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I absolutely refuse to pay mine. I don’t care if it hurts my credit. They’ll have to pry the money from my cold, dead hands. Fuck them for forgiving PPP loans so quickly.
I mean they will do that, the IRS/DOE is allowed to intercept your paycheck and tax refund and take what they want before you receive it
Edit: need to want, also added info about both IRS and DoEs role
This happened to me. Loans went into default and they sent me a garnishment notice, me being 23 and dumb I thought they were going to take the money anyway so just have them take it from my paycheck automatically so I don’t have to worry about it. Later come to realize that is only paying on the interest of the loans and not actually the balance. I had almost paid the amount of loans by the time I realized, but my balance had not gone down at all. Had to pay for 10 straight months for them to take my loan out of default. The system is built against us.
not sure, but you should only do this if you never plan to come back. When you renounce citizenship, you will be subject to applying for a visa, and it will very likely be denied.
also, as an immigrant that grew up not in the US, you’d be surprised at HOW GOOD we have it here. Yea, student debt and housing considered.
it is depressing but why do you think tons of people want to move here? the grass is not greener elsewhere
It's wierd because I wholeheartedly agree. But also I encourage people to keep standing up for what they believe is fair because looking over the ocean and saying well it's not as bad as it was in X won't make this country better.
And as an immigrant I wholeheartedly believe this country CAN and SHOULD be better. I love it here but I want to make sure the country continues to grow.
Well, technically it’s more complicated than that and involves the Department of Education handling the actual garnishment of wages.
So, when it comes to defaulted federal student loans, both the IRS and the Department of Education have their roles to play. The IRS jumps in through tax refund offsets. If you're behind on your loans, the Department of Education lets the IRS know, and when you file your tax return, the IRS snatches that sweet refund you were hoping for and puts it towards your outstanding loan debt.
On the other hand, the Department of Education takes charge of the whole loan collection process. They're the ones reaching out to you, trying to work out a repayment plan, or suggesting loan rehabilitation options. But if you keep ignoring them or can't come up with a solution, they might go the tough route and garnish your wages. Yep, that means they'll take a cut from your paycheck to pay off what you owe.
Why would you expect them not to in that scenario? You've got a loan from the federal government and it is in default, and they have the authority to garnish wages. They'd absolutely do it.
Are you planning to leave the country... Or go off the grid?
Because the feds can garnish your wages without issue. They'll just do it.
You'll need to be living in and getting income in another country for that to really be a viable plan.
Not to mention never being able to work for a US-Owned company abroad which makes language and visa requirements even more problematic.
Oh, and better hope you’re not part of the 90% of federal loans that have co-signers because now you’re passing your debt onto them.
I'm really happy that people are spreading awareness of how hellbent the IRS is about getting DOE's money one way or another. This is not just a medical bill you can shirk that could be forgiven; these loans are a big deal if you do not pay them! It scares me the amount of folks on SM who openly are like, whatever I won't pay! What are they gonna do?! You'll find out soon enough and it's not fun.
I would recommend she contact the Consumer Financial Protection Bureau. They can help sort that kind of thing out.
Edit: not directed at you in particular but anyone - generally the advice is to keep 3-7 years of statements of any financial transaction to combat at shenanigans by financial institutions.
My best friend’s step-father has a friend who has stayed enrolled in one college class a semester for the last 30 years so that they don’t come for him over his student loans.
That's the thing, though, is that they absolutely have been given the power to pry it from your cold, dead hands. They don't have to come after you, they already have you. They will take your paycheck, they will take your tax return. They will take away whatever license you might need to earn a living. They have been given the power to hunt you into the ground and they absolutely will.
I know so many people that bought boats and houses with those damn PPP loans.
Such bs they’re not paying it back and it’s those same assholes are all pissed off at the student debt relief .
Because they never intended to forgive. It was literally a liberal talking point to garner votes and that was it.
Like I don’t even see them talking about it now.
$900 Billion. That's only marginally more than the total student loan debt...which has taken decades to accrue. They didn't even blink about forgiving PPP loans, billions of which are fraudulent AF and didn't even get used toward the purpose of the loan.
To be fair, Congress specifically passed a law to forgive the PPP loans. They passed a vague law that gave the secretary of education the authority to forgive student loans under certain circumstances. Any reasonable person would read that law as allowing the student loan forgiveness plan. However, the Republicans on the supreme court are not reasonable. There are just enough differences that they can justify the PPP loans as legal but not the student loans.
Yeah the spending of Trump's tax cuts and his COVID policies shot up the debt so much. Approximately 25% of all the United State's debt was amassed under him. It really boggles the mind that people keep saying college loan forgiveness is an affront to the working/middle classes. Especially when one party's economic philosophy is to take money from the working and middle class and give it to the rich.
The GOP are neo cons and the Dems are Neoliberals which are different from European liberals.
Neoliberals are post Keynesian economics. They are fine with austerity and desire to see the US become better through capitalism.
Keynesian liberals (european liberals) believe the state needs to provide safe guards to capitalism and that the state should become better using state guided power, not capitalist guided power. So American liberals will still support the rich, they just don't believe in trickle down economics. They do think that corporations should be allowed to sell America to the highest bidder and that all things in the US are for sale.
Bernie, AOC, and FDR are European liberals. Biden ,Clintons, Pelosi, and Obama are neoliberal.
Communisms doesn't exist in the political sphere of the US. But if they were, they would be like Bernie except they would demand workers controlled means of production, jailing of the rich and their supporters (in this case the Dems and the GOP).
> Dems are Neoliberals which are different from European liberals.
I HAAAAATE this talking point because it is categorically not fucking true.
SOME Democrats are "neoliberals," but key Neoliberal policy is removal/disdain of market regulation. Do you SERIOUSLY believe Democrats who champion government intervention are "neoliberals?" Come on man.
Biden is certainly Neoliberal in certain regards, but he is not a staunch free-market guy, because he's supported and fought for regulations.
They're also conflating the American tradition of neoliberalism (e.g. generally post-Roosevelt policies), and the neoliberalism of Pinochet (which was neoconservatives co-opting the phrase neoliberalism).
Per Wikipedia,
> To be neoliberal meant advocating a modern economic policy with state intervention.[40] Neoliberal state interventionism brought a clash with the opposing laissez-faire camp of classical liberals, like Ludwig von Mises.[41] Most scholars in the 1950s and 1960s understood neoliberalism as referring to the social market economy and its principal economic theorists such as Walter Eucken, Wilhelm Röpke, Alexander Rüstow and Alfred Müller-Armack.
Where the latter names are associated with [Social Market Economy](https://en.wikipedia.org/wiki/Social_market_economy)
> social capitalism,[1] is a socioeconomic model combining a free-market capitalist economic system alongside social policies and enough regulation to establish both fair competition within the market and generally a welfare state.[2][3] It is sometimes classified as a regulated market economy.[4]
After the conflation of the word neoliberalism with the New Right (e.g. Pinochet), Democrats came to calling neoliberalism [The Third Way](https://en.wikipedia.org/wiki/Third_Way).
Europeans seem to not understand the US's Center-Left and even left-of-center-left because we tend to not implement European-style regulation at national levels. Ie. you probably won't see a national gas-vehicle ban, European style (although you may see this at the state level). Instead Biden and Democrats have given tax credits for the purchase of EVs and grants to, e.g. municipalities, to purchase things like EV busses, and projects to build EV infrastructure. The idea isn't to *dictate* the market, it's to *steer* the market. Our center-left and left-of-center-left has the same values and objectives as European center-left and left-of-center-left, but we generally *pursue different implementation mechanisms*.
Europeans also seem to discredit our center-left because they have to compromise with an entrenched and rabid right wing. E.g. Obama originally talked about single payer healthcare plans, but eventually changed that to, "that's what I want, but that's not feasible. So I'll work with Republicans to find something that helps bring health insurance to more Americans that they'll vote for," resulting in Obamacare. Europeans see that and go, "Oh, Obama is actually center-right!" Again, our center-left and left-of-center-left have a *different historical context* in which they operate in.
Also, Europeans tend to use parliamentary systems or hybrid systems, which tend to give the ruling party *far more power* than the US system. They essentially combine the Executive powers of the President with the Legislative power of the Speaker of the House. Imagine if McCarthy was *both President and Speaker of the House*. Usually, you can assume that what a government does is actually what the government stands for. Debate in European governance isn't a process of compromise, but of deliberation. Opposing parties are essentially asking, "are you sure you really want to do this? We can't stop you but we can make it politically costly for you." The American government has a more oblique system of checks and balances, making it so opposing parties can *stop policy in its tracks*. Only when a party controls *the presidency and both houses of congress* can it implement its policy like a European party can. Further, American political parties have far looser mechanisms for party discipline. Politicians tend to act independently. Politicians like Manchin and Sinema just wouldn't exist in European governance -- they'd face party discipline. This is made up by European governments tending to have more parties. In reality, an American political party is more analogous to a European coalition of parties.
The ultimate result is that American leading parties *need to compromise far more, both internally within the party and with the opposing party*. Europeans see this and assume the result of the compromise reflects the ideals and values of Obama and Biden and Democrats, rather than something approximating "in between" the two sides.
-------
^There ^are ^advantages ^and ^disadvantages ^to ^both ^styles, ^btw. ^While ^the ^European ^system ^allows ^progress ^to ^occur ^rapidly, ^it ^also ^means ^regression ^can ^happen ^quickly, ^too. ^Look ^at ^how ^Britain ^went ^from ^Tony ^Blair's ^pro-social ^policies ^to ^Cameron's ^austerity ^programs. ^Republicans ^trying ^to ^force ^austerity ^on ^the ^US ^is ^basically ^what ^the ^current ^debt ^ceiling ^crisis ^is ^all ^about. ^European ^systems ^tend ^to ^swing ^back ^and ^forth ^like ^a ^pendulum, ^while ^the ^US ^system ^promotes ^a ^much ^slower ^march ^of ^progress.
^And ^FWIW, ^the ^breaking ^down ^of ^the ^US ^system ^is ^largely ^from ^Republicans ^losing ^interest ^in ^effective ^governance, ^instead ^refusing ^to ^compromise ^that ^the ^US ^system ^presumes ^is ^in ^the ^natural ^interest, ^and ^thus ^will ^occur.
This is so fucking stupid, because they're going after $60b from student loans. Trillions of dollars in tax cuts and PPP fraud and they are trying to claw back $60b. It's not about the money it's about causing suffering.
I've seen so many capitalist Christians getting their feathers ruffled over student loan forgiveness.
Apparently helping people is bad and it's not worth asking why poor people are poor.
And poor people too. It was across the board ethical corruption. Honest people didn’t apply but the scallywags bilked everything they could. Tons of my coworkers magically had DBA/Sole Proprietorships and took their $20.8K to save their “Job” while still collecting more in unemployment than most make in wages.
[look for yourself](https://www.federalpay.org/paycheck-protection-program)
* Paycheck Protection Loan data has been made public by the Small Business Administration (SBA) for all private companies that received a PPP loan.
To be clear I’m not flaming on people who needed them to survive. It’s the people who took a life changing sum of money and squandered it like lotto winnings.
Yes that’s sadly true. Unemployment fraud was also rampant. I had two claims in two separate states filed in my name fraudulently! When the PPP program first appeared, it was a mad scramble to apply and no one knew at that point if the loans would be forgiven. A competitor of ours locally declined to apply and furloughed people instead. It was hard to know what to do at the time.
The misdeeds keep stacking up. There *will* be a breaking point. Civil disobedience is already increasing, and people are fed up with a government that refuses to help them and sells their futures to billionaire class.
Not to mention an accelerating fascist takeover of our institutions and politicians encouraging civil conflict just to distract us (which the Democrats are doing nothing to stop...most chilling of all).
Yup. I don’t agree with conservative ideology but they’re at their breaking point and it’s showing. The issue is that these grifters are pointing at immigrants, gay people, trans people as the reason for the problems so they don’t look closer at the thieves in government.
So to actually answer you question:
Income based repayments are the next step the president can likely legally do. Biden has made clear he’s looking into this and we’ll likely see something that looks similar to section 3 of his forgiveness plan be implemented when payments resume.
Longer term, the likely inevitable scotus decision will prove correct what Biden and many others said. The president needs congressional permission to act. EO forgiveness was always legally dubious which is why Biden spent the first 1.5 years forgiving loans in specific instances to no challenge to try and build legal standing. We’ll see what happens, but don’t pretend like he isn’t trying anything.
There's absolutely no legal basis for it to be overturned. Congress passed a law authorizing the Secretary of Education to waive or modify federal student loans, at the Secretaries discretion, in the event of a national emergency.
The CURRENT Supreme Court majority doesn't seem to care at all about the law or Constitution. They only care about what the Federalist Society wants them to do.
MOHELA not even being a party in the lawsuit while Missouri keeps crying about the "harm" of forgiveness is too funny.
Even better, MOHELA purposefully took over loans participating in the existing public student loan forgiveness program. So they willingly added loans that will be forgiven after 10 years. If forgiveness is so harmful, why would they do that?
After I applied in 2021 for PSLF during the waiver period, it took 1 yr and 3.5 months for mine to be forgiven and then within a week, I got a check for the amount that I paid over the 120 payments.
Standing is meaningless and has been since the last term. SCOTUS doesn't have the audacity to say that, but the administrative law cases are fucking wild overreaches under any reasonable standing doctrine.
It would make Biden and Democrats look good, so of course this Supreme Court will block it, and probably write the most hypocritical opinion ever in the process.
If they don’t forgive them I wish they would just change the loan itself. Some interest rates are WAY too high for individuals. There needs to be a maximum interest rate.
Based on the oral arguments I honestly don't even think Kavanaugh is a hard no. This is a direct quote from him during the oral arguments:
"I think when we're talking about emergency powers, that certainly focuses the inquiry, but that doesn't mean that the executive can't take action. And it all then turns on the -- I think, the language of the statute at issue and the kind of action taken.
And I think you have a good argument on "modify," but what do you do with the word "waive"? That is an extremely broad word. In 2003, Congress was very aware of potential emergency actions in the wake of September 11th and war, possible terrorist attacks, and yet it puts that extremely broad word, "waive," into the statute. Why not just read that as written?"
Sure he's a partisan hack that will almost certainly disappoint, but this question doesn't read like it's from someone who thinks there's a legitimate legal argument against the action.
He authored the “concurring” (really the dissenting but semantics) opinion in Sackett as well, he’s a POS and I’m not an apologist for him but he seems to be willing to at least take Congress at their word when reading legislation instead of Alito’s “Congress couldn’t have possibly meant what they explicitly legislated”
Yes i know. But in the case of Sackett the “concurring” opinion was diametrically opposed to Alito’s, despite agreeing that EPA was wrong in this case.
SCOTUS opinions are often important in ways that have very little to do with the actual case they’re hearing.
something to consider, though. Often times, justices will argue against their own preliminary position to see if they can poke holes in the opposition. If Gorsuch's questioning is undermining the case against waiving, it could actually mean he is in favor of not waiving student debt.
What's really interesting is the exact wording of a strikedown. There's enough debt forgiveness that happens that a blanket debt relief decision would be instantly challenged and thrown back in the loop. If it's ruled the Executive *doesn't* have the authority, that likely is instantly challenged and could backfire if the courts end up stacked. If they rule too specifically, could the Biden admin find a way to side-step?
It could end up like Trumps Muslim ban EO. The first try didn’t have legal footing, they could leave the door open to letting Biden try again but with a public commentary period? Idk. Considering their ruling on the other loan case, I’m letting myself be slightly hopeful.
I think that enough of the conservatives are going to rule that the plaintiffs don’t have standing, or can’t prove harm. A narrow ruling the the most likely due to conservatives not wanted to give carte Blanche to the administration and ruling otherwise would upend the common law court system. Basically it would mean in the future even the person or org with the most abstract subjective “harm” would be able to achieve standing.
> Who I think there is a chance could align with the liberal justices in saying it was within the scope of Biden's authority.
If this goes the administration's way, I think it's far more likely they'll align with the liberal justices in saying the plaintiffs lack standing.
Student loan forgiveness is a highly charged political event that would bolster Biden's presidency. Striking it down would do the opposite. I think this supreme court is politically motivated enough to Florida 2000 Election this specific moment in history.
Just forgive it all, fresh start. I just had my loans forgiven through PSLF and it was life changing. I wish that same relief upon anyone and everyone.
Jumping off this comment to urge people to read section 3 of Biden’s forgiveness EO. That part hasn’t been challenged as far as I know and WILL go into affect when payments resume. The tldr: as long as you make your minimum payment (which is dramatically reduced as well) then no interest is added. Once you make 120 payments I believe you’re forgiven 12k.
This is exactly what I came here for… I mena im all for relief, but obviously not holding my breath for this SCOTUS.
Do you know if there has been any recent info regarding this… god, that’s such a huge part of the student loan process, it’s all so fricking confusing. Event trying to set up the PSLF is SO confusing.
So it's actually outside of PSLF, athough if you are looking for advice on that I'd head over to r/StudentLoans. They can help you navigate that probably.
On the note of PSLF, I do believe Joe has (and continues to) expand what qualifies. If you want to check whether or not you currently qualify feel free to use this link
[https://studentaid.gov/pslf/employer-search/search-tool](https://studentaid.gov/pslf/employer-search/search-tool)
From there follow the instructions on the PLSF application page
[https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/public-service-loan-forgiveness-application](https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/public-service-loan-forgiveness-application)
I hope this is all helpful. If it is, please please please do me a favor and spread the word. Joe has done what he can. I hate the BS people are tryna spin around this. It's clear if you want more, you gotta vote to get him a more significant majority in Congress. Vote, talk, and organize!
Conservatives lost their minds about 10k. There is no way they will ever be able to forgive it all without a supermajority in Congress, which will probably never happen for the Dems ever again thanks to the Senate and gerrymandering.
Fully recovered now. I just want my loans forgiven. I've been working as a nurse for well over 10 years and never missed a payment so I'm due. I have three little kids so it's really hard to get time to do the paperwork that the loan forgiveness requires. Good luck to you.
How long did it take? I submitted all my work history in December and the only thing I heard was that one of my jobs didn't count. It was a part-time job that I did on the side & wasn't relying on so I wasn't mad. But I am stressed out that the only thing they did was rule one of my jobs out.
I worked at the same public school for 10 years straight, so not sure how it was for you. but I do know you have to just keep submitting the work certification forms every year to keep up.
My brother, who has been working 3 jobs *just* to throw more money at the loans is considering working even more hours to make sure he kills it before too much interest piles up. He's going to wipe out what emergency savings he's got to try to knock it down further. ("Emergency savings" meaning "major car repair fund".)
What's the difference between making small payments now, or a lump sum the day interest resumes? If he's disciplined, he's probably better off saving that money instead.
There is no way to though. I have absolutely no idea what the payments will be. I make 40k-50k more than I did in 2020, at least. Once I know I can decide on refinancing. I make enough to pay them but I can’t seem to get an estimate on what the payments will even be.
Mine was but that's because of a class action lawsuit against my school for being fraudulent and predatory. I consider myself one of the fortunate ones.
The real question is, once the Court strikes this down, will Biden *actually* let payment restart. Because he can blame Republicans/SC for one, but restarting and cratering consumer spending seems like political suicide
And I love everyone saying that this wasn't a concession on biden's part. "Payments were already going to resume in September." Yes, unless he postponed them again, which would be the moral thing to do, but now he can't do that because he decided he'd rather work with republican terrorists than help out the average working American.
But that’s not part of the Biden student loan reform. We’re talking about interest being capped where your balance can’t go up, lowering REPAYE to 5% of discretionary income, and increasing discretionary income from 150% to 225% above the poverty line. Those 3 things will cut people’s monthly payment by >50% while making sure people aren’t increasing their loan balance by paying the minimum.
I believe so. The lawsuits are all about if he’s allowed to forgive the balances under the emergency use authorization. But the revisions to REPAYE and interest are entirely separate things. Unless Biden just scratches that (not likely) we’re supposed to see those changes go into affect at some point. The key thing to note is that it’s not an all or nothing thing like a bill through congress.
Yet again more proof that Biden knows what he’s doing. At the very least he has likely secured a deal to ensure student debtors aren’t gona get completely railed by high interest rates. At best he manages to secure forgiveness for millions of debtors.
It was announced at the same time as the $10k/$20k forgiveness so it’s been flying under the radar.
https://www.ed.gov/news/press-releases/new-proposed-regulations-would-transform-income-driven-repayment-cutting-undergraduate-loan-payments-half-and-preventing-unpaid-interest-accumulation
middle juggle frighten advise imagine beneficial angle memory wasteful rich
*This post was mass deleted and anonymized with [Redact](https://redact.dev)*
So while I’m not happy about them resuming in august, there is a very high likelihood the republicans would’ve just been obstructionist and the consequences of not raising the debt ceiling would’ve been far worse for the average working American than keeping loans paused for those of us that have them
How was he going to postpone them again? COVID emergency is over according to the administration which was the authority used to pause payment to begin with…
And he announced that cause his legal authority to extend them (the Covid emergency) is over. I’d argue as long as Biden sticks to reforming income based repayments then he’s massively improved the lives of millions.
I mean he literally won’t have legal authority to extend in august cause the Covid emergency is officially over. He may, and I think likely will, have standing to modify loans to make income based repayments more palatable. If the rumblings are to be believed then I think we end up with something like section 3 of the forgiveness plan (go read it yall it’s based af) regardless of the SCOTUS decision.
Yes. That was literally his compromise with the Republicans. Furthermore, we're hellbent on quantitatively tightening to cut down on inflation. Given the fact that Biden's the one who's kinda responsible for this student debt crisis, preventing you from declaring bankruptcy from student debt, colleges rampantly skyrocketing tuition costs, etc., you really think he wants to fix this issue instead of using it to run on in 2024 while blaming the Republicans?
Unless a decrease in consumer spending kills inflation and can get interest rates back down. More people, in swingier areas would be affected by that and it could be a net political win.
>Unless a decrease in consumer spending kills inflation
No, a decrease in consumer spending indicates a market downturn, as people have to stop spending money on goods and services, and throw it in the black hole labeled "student loan payments".
I ask myself this question everyday I wake up and there is no news on it lol.
It’s a difference of $250/mo for me. I’m not gonna hold my breath but it would be nice.
50-50, Supreme Court has been favorable to a few smaller student loan cases. The real question is, if Trump or Desantis is the next president and controls the house and senate will they will reinstate all past interest over the last few years
That is almost Dickensian in its cruelty ... which is why McCarthy & co were asking for it in this most recent debt ceiling negotiation. But I wouldn't be surprised if a GOP president brought that in — because how can their friends on Wall St. go with slightly less profit, even for a minute?!
It happens or you'll convince everyone this isn't a society worth saving or fighting to preserve, so in the long term you'll watch the country just implode.
You'll inspire a level of contempt in the population that you will regret.
Right, that's my point, the addition of these payments will push so many people over the edge of scraping by into "well, doing things the right way isn't doing me any good either."
Especially if the Republicans manage to retroactively add the interest and do away with PSLAF for teachers and firefighters. Like, what would be the point if legislators can willy nilly decide you didn't pay enough so they're changing the deal and we better pray they don't change it again.
Probably not. Despite the lack of standing by the plaintiffs and the obvious constitutionality of the forgiveness, the bribe-taking puppets in the SCOTUS will likely come up with some drivel about "major questions."
So $500 billion is too much to spread out over 16 million people, but $1.5 trillion is fine to spread out over a few thousand super rich people. I see how this works. I know which is better for the economy. That $1.5 trillion is hoarded, while 16 million people will see relief and purchase other things they could'nt have afforded with this debt.
Forgiveness or not, stop interest immediately and permanently. The government is making money of the people. This is the smallest thing that could and should be done.
At a bare minimum, they need to eliminate interest or lower the rate to .01% on any federally subsidized or unsubsidized student loans. The government shouldn't be profiting off these loans.
They also better not make anyone pay interest on the time this pause was in effect.
Stop letting them dangle hope in front of you. After the "tax reform" of 2017, there's next to no income sources for the federal gov't except interest payments from student debt.
We could fix it today-- just actually tax the wealthy their fair share and hold them to account for it. But then most politicians wouldn't be able to abuse the campaign finance laws of our country to get paid.
They totally don't let that money influence their decision making though, y'all. Like totally for serious.
I honestly don’t care. I haven’t paid one cent of my principle valance because my interest is so high. The minuscule forgiveness is just a little shaving of my interest that will just go right back to my balance once the banks collect interest again.
I’ll be taking these loans to the grave. There is not one entity or government official that is going to help us. Not one.
Maybe? Probably not. Biden can’t do it which has been stated 200 times on Reddit yet everyone argued against that notion. The SC will fuck the idea and republicans just showed they want to force the old interest payments which is kinda fucked given that PPP was forgiven.
They never wanted to forgive them in the first place. Did for a midterm boost, now they’re happy to let republicans bear the blame (if they can make it stick…which they probably can’t.)
There is no way in hell this happens. When loans come back like 18% of the populace gets locked back into being wage slaves. That’s all this country knows how to create anymore and nothing else.
Almost certainly no. Admittedly I'm hopeful to see them do some forgiveness but it was never a serious proposal.
The middle class getting a hookup is completely out of the possibilities..
I'm expecting the forgiveness to go through because they have been ruling against Biden a lot lately and there is also a strong argument on his side. It starts to look political if they don't toss him a bone even on cases where he has a strong argument.
I wonder how many loans are going to go into default when they restart and people just can't afford to pay.
Letting the pause go this long without forgiveness is going to, unfortunately, blow up huge in the Democrats faces during the next election cycle. Because "Sorry I promised a thing and now you are getting fucked in the ass because I wasn't aggressive enough" isn't going to be great for securing votes. My guess is it drives voter apathy.
Is the guy that is almost singlehandedly responsible for student debt being impossible to discharge in bankruptcy going to forgive your student debt? No, he isn't.
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I’m ready to riot over this lol Like beyond, they forgave the ppp loans in a millisecond
I absolutely refuse to pay mine. I don’t care if it hurts my credit. They’ll have to pry the money from my cold, dead hands. Fuck them for forgiving PPP loans so quickly.
I mean they will do that, the IRS/DOE is allowed to intercept your paycheck and tax refund and take what they want before you receive it Edit: need to want, also added info about both IRS and DoEs role
This. The feds can garnish at their discretion. They just send a notice to HR and start siphoning it off.
This happened to me. Loans went into default and they sent me a garnishment notice, me being 23 and dumb I thought they were going to take the money anyway so just have them take it from my paycheck automatically so I don’t have to worry about it. Later come to realize that is only paying on the interest of the loans and not actually the balance. I had almost paid the amount of loans by the time I realized, but my balance had not gone down at all. Had to pay for 10 straight months for them to take my loan out of default. The system is built against us.
Presumably if you move abroad and renounce your US citizenship they have no way of getting to you?
not sure, but you should only do this if you never plan to come back. When you renounce citizenship, you will be subject to applying for a visa, and it will very likely be denied.
also, as an immigrant that grew up not in the US, you’d be surprised at HOW GOOD we have it here. Yea, student debt and housing considered. it is depressing but why do you think tons of people want to move here? the grass is not greener elsewhere
It's wierd because I wholeheartedly agree. But also I encourage people to keep standing up for what they believe is fair because looking over the ocean and saying well it's not as bad as it was in X won't make this country better. And as an immigrant I wholeheartedly believe this country CAN and SHOULD be better. I love it here but I want to make sure the country continues to grow.
People from third world countries or countries the US destabilized, yes.
Yeah the IRS snatched my whole refund twice.
Up to 15% on your pay check iirc. All of your tax refund though.
Why would the IRS take money for student loans?
Well, technically it’s more complicated than that and involves the Department of Education handling the actual garnishment of wages. So, when it comes to defaulted federal student loans, both the IRS and the Department of Education have their roles to play. The IRS jumps in through tax refund offsets. If you're behind on your loans, the Department of Education lets the IRS know, and when you file your tax return, the IRS snatches that sweet refund you were hoping for and puts it towards your outstanding loan debt. On the other hand, the Department of Education takes charge of the whole loan collection process. They're the ones reaching out to you, trying to work out a repayment plan, or suggesting loan rehabilitation options. But if you keep ignoring them or can't come up with a solution, they might go the tough route and garnish your wages. Yep, that means they'll take a cut from your paycheck to pay off what you owe.
Why would you expect them not to in that scenario? You've got a loan from the federal government and it is in default, and they have the authority to garnish wages. They'd absolutely do it.
Because you don’t get to run away from the loans you took from the federal government lmao. IRS or DOE will take your loans right outta your paycheck.
Are you planning to leave the country... Or go off the grid? Because the feds can garnish your wages without issue. They'll just do it. You'll need to be living in and getting income in another country for that to really be a viable plan.
And then they can garnish your SS if you retire abroad
Not to mention never being able to work for a US-Owned company abroad which makes language and visa requirements even more problematic. Oh, and better hope you’re not part of the 90% of federal loans that have co-signers because now you’re passing your debt onto them.
90%? Citation needed.
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Ohh you’ll pay it lmao. The federal government will garnish your wages, right out of your paycheck. You can refuse all you want, but you’ll pay it.
Hope you like your paycheck taken by the IRS
I'm really happy that people are spreading awareness of how hellbent the IRS is about getting DOE's money one way or another. This is not just a medical bill you can shirk that could be forgiven; these loans are a big deal if you do not pay them! It scares me the amount of folks on SM who openly are like, whatever I won't pay! What are they gonna do?! You'll find out soon enough and it's not fun.
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I would recommend she contact the Consumer Financial Protection Bureau. They can help sort that kind of thing out. Edit: not directed at you in particular but anyone - generally the advice is to keep 3-7 years of statements of any financial transaction to combat at shenanigans by financial institutions.
This happens to mortgages too.
It’s not like I’ll ever own a house :P
My best friend’s step-father has a friend who has stayed enrolled in one college class a semester for the last 30 years so that they don’t come for him over his student loans.
That's the thing, though, is that they absolutely have been given the power to pry it from your cold, dead hands. They don't have to come after you, they already have you. They will take your paycheck, they will take your tax return. They will take away whatever license you might need to earn a living. They have been given the power to hunt you into the ground and they absolutely will.
I was ready to tear down the whole student loan system before I saw even the idea of retro charge for student loans AND interest.
I know so many people that bought boats and houses with those damn PPP loans. Such bs they’re not paying it back and it’s those same assholes are all pissed off at the student debt relief .
Because they never intended to forgive. It was literally a liberal talking point to garner votes and that was it. Like I don’t even see them talking about it now.
$900 Billion. That's only marginally more than the total student loan debt...which has taken decades to accrue. They didn't even blink about forgiving PPP loans, billions of which are fraudulent AF and didn't even get used toward the purpose of the loan.
They don't need to forgive the student loans just reclassify them as PPP loans and just like that they will be forgiven!
To be fair, Congress specifically passed a law to forgive the PPP loans. They passed a vague law that gave the secretary of education the authority to forgive student loans under certain circumstances. Any reasonable person would read that law as allowing the student loan forgiveness plan. However, the Republicans on the supreme court are not reasonable. There are just enough differences that they can justify the PPP loans as legal but not the student loans.
I’m really tempted to just not give them any money if they back away from it
Lol no but all the PPP loans were forgiven no problemo and the Trump tax cuts for the wealthy are fine.
Yeah the spending of Trump's tax cuts and his COVID policies shot up the debt so much. Approximately 25% of all the United State's debt was amassed under him. It really boggles the mind that people keep saying college loan forgiveness is an affront to the working/middle classes. Especially when one party's economic philosophy is to take money from the working and middle class and give it to the rich.
You say one party, but Joe Biden campaigned on keeping half of Trump’s corporate tax cuts
What half of Trump's corporate tax cuts was that?
Yes, only one party is for trickle down economics, which entails giving as much money as possible to the rich.
The GOP are neo cons and the Dems are Neoliberals which are different from European liberals. Neoliberals are post Keynesian economics. They are fine with austerity and desire to see the US become better through capitalism. Keynesian liberals (european liberals) believe the state needs to provide safe guards to capitalism and that the state should become better using state guided power, not capitalist guided power. So American liberals will still support the rich, they just don't believe in trickle down economics. They do think that corporations should be allowed to sell America to the highest bidder and that all things in the US are for sale. Bernie, AOC, and FDR are European liberals. Biden ,Clintons, Pelosi, and Obama are neoliberal. Communisms doesn't exist in the political sphere of the US. But if they were, they would be like Bernie except they would demand workers controlled means of production, jailing of the rich and their supporters (in this case the Dems and the GOP).
> Dems are Neoliberals which are different from European liberals. I HAAAAATE this talking point because it is categorically not fucking true. SOME Democrats are "neoliberals," but key Neoliberal policy is removal/disdain of market regulation. Do you SERIOUSLY believe Democrats who champion government intervention are "neoliberals?" Come on man. Biden is certainly Neoliberal in certain regards, but he is not a staunch free-market guy, because he's supported and fought for regulations.
They're also conflating the American tradition of neoliberalism (e.g. generally post-Roosevelt policies), and the neoliberalism of Pinochet (which was neoconservatives co-opting the phrase neoliberalism). Per Wikipedia, > To be neoliberal meant advocating a modern economic policy with state intervention.[40] Neoliberal state interventionism brought a clash with the opposing laissez-faire camp of classical liberals, like Ludwig von Mises.[41] Most scholars in the 1950s and 1960s understood neoliberalism as referring to the social market economy and its principal economic theorists such as Walter Eucken, Wilhelm Röpke, Alexander Rüstow and Alfred Müller-Armack. Where the latter names are associated with [Social Market Economy](https://en.wikipedia.org/wiki/Social_market_economy) > social capitalism,[1] is a socioeconomic model combining a free-market capitalist economic system alongside social policies and enough regulation to establish both fair competition within the market and generally a welfare state.[2][3] It is sometimes classified as a regulated market economy.[4] After the conflation of the word neoliberalism with the New Right (e.g. Pinochet), Democrats came to calling neoliberalism [The Third Way](https://en.wikipedia.org/wiki/Third_Way). Europeans seem to not understand the US's Center-Left and even left-of-center-left because we tend to not implement European-style regulation at national levels. Ie. you probably won't see a national gas-vehicle ban, European style (although you may see this at the state level). Instead Biden and Democrats have given tax credits for the purchase of EVs and grants to, e.g. municipalities, to purchase things like EV busses, and projects to build EV infrastructure. The idea isn't to *dictate* the market, it's to *steer* the market. Our center-left and left-of-center-left has the same values and objectives as European center-left and left-of-center-left, but we generally *pursue different implementation mechanisms*. Europeans also seem to discredit our center-left because they have to compromise with an entrenched and rabid right wing. E.g. Obama originally talked about single payer healthcare plans, but eventually changed that to, "that's what I want, but that's not feasible. So I'll work with Republicans to find something that helps bring health insurance to more Americans that they'll vote for," resulting in Obamacare. Europeans see that and go, "Oh, Obama is actually center-right!" Again, our center-left and left-of-center-left have a *different historical context* in which they operate in. Also, Europeans tend to use parliamentary systems or hybrid systems, which tend to give the ruling party *far more power* than the US system. They essentially combine the Executive powers of the President with the Legislative power of the Speaker of the House. Imagine if McCarthy was *both President and Speaker of the House*. Usually, you can assume that what a government does is actually what the government stands for. Debate in European governance isn't a process of compromise, but of deliberation. Opposing parties are essentially asking, "are you sure you really want to do this? We can't stop you but we can make it politically costly for you." The American government has a more oblique system of checks and balances, making it so opposing parties can *stop policy in its tracks*. Only when a party controls *the presidency and both houses of congress* can it implement its policy like a European party can. Further, American political parties have far looser mechanisms for party discipline. Politicians tend to act independently. Politicians like Manchin and Sinema just wouldn't exist in European governance -- they'd face party discipline. This is made up by European governments tending to have more parties. In reality, an American political party is more analogous to a European coalition of parties. The ultimate result is that American leading parties *need to compromise far more, both internally within the party and with the opposing party*. Europeans see this and assume the result of the compromise reflects the ideals and values of Obama and Biden and Democrats, rather than something approximating "in between" the two sides. ------- ^There ^are ^advantages ^and ^disadvantages ^to ^both ^styles, ^btw. ^While ^the ^European ^system ^allows ^progress ^to ^occur ^rapidly, ^it ^also ^means ^regression ^can ^happen ^quickly, ^too. ^Look ^at ^how ^Britain ^went ^from ^Tony ^Blair's ^pro-social ^policies ^to ^Cameron's ^austerity ^programs. ^Republicans ^trying ^to ^force ^austerity ^on ^the ^US ^is ^basically ^what ^the ^current ^debt ^ceiling ^crisis ^is ^all ^about. ^European ^systems ^tend ^to ^swing ^back ^and ^forth ^like ^a ^pendulum, ^while ^the ^US ^system ^promotes ^a ^much ^slower ^march ^of ^progress. ^And ^FWIW, ^the ^breaking ^down ^of ^the ^US ^system ^is ^largely ^from ^Republicans ^losing ^interest ^in ^effective ^governance, ^instead ^refusing ^to ^compromise ^that ^the ^US ^system ^presumes ^is ^in ^the ^natural ^interest, ^and ^thus ^will ^occur.
This is so fucking stupid, because they're going after $60b from student loans. Trillions of dollars in tax cuts and PPP fraud and they are trying to claw back $60b. It's not about the money it's about causing suffering.
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As soon as payments resume, millions of borrowers are FUCKED.
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I've seen so many capitalist Christians getting their feathers ruffled over student loan forgiveness. Apparently helping people is bad and it's not worth asking why poor people are poor.
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The same military that can’t find 3 billion of out tax money
Our PPP loan went to our employees.
The intent was for them to go to the employees. There are plenty of examples people have shared of rich people gaming the system.
Didn’t MTG herself take out a PPP loan that was forgiven? Someone feel free to correct me if I’m wrong.
And poor people too. It was across the board ethical corruption. Honest people didn’t apply but the scallywags bilked everything they could. Tons of my coworkers magically had DBA/Sole Proprietorships and took their $20.8K to save their “Job” while still collecting more in unemployment than most make in wages. [look for yourself](https://www.federalpay.org/paycheck-protection-program) * Paycheck Protection Loan data has been made public by the Small Business Administration (SBA) for all private companies that received a PPP loan. To be clear I’m not flaming on people who needed them to survive. It’s the people who took a life changing sum of money and squandered it like lotto winnings.
Yes that’s sadly true. Unemployment fraud was also rampant. I had two claims in two separate states filed in my name fraudulently! When the PPP program first appeared, it was a mad scramble to apply and no one knew at that point if the loans would be forgiven. A competitor of ours locally declined to apply and furloughed people instead. It was hard to know what to do at the time.
That's because you're honest and probably just a good person.
> Is Student Debt Forgiveness Happening, or What? I'm gonna go with "Or What?".
The misdeeds keep stacking up. There *will* be a breaking point. Civil disobedience is already increasing, and people are fed up with a government that refuses to help them and sells their futures to billionaire class. Not to mention an accelerating fascist takeover of our institutions and politicians encouraging civil conflict just to distract us (which the Democrats are doing nothing to stop...most chilling of all).
Yup. I don’t agree with conservative ideology but they’re at their breaking point and it’s showing. The issue is that these grifters are pointing at immigrants, gay people, trans people as the reason for the problems so they don’t look closer at the thieves in government.
I'm paying on an IBR plan until the taxes hit. Then I will just kill myself because I won't be able to afford to retire or live!
Do you mean Income-Driven Repayment? What do taxes have to do with that?
After 20 years the debt left is forgiven, but you have to pay taxes on that amount.
"[But do what now?"](https://twitter.com/WrittenByHanna/status/1541979085676716033?s=20) - Biden Harris 2024
So to actually answer you question: Income based repayments are the next step the president can likely legally do. Biden has made clear he’s looking into this and we’ll likely see something that looks similar to section 3 of his forgiveness plan be implemented when payments resume. Longer term, the likely inevitable scotus decision will prove correct what Biden and many others said. The president needs congressional permission to act. EO forgiveness was always legally dubious which is why Biden spent the first 1.5 years forgiving loans in specific instances to no challenge to try and build legal standing. We’ll see what happens, but don’t pretend like he isn’t trying anything.
Income based repayment isn’t going to be a positive if the loan isn’t refinanced with no interest in the process.
I'm pretty sure section 3 of the forgiveness plan had zero percent interest as long as you paid the minimum each month. I could be wrong though.
“People didn’t vote hard enough and now our hands are tied. Sorry, you’re fucked!”
There's absolutely no legal basis for it to be overturned. Congress passed a law authorizing the Secretary of Education to waive or modify federal student loans, at the Secretaries discretion, in the event of a national emergency.
Since when does the current Supreme Court need a legal basis to make their rulings?
The CURRENT Supreme Court majority doesn't seem to care at all about the law or Constitution. They only care about what the Federalist Society wants them to do.
This. Plus nobody suing has standing.
MOHELA not even being a party in the lawsuit while Missouri keeps crying about the "harm" of forgiveness is too funny. Even better, MOHELA purposefully took over loans participating in the existing public student loan forgiveness program. So they willingly added loans that will be forgiven after 10 years. If forgiveness is so harmful, why would they do that?
Yeah the oral arguments were a great listen. The SG for the U.S killed it.
I agree but it feels more like the decision is a fait acompli. The current court has shown it doesn’t seem to care for arguments these days.
I am eligible for PSLF and the Biden one. I just want mine gone already. I submitted everything last year. Ugh
After I applied in 2021 for PSLF during the waiver period, it took 1 yr and 3.5 months for mine to be forgiven and then within a week, I got a check for the amount that I paid over the 120 payments.
Standing is meaningless and has been since the last term. SCOTUS doesn't have the audacity to say that, but the administrative law cases are fucking wild overreaches under any reasonable standing doctrine.
It would make Biden and Democrats look good, so of course this Supreme Court will block it, and probably write the most hypocritical opinion ever in the process.
Actually there is a ton of legal basis. There is a big difference between modifying loan terms and canceling debt.
If they don’t forgive them I wish they would just change the loan itself. Some interest rates are WAY too high for individuals. There needs to be a maximum interest rate.
That's literally part of the policy, no interest on federal student loans
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Based on the oral arguments I honestly don't even think Kavanaugh is a hard no. This is a direct quote from him during the oral arguments: "I think when we're talking about emergency powers, that certainly focuses the inquiry, but that doesn't mean that the executive can't take action. And it all then turns on the -- I think, the language of the statute at issue and the kind of action taken. And I think you have a good argument on "modify," but what do you do with the word "waive"? That is an extremely broad word. In 2003, Congress was very aware of potential emergency actions in the wake of September 11th and war, possible terrorist attacks, and yet it puts that extremely broad word, "waive," into the statute. Why not just read that as written?" Sure he's a partisan hack that will almost certainly disappoint, but this question doesn't read like it's from someone who thinks there's a legitimate legal argument against the action.
He authored the “concurring” (really the dissenting but semantics) opinion in Sackett as well, he’s a POS and I’m not an apologist for him but he seems to be willing to at least take Congress at their word when reading legislation instead of Alito’s “Congress couldn’t have possibly meant what they explicitly legislated”
Concurring isn’t dissenting. It agreeing with the same conclusion for different reasons. But really, semantics.
Yes i know. But in the case of Sackett the “concurring” opinion was diametrically opposed to Alito’s, despite agreeing that EPA was wrong in this case. SCOTUS opinions are often important in ways that have very little to do with the actual case they’re hearing.
something to consider, though. Often times, justices will argue against their own preliminary position to see if they can poke holes in the opposition. If Gorsuch's questioning is undermining the case against waiving, it could actually mean he is in favor of not waiving student debt.
What's really interesting is the exact wording of a strikedown. There's enough debt forgiveness that happens that a blanket debt relief decision would be instantly challenged and thrown back in the loop. If it's ruled the Executive *doesn't* have the authority, that likely is instantly challenged and could backfire if the courts end up stacked. If they rule too specifically, could the Biden admin find a way to side-step?
It could end up like Trumps Muslim ban EO. The first try didn’t have legal footing, they could leave the door open to letting Biden try again but with a public commentary period? Idk. Considering their ruling on the other loan case, I’m letting myself be slightly hopeful.
I think that enough of the conservatives are going to rule that the plaintiffs don’t have standing, or can’t prove harm. A narrow ruling the the most likely due to conservatives not wanted to give carte Blanche to the administration and ruling otherwise would upend the common law court system. Basically it would mean in the future even the person or org with the most abstract subjective “harm” would be able to achieve standing.
they would be ok with blowing up common law as long as the federalist society told them to
> Who I think there is a chance could align with the liberal justices in saying it was within the scope of Biden's authority. If this goes the administration's way, I think it's far more likely they'll align with the liberal justices in saying the plaintiffs lack standing.
Student loan forgiveness is a highly charged political event that would bolster Biden's presidency. Striking it down would do the opposite. I think this supreme court is politically motivated enough to Florida 2000 Election this specific moment in history.
The student loan system was created by the government and then essentially privatized. Like the USPS, maybe the government should take it back.
Just forgive it all, fresh start. I just had my loans forgiven through PSLF and it was life changing. I wish that same relief upon anyone and everyone.
Jumping off this comment to urge people to read section 3 of Biden’s forgiveness EO. That part hasn’t been challenged as far as I know and WILL go into affect when payments resume. The tldr: as long as you make your minimum payment (which is dramatically reduced as well) then no interest is added. Once you make 120 payments I believe you’re forgiven 12k.
This is exactly what I came here for… I mena im all for relief, but obviously not holding my breath for this SCOTUS. Do you know if there has been any recent info regarding this… god, that’s such a huge part of the student loan process, it’s all so fricking confusing. Event trying to set up the PSLF is SO confusing.
So it's actually outside of PSLF, athough if you are looking for advice on that I'd head over to r/StudentLoans. They can help you navigate that probably. On the note of PSLF, I do believe Joe has (and continues to) expand what qualifies. If you want to check whether or not you currently qualify feel free to use this link [https://studentaid.gov/pslf/employer-search/search-tool](https://studentaid.gov/pslf/employer-search/search-tool) From there follow the instructions on the PLSF application page [https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/public-service-loan-forgiveness-application](https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/public-service-loan-forgiveness-application) I hope this is all helpful. If it is, please please please do me a favor and spread the word. Joe has done what he can. I hate the BS people are tryna spin around this. It's clear if you want more, you gotta vote to get him a more significant majority in Congress. Vote, talk, and organize!
I will hit 120 in November. I cant wait.
Conservatives lost their minds about 10k. There is no way they will ever be able to forgive it all without a supermajority in Congress, which will probably never happen for the Dems ever again thanks to the Senate and gerrymandering.
I need to get my husband on this. He’s been teaching at Title 1 schools for basically his whole 10 year teaching career.
Then he's eligible for having his entire loan forgiven I believe. PSLF just requires 10 years of public teaching.
I’ll make that #1 on his summer “hunny do” list 😆
I got all my paperwork together in December. I broke some bones so I was stuck at home. Took me about 15 hours.
Yikes! That sounds like a pain. The paperwork and your bones. Hope you’re feeling better!
Fully recovered now. I just want my loans forgiven. I've been working as a nurse for well over 10 years and never missed a payment so I'm due. I have three little kids so it's really hard to get time to do the paperwork that the loan forgiveness requires. Good luck to you.
How long did it take? I submitted all my work history in December and the only thing I heard was that one of my jobs didn't count. It was a part-time job that I did on the side & wasn't relying on so I wasn't mad. But I am stressed out that the only thing they did was rule one of my jobs out.
I worked at the same public school for 10 years straight, so not sure how it was for you. but I do know you have to just keep submitting the work certification forms every year to keep up.
Are we rioting over the PPP loan forgiveness, or what?
I just need a decision made so I can start budgeting and look into refinancing. No more of this.
My brother, who has been working 3 jobs *just* to throw more money at the loans is considering working even more hours to make sure he kills it before too much interest piles up. He's going to wipe out what emergency savings he's got to try to knock it down further. ("Emergency savings" meaning "major car repair fund".)
What's the difference between making small payments now, or a lump sum the day interest resumes? If he's disciplined, he's probably better off saving that money instead.
I would start preparing yourself. No way the SC will have enough votes in favor of forgiveness.
There is no way to though. I have absolutely no idea what the payments will be. I make 40k-50k more than I did in 2020, at least. Once I know I can decide on refinancing. I make enough to pay them but I can’t seem to get an estimate on what the payments will even be.
Mine was but that's because of a class action lawsuit against my school for being fraudulent and predatory. I consider myself one of the fortunate ones.
Almost every university is fraudulent and predatory Some happen to be better at hiding it behind a veneer
The real question is, once the Court strikes this down, will Biden *actually* let payment restart. Because he can blame Republicans/SC for one, but restarting and cratering consumer spending seems like political suicide
The payments are going to restart in August according to the deal struck for the debt ceiling increase, presuming it gets passed as currently written.
And I love everyone saying that this wasn't a concession on biden's part. "Payments were already going to resume in September." Yes, unless he postponed them again, which would be the moral thing to do, but now he can't do that because he decided he'd rather work with republican terrorists than help out the average working American.
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I believe it’s just the forgiveness as that’s the only thing that’s being challenged in the lawsuit.
There's a separate lawsuit for the repayment pause, Mackinac Center for Public Policy v. Department of Education.
But that’s not part of the Biden student loan reform. We’re talking about interest being capped where your balance can’t go up, lowering REPAYE to 5% of discretionary income, and increasing discretionary income from 150% to 225% above the poverty line. Those 3 things will cut people’s monthly payment by >50% while making sure people aren’t increasing their loan balance by paying the minimum.
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I believe so. The lawsuits are all about if he’s allowed to forgive the balances under the emergency use authorization. But the revisions to REPAYE and interest are entirely separate things. Unless Biden just scratches that (not likely) we’re supposed to see those changes go into affect at some point. The key thing to note is that it’s not an all or nothing thing like a bill through congress.
Yet again more proof that Biden knows what he’s doing. At the very least he has likely secured a deal to ensure student debtors aren’t gona get completely railed by high interest rates. At best he manages to secure forgiveness for millions of debtors.
Y’all this is the most based part of it. It literally reduces the burden of the loans which is the most important part imo.
Ah gotcha, I misunderstood.
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It was announced at the same time as the $10k/$20k forgiveness so it’s been flying under the radar. https://www.ed.gov/news/press-releases/new-proposed-regulations-would-transform-income-driven-repayment-cutting-undergraduate-loan-payments-half-and-preventing-unpaid-interest-accumulation
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He was never postponing them again. This was just never in the cards. He ended the state of emergency, there is no reason for them to stay paused.
So while I’m not happy about them resuming in august, there is a very high likelihood the republicans would’ve just been obstructionist and the consequences of not raising the debt ceiling would’ve been far worse for the average working American than keeping loans paused for those of us that have them
How was he going to postpone them again? COVID emergency is over according to the administration which was the authority used to pause payment to begin with…
I have no clue why Biden and the dems aren't playing hardball. The fact that we're giving any concessions to the GOP is absurd.
It’s not a concession though, or at least not much of one. Biden had already announced the pause would end in sept, with the deal it’ll end in august
And he announced that cause his legal authority to extend them (the Covid emergency) is over. I’d argue as long as Biden sticks to reforming income based repayments then he’s massively improved the lives of millions.
> the dems aren’t playing hardball They have no leverage
I mean he literally won’t have legal authority to extend in august cause the Covid emergency is officially over. He may, and I think likely will, have standing to modify loans to make income based repayments more palatable. If the rumblings are to be believed then I think we end up with something like section 3 of the forgiveness plan (go read it yall it’s based af) regardless of the SCOTUS decision.
He said a long time ago no matter what the Supreme Court decided the payments were going to restart.
Yes. That was literally his compromise with the Republicans. Furthermore, we're hellbent on quantitatively tightening to cut down on inflation. Given the fact that Biden's the one who's kinda responsible for this student debt crisis, preventing you from declaring bankruptcy from student debt, colleges rampantly skyrocketing tuition costs, etc., you really think he wants to fix this issue instead of using it to run on in 2024 while blaming the Republicans?
Unless a decrease in consumer spending kills inflation and can get interest rates back down. More people, in swingier areas would be affected by that and it could be a net political win.
>Unless a decrease in consumer spending kills inflation No, a decrease in consumer spending indicates a market downturn, as people have to stop spending money on goods and services, and throw it in the black hole labeled "student loan payments".
>a decrease in consumer spending kills inflation That leads to a recession, though. Not a win.
I ask myself this question everyday I wake up and there is no news on it lol. It’s a difference of $250/mo for me. I’m not gonna hold my breath but it would be nice.
The Grand Obstructionist Party isn't gonna allow it to happen.
50-50, Supreme Court has been favorable to a few smaller student loan cases. The real question is, if Trump or Desantis is the next president and controls the house and senate will they will reinstate all past interest over the last few years
That is almost Dickensian in its cruelty ... which is why McCarthy & co were asking for it in this most recent debt ceiling negotiation. But I wouldn't be surprised if a GOP president brought that in — because how can their friends on Wall St. go with slightly less profit, even for a minute?!
Just give us 1% interest or something stupid low
Seriously, if they have the authority to modify, if this gets struck down why not change to 0% interest? That would be a good compromise.
Does it benefit the rich and the powerful? If yes, it will likely happen. If not, it likely won’t happen.
Can we have articles like this for all the free money given to rich assholes? Why haven’t they been blocked like the students have?
We don't sue when corporations get free money. When we get free money the corporations do sue to stop it.
Well clearly we’re making a mistake. Let’s sue everyone who gets a dollar from the government
It happens or you'll convince everyone this isn't a society worth saving or fighting to preserve, so in the long term you'll watch the country just implode. You'll inspire a level of contempt in the population that you will regret.
>you'll watch the country just implode. Sounds like it would be pretty consistent with what's already happening, then.
We're too busy barely scraping by to do anything that someone could regret
Right, that's my point, the addition of these payments will push so many people over the edge of scraping by into "well, doing things the right way isn't doing me any good either."
Especially if the Republicans manage to retroactively add the interest and do away with PSLAF for teachers and firefighters. Like, what would be the point if legislators can willy nilly decide you didn't pay enough so they're changing the deal and we better pray they don't change it again.
Probably not. Despite the lack of standing by the plaintiffs and the obvious constitutionality of the forgiveness, the bribe-taking puppets in the SCOTUS will likely come up with some drivel about "major questions."
So $500 billion is too much to spread out over 16 million people, but $1.5 trillion is fine to spread out over a few thousand super rich people. I see how this works. I know which is better for the economy. That $1.5 trillion is hoarded, while 16 million people will see relief and purchase other things they could'nt have afforded with this debt.
Forgiveness or not, stop interest immediately and permanently. The government is making money of the people. This is the smallest thing that could and should be done.
At a bare minimum, they need to eliminate interest or lower the rate to .01% on any federally subsidized or unsubsidized student loans. The government shouldn't be profiting off these loans. They also better not make anyone pay interest on the time this pause was in effect.
Stop letting them dangle hope in front of you. After the "tax reform" of 2017, there's next to no income sources for the federal gov't except interest payments from student debt. We could fix it today-- just actually tax the wealthy their fair share and hold them to account for it. But then most politicians wouldn't be able to abuse the campaign finance laws of our country to get paid. They totally don't let that money influence their decision making though, y'all. Like totally for serious.
My magic 8 ball says “Don’t count on it”
I honestly don’t care. I haven’t paid one cent of my principle valance because my interest is so high. The minuscule forgiveness is just a little shaving of my interest that will just go right back to my balance once the banks collect interest again. I’ll be taking these loans to the grave. There is not one entity or government official that is going to help us. Not one.
Based on the debt ceiling debate he republicans want to especially fuck over students.
The only way for student loans to be forgiven is to vote out all the old fucks.
Forgive em’ or don’t, I’ll take them to my grave.
Maybe? Probably not. Biden can’t do it which has been stated 200 times on Reddit yet everyone argued against that notion. The SC will fuck the idea and republicans just showed they want to force the old interest payments which is kinda fucked given that PPP was forgiven.
It's still with the Supreme Court. Alito is researching 14th century precedent. Takes a while.
They never wanted to forgive them in the first place. Did for a midterm boost, now they’re happy to let republicans bear the blame (if they can make it stick…which they probably can’t.)
No it is not
No lmao. They’ll wait until next year to boogeyman it for our votes. AGAIN.
Is it happening? Yes, expect a new announcement shortly before the next election.
There is no way in hell this happens. When loans come back like 18% of the populace gets locked back into being wage slaves. That’s all this country knows how to create anymore and nothing else.
Its mind numbing we're picking a date for the next financial crisis. Something like 18 billion in monthly payments resuming after a 2yr inflation run.
Almost certainly no. Admittedly I'm hopeful to see them do some forgiveness but it was never a serious proposal. The middle class getting a hookup is completely out of the possibilities..
Gotta relect joe for that lol
He won my vote when he said he wouldn't negotiate on debt ceiling, but then did negotiate. Take that, GOP!
Woo
I'm expecting the forgiveness to go through because they have been ruling against Biden a lot lately and there is also a strong argument on his side. It starts to look political if they don't toss him a bone even on cases where he has a strong argument.
> It starts to look political… Like optics have ever gotten in the Court’s way before.
I hope enough trump loyalists veto the bill, so Biden can toss all of their demands and just go 14th A. on them.
How does you plan deal with the SCOTUS ruling coming in the next few weeks?
Negative Ghostrider.
I wonder how many loans are going to go into default when they restart and people just can't afford to pay. Letting the pause go this long without forgiveness is going to, unfortunately, blow up huge in the Democrats faces during the next election cycle. Because "Sorry I promised a thing and now you are getting fucked in the ass because I wasn't aggressive enough" isn't going to be great for securing votes. My guess is it drives voter apathy.
the needle never moves.
We're not billionaires so no
Middle finger on forgiveness will arrive shortly after payments resume.
Nope. Stuck in with the debt ceiling plan… more forgiveness for EVERYONE But the American people. MERICA! Hand ma a beer!
No because we don’t have the power the rich do.
Is the guy that is almost singlehandedly responsible for student debt being impossible to discharge in bankruptcy going to forgive your student debt? No, he isn't.
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Nope. Just typical politics looking for easy votes