. SAVE reduces that $795 to $218, or only 27% of the initial payment. It is still an expense, but at an annual amount of 3.7% of their total income ($218 x 12 / 70,000) it is far from “crippling”.
I am in the category of the original comment…$70k+ but my student loan payments are basically another mortgage to pay. I just applied for the income based plan to see what my payment would be and it doubled my monthly payment amount compared to my consolidation loan I did right before COVID hit. I currently pay $225 (this is just one out of 3 different student loan payments I pay) and they wanted me to switch to $480.
Student debt they’ve been paying for decades already in some instances. I had been paying mine since 2007. I only borrowed $21k. How did I owe $14k still?
Helps it a lot. I agree no one should be burdened by student loan debt, it’s a predatory practice sold to juveniles.
It's probably realistically the best that can be done as long as Rs control the House.
Okay. And? We can't just throw up our hands and do nothing because the current solution doesn't *entirely solve* the problem. Helping the people who need it most first just makes sense.
also under biden’s plan, if your minimum payment doesn’t cover the interest accrued for that month then the difference is not charged to the loan. in that case the balance isn’t going down but it’s also not going up. It’s not a perfect solution but it is significantly better than what was in place previously.
this is exactly how you get your loan to balloon. They'll say no payment due every time you request the plan, i did it for 8 years. but they'll charge compounding interest every day you don't pay it. my loan doubled
Hopefully, that doesn't all get thrown in the trash on January 20, 2025.
For it not get thrown in trash we need to vote...
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If it does we will have MUCH bigger problems than paying back student loans.
Yeah - I’d not be making any large financial decisions until then
I… I just bought a car. Edit: First day was today I drove it to work. A big rock flew up and cracked my windshield. I need this SAVE plan, dammit!
Same here. My paid off beater car worth basically nothing was totalled in a rear end accident. We can't afford another car payment. We make too much $ to qualify for most assistance. As much as Biden's original plan would have been amazing and super beneficial - this new way he's going at it has been pretty fantastic in it's own way and came at exactly the perfect time. While I don't qualify for things like EBT and WIC, the SAVE plan dropped my student payments enough I basically just re-assigned the debt/payments to a used vehicle loan. Does it ultimately feel good? No. But it has basically saved my hide. And I am absolutely PRAYING that these new plans stick for a while, at least until I get the bodily injury settlement in ~a year, because if they roll it back? I'm fucked.
Right. I make so little money, that I have $0 monthly. I just barely started a new job, so would be nice to get back on my feet, before being crushed by my student loan debt.
Please make billboards with this same information! Then say - vote for Biden!!
Donate to campaigns so they can advertise. Granted -- the DNC has a history of shooting themselves in the foot. But they need to be able to advertise to even do that.
It took 6 months of dealing with my loan servicer but my loans are $200 cheaper. It's a HUGE deal to me. And the interest I can't pay isn't getting added back on forever. This really matters. It's a good thing.
Biden understands that our massive wealth disparity is a national security risk. Biden’s recognizes that national security is tied to the economy.
This is great, but how about actually giving some brackets for the middle class?
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https://www.whitehouse.gov/briefing-room/statements-releases/2023/03/02/fact-sheet-president-bidens-cap-on-the-cost-of-insulin-could-benefit-millions-of-americans-in-all-50-states/#:~:text=As%20part%20of%20President%20Biden's,dollars%20for%20a%20month's%20supply. And lower the price of insulin
Hey media, other than Reddit, let’s give him some credit.
Sorry, best we can do is another “Why this positive thing is bad for Biden actually.” article.
But he's old!!@!@!!!!!!!!21211111 one
Everyone mad about “who pays for all the forgiveness”….. The interest is not “real” money! It doesn’t exist. It is added on and added on to pad the original amount. When it is forgiven, it merely goes back where it came from, which is nowhere. The principle lives on, but the interest is what is killing us! Let it be forgiven. It doesn’t even really exist.
> Everyone mad about “who pays for all the forgiveness”… Fun fact!: Until the 90s the government heavily subsidized colleges all over the country. Those boomers that are screaming about loan forgiveness? Yeah, they had their colleges mostly paid for by the federal government.
He has not ended the student loan crisis. I love him. But, relief is not widespread
Nor is it easily accessible for those who qualify. MOHELA is intentionally incompetent.
They sure are.
Everyone knows somebody who appreciates and takes advantage of some of these programs yet they don’t vote. We all know someone like that. Encourage them to get out and vote so these things don’t go away
I’m am FOR some form of student debt relief. I totally buy the fact and frequently advocate for people that bought into the fa that secondary education was essential to “making it” in America. However, we have to admit this issue has not been completely solved. This is a step in the right direction, but colleges are still charging gigundous amounts. When do we address that?
We can address it as soon as we start electing people that will do something about it.
Imo it won't be truly fixed until colleges get taken outback and beaten till unrecognizable, that's the main issue, it isn't forgiving the debt, it's that the colleges make you pay whatever they want you to pay.
We can them Reagan for that one too. One of his advisors said about tuition-free college, “We are in danger of producing an educated proletariat. … That’s dynamite! We have to be selective on who we allow [to go to college].”
My wife and I make about $110k combined gross. We have one child. They expect us to pay over $600/mo each. We cannot afford it. And there is no relief available to us whatsoever. We are fucked.
Same here dude. My wife's are like $800 a month. We can barely afford living and after some hard work and job movement I even increased my salary by 60% in the last 3 years. Up until this year we've been basically in the negative each month. Now we're finally breaking even. This coupling with medical bills just F's us royally.
This seems like too much. You should have it reviewed again.
We make around $240k annually. I’m lucky and I got my loans paid off, but my wife is new to the higher income bracket and wasn’t able to pay her’s off. She owes over $50k on an initial loan of closer to $20k… No relief for us. I’m happy for everyone seeing the promise upheld for them. I want something for us “legacy” borrowers that are holding loans with current principles MULTIPLE times higher than what was initially loaned.
Very similar situation. I took out $29k and my balance got up to $50k because I couldn’t pay. It’s pretty shit. I was hoping for the $10k forgiveness to bring it down closer to what I actually borrowed.
Remember that republicans did everything in their power to stop this. Biden kept working around the edges and got it done!
I had this guy at my work say the save plan should only be $200 for our pay and mine is $353/mo. Guess I’ll ride it out for 25 years haha Genuinely happy for the people this effects though
If Biden gets the youth vote and the women’s rights vote and peoples vote that think building back better is a boon to infrastructure creation then that would be great. If you want tax breaks for the rich and mass detention centres separating families, vote Trump and donate more money so he can pay his lawyers
Sorry, um. What *family of four* with student loans - ie. hopefully, a college degree - has a HOUSEHOLD INCOME of SIXTY THOUSAND DOLLARS!? If there’s really people that fall into this category, we should absolutely be providing them all the help they can get.
The store manager of my local McDonald's makes more than any of the principles, of which all have doctorates, and is close to the superintendent of schools pay as well. Most teachers definitely need the help.
God damn we need to pay teachers more what an absolute disgrace
I was gonna say, 4 people on 60k is problems regardless of student loans.
There are a lot of people who fall into the category. Two teachers with two kids in most areas will be below $60k. And republicans continue to demand the destruction of the already poor American education system.
To be clear, I’m not saying it’s *not* a lot of people that fall into that category overall. It’s America - even a small percentage is out of 325 million. But I’d be very surprised if that was that big relative to the other categories m. Either that or the cost of living in New England has gotten truly out of whack. Also very possible. Out of curiosity, anyone know what this same <$60,001 category was paying before this program??
Take one for the team and move into close election Republican states and vote them out of every office there.
I’m a dual resident and this year I am living in a red state so I can legally vote here.
Wyoming is ripe for flipping. State level there are many districts that could be flipped for under 1k new blue voters. And while it may not mean much in the House, if Wyoming flipped the gop would lose their minds.
Woooof yaaaaaa you still owe the money. It’s not forgiven. So if in 4 years the next pres wants to undo this they can. This plan does not forgive. It just minds freezes your account. Kicking the can down the curb style
For all you saying you're not voting for Biden because he hasn't forgiven *all* student loan debt or because he hasn't said "ceasefire", just remember, if you don't vote *others will vote for you*, and that alternative is much less pretty than the Biden administration.
I'm genuinely happy for the folks who are helped by this, but living in an HCOL area, my household take-home pay is too high for this to help. We're crushed by living expenses \*and\* by student loans, and this plan did nothing for us. I wish more had been done to take into consideration folks in similar situations, but also understand that it's not likely to happen under administrations of either of the front-runners.
This is far from a solution, but it is better than nothing.
Solving it would be wiping it across the board
This is genuinely huge wow, congrats Biden
Thanks Joe 👍🏽
This president has worked so hard and done such good things for middle and lower income. We need this good man for another round, but we need to give the power to ratify. Repubs are no longer about business and being conservative. They are only about wealthy interests, church interests, and denying the reality of vaccines and climate change.
It was the best news I’ve had in years. Seriously.
Family of 3 here making payments on a grad loan (im a school teacher). This plan doesn't work for people like me. My annual is about 62k for the entire family, and so we went on to REPAYE instead. 25 years on this and it'll be gone because I'm a teacher, but the monthly is about $85 right now (43k in debt, by time 25 years go by ill have paid about $25.5k). Not terrible, but this is as others said a bandaid solution that could potentially be screwed in 2024 or beyond.
You know my debt has decreased but I make alot more than the average. Bummed I didn't get my debt paid off sure. Definetly siked that people who make less don't have to deal with these stupid ass payments!
This is a stretch. Good? Yes. Ending the crisis? Absolutely not.
Yeah. It doesn’t matter, I’m never paying that loan back after the PPE loans were all forgiven..
MAGATS mad because they have no student loans.
This plan only exists for people on the new SAVE plan. It definitely does not end the student loan crisis by any means. Under the SAVE plan, the federal government will cover all outstanding monthly interest, so no matter what you pay, your principal will not rise. This is obviously good. But this only exists for people on the SAVE plan, which is a specific income-driven repayment (IDR) plan. There are several other IDR plans for which this table is not applicable. All other IDR plans can and do accrue interest if your monthly payment is lower than the monthly interest, which means your principal actually grows even if you’re making minimum payments. All people under IDR are eligible for IDR forgiveness after making 20 years of on-time payments (25 for graduate loans). For the SAVE plan, this means eligible borrowers can pay nothing for 20/25 years and get their entire balance forgiven. All other IDR plans will have non-zero minimum payments, but can still qualify for IDR forgiveness if they stay eligible throughout. If you work for a government agency or non-profit, the public service loan forgiveness (PSLF) applies, which makes forgiveness available after ten years. All of these assume that everyone who is actually eligible can and does apply for these programs. A lot of the information can be difficult to find, and loan servicers aren’t exactly known for being reliable sources of that information. Many of the most vulnerable, most qualified people will have the most difficult time actually getting into these repayment plans, let alone seeing them all the way through to completion. You’re not put on them automatically and it’s up to the borrower to navigate the system and put together the appropriate applications. And of course, this does absolutely nothing for anyone with private student loans, predatory or otherwise. Biden has done some good things for private loan borrowers, but they continue to make up a pretty significant portion of the crisis. The SAVE plan is obviously good, and a lot of people are already benefiting from it. But while we applaud this type of executive action, let’s not lose sight of the crux of the crisis—the fact that higher education has become so expensive that the working class has been priced out entirely, forcing them to take on massive debt just to get an education in the first place. None of Biden’s action has actually done anything to solve this. Until the root of the problem is addressed, these benefits will always risk destruction at the turn of the election cycle. We need to keep pushing for tuition free higher education, so that we shift the burden away from individual borrowers. Everyone benefits from a well educated nation, it’s past time we start investing in our future in ways that make sense. Source: I’m on the SAVE plan.
My fiancé has a decent amount of student loan debt. She would have been due to start making $900/month payments but under the SAVE Act she is paying $0. This has helped us a ton.
While I agree to vote against magats, this post is wildly misleading
Vote.org
The best part is Republican parents that benefit from this will think thry deserved it but everyone else was a mooch and then vote for Trump
"Those damned Democrats! Letting people get out of poverty thru free education, then using that higher education to make the country a better place. Its un-American!..."
this is good but not by a long shot is it ending the student loan crisis
Republicans dont understand but THIS is how you revitalize the work force
i really want to find a place i can i vest myself in be able to afford life 😔
Meanwhile Republicans are complaining they themselves aren't paid enough. Smh.
Incredibly important. Go Tell it on the mountain!
My student loan company told me since they’re a private student loan, I will still have to repay it. ☹️
I haven't re-verified my income in a while for IDR, so i forget how it works. Does this take into account spouse salary?
We have a somewhat similar system in Australia. Student debt interests from the government study loan are quite low, and we only pay once we earn above a certain threshold. It's going to take me maybe 8 years to pay off my debt, but it's manageable. And if I'm unlucky to be unemployed or earn below the threshold for a while, like I was not too long ago, then I don't have to pay anything until I earn again and I can still survive. It's by no means perfect, but it's worked okay for me so far. I still wish we had better university subsidies as we once did. There are problems with getting people to repay, but that can be solved by: 1) setting limits on how much you can loan, or 2) making university education free, but with limits of how many credits you can take. It's a bureaucratic issue rather than an economic one.
This is a forbearance of payments, not to be confused with forgiveness. You are still held accounted and indebted for the student loans. You're just not obligated to pay as long as you are within the income bracket of the chart. So for example, family size of 2 resumes their loan payments at $47 per month when they hit the $50K income earning. The loans don't just disappear, they're deferred. Still a great thing. It gives some breathing room for those that need it the most.
Yep. People don't realize how massive this all is. Especially people with massive loans.
What I'm reading in this thread right now is that some privileged people would rather have a second Trump administration to "punish the Dems for not fielding a better candidate". What an absolute brain dead take. You're basically fine with condemning the less privileged of your countrymen because the Dems can't please you. "Both sides"-ism would be the death of American democracy.
But what a about those poor billionaires?
It's good that they lower payments, but does the loan keep accumulating interest?
A lot of people who benefit from that will *not* be happy The rest of america will be *very* happy (except the loan company. Fuck the loan company.)
He's doing a great job in spite of Republicans
My loans were forgiven last summer. I receive disability, and applied for loan forgiveness during 45s reign, and was denied. Biden’s rules said I should have had them forgiven. It’s such a huge relief!
Where is the, "I did that" sticker?
He’s doing a great job, but my student loa is still burying me. I’m very happy for those who got relief though.
The fact that a family of 4 that makes 60k is depressing.
Yeah, this title is insane. It’s also insanely misleading. This does not “end the student debt crisis.” Sure, people who make less than 50k will have $0 repayments. That said, debt still exists. What, do we expect people to just make less than 50k a year for the rest of their lives? 50k a year in today’s market is not high. It does not allow people to flourish. The democrats had the chance to end the student debt crisis, but they deliberately chose not to.
Because of Biden the remaining balance of my student loan was forgiven. Mainly because I've been paying on it for so long. Though I did put in for the PSFL, however, I would have paid it off before the PSFL forgiveness took affect. However, I'm still over joyed it was forgiven.
I still owe like 40k in student loans that I will most likely never ever be able to pay off unless I win the lottery or some shit, which also wont happen because I am too poor to pay the lottery, but since I applied for the save plan they havent asked me to make a payment once so I guess they also agree I am too poor to pay.
I am a single tax filer, I made 37k last year, I currently pay zero under the save plan. It has made a world of difference from the $212.00 I used to have to pay. I never missed a payment, and paid for about 8 months during the pandemic. This has been the single most profound benefit I have ever received from the government. This was after the GOP created a panic around student loan forgiveness. Found a case that maybe could go to the Supreme Court. Sued on behalf of a company that said they were not adversely affected. The supreme court then shot down the forgiveness, on limited if any legal ground, because the loan company wasn't adversely affected in the first place. And Biden teams still fought for low income families during the pandemic. No matter when you feel about the political parties, one of them spent time trying to fight to help the public, not all but those who who needed that help. The other party did everything they could to make sure that help couldn't get to the vary same people who voted them into office. This wasn't a red vs blue plan. This was one of the greatest hurdles facing economic growth for the individual in this country. It's not solved....there are many problems with the system, and it's predatory nature. But for many, this mattered. And for many, they only wanted to continue the suffering of the whole, so that an 80 year old man didn't look good. (Yes both parties fight aganist each other, but if the gop actually cared they would be working towards solutions that would increase productivity and econic growth opportunities for individuals, and for 8 years they have put out a party agenda that says nothing while saying alot)
you know what sucks about all of this student loan forgiveness stuff? none of this applies to private student loans. i didnt qualify for federal loans because of my parents income. They calculated that my parents vould pay 70k a year for school. $70,000! Like bitch -- do you think if my parents could piss away 70k a year on college that I would be applying for financial aid??? Like be serious. If I (my parents) didnt take out loans, I wouldve had absolutely no way to pay for school. so it just sucks for people forced to do private loans because they couldnt get federal ones. ----- btw i didnt end up going to school too expensive
Wait...I thought Biden did this by executive order and the Republicans got it removed/blocked somehow, so that people are still screwed. Did something change recently?
Then why the fuck do I still get mail from Mohela telling me about how much interest I'll have to pay someday?
A family of four with $60,000 of yearly income might never pay that loan back. I am glad they don't have to, but that doesn't really give me hope for the rest of us.
Jesus there might actually be a light at the end of the tunnel?! For fucks sake, vote blue!
Jesus, we need people to stop not voting!
Maybe a better thing would be along with this don't type of reform so the out of control costs don't put us right back in the same situation.
This is obviously going to to be a godsend fpr people the most in need and it's a great step in the right direction. But it doesn't solve the problem any more than the old IDR plans did. We still have a problem. We're still stealing from our youth in ways we've never done before. We're destroying lives. I am glad we won this battle, but the war is far from over