Student Debt "Cancellation"

[oyarde]

Looks like about 13 states will tax the 25K like income but from looking at it I'd guess the vast majority of deadbeats and welchers will not come from those states

 

[CaptUSA]

Above and beyond the student debt shifting, there's an even more troubling piece of that announcement that many people are overlooking.

Part 3. Make the student loan system more manageable for current and future borrowers
Income-based repayment plans have long existed within the U.S. Department of Education. However, the Biden-Harris Administration is proposing a rule to create a new income-driven repayment plan that will substantially reduce future monthly payments for lower- and middle-income borrowers.

The rule would:

Require borrowers to pay no more than 5% of their discretionary income monthly on undergraduate loans. This is down from the 10% available under the most recent income-driven repayment plan.
Raise the amount of income that is considered non-discretionary income and therefore is protected from repayment, guaranteeing that no borrower earning under 225% of the federal poverty level—about the annual equivalent of a $15 minimum wage for a single borrower—will have to make a monthly payment.
Forgive loan balances after 10 years of payments, instead of 20 years, for borrowers with loan balances of $12,000 or less.
Cover the borrower's unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower's loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low.

https://studentaid.gov/debt-relief-announcement/

So just think about that for a second...

Borrowers will only have to pay 5% of their income under this new income-driven repayment plan (IDR). (The current IDR is being used more and more often already.) Then, after 10 years of payments, your loan is done if your balance is under $12,000.

So what does that incentivize?? Borrow as much as humanly possible! You'll never have to pay it back and you'll only have to suffer with a 5% payment for 10 years. This is a HUGE gift to the "higher" education industrial complex. And universities can raise their tuitions forever!

 

[GlennwaldSnowdenAssanged]

Above and beyond the student debt shifting, there's an even more troubling piece of that announcement that many people are overlooking.


https://studentaid.gov/debt-relief-announcement/

So just think about that for a second...

Borrowers will only have to pay 5% of their income under this new income-driven repayment plan (IDR). (The current IDR is being used more and more often already.) Then, after 10 years of payments, your loan is done if your balance is under $12,000.

So what does that incentivize?? Borrow as much as humanly possible! You'll never have to pay it back and you'll only have to suffer with a 5% payment for 10 years. This is a HUGE gift to the "higher" education industrial complex. And universities can raise their tuitions forever!

That doesn't seem right. People could easily borrow over $250,000 to go to school. Making minimum payments for 10 years won't have the balance go away.

The elephant in the room is many degrees that children out of High School seek are worthless. The policy mentioned seems to promote worthless degrees. People go to school accumulate a ton of debt and never get a job in their field. Then they work menial jobs and never repay the debt. Loaning to kids to go to college is just plain bad financial strategy unless you are a lender that has the US government backing the loan. A real borrower should be required to show they are very smart, High SAT scores, and are entering into a field that needs talent. It seems ludicrous to go to school and study and test... for 4 or more years and leave with a degree where there is no demand. Why are so many people illiterate with math? Need to get rid of public education from K-8 all the way to K-16. A ghetto kid is not going to be any smarter after 12 years of public school and the affluent child won't be any dumber. Get Government out of the Education business. They are terrible at everything they do.

 

[CaptUSA]

That doesn't seem right. People could easily borrow over $250,000 to go to school. Making minimum payments for 10 years won't have the balance go away.

Lol - it ISN'T right! And yeah, if you're balance is over $12K after 10 years, you'll just continue to pay the 5% in perpetuity. Consider it a 5% tax for a gold-plated college experience. It certainly won't be for an education! And if you keep your income below the 225% of poverty-level threshold, you won't even have to pay the 5%. Just insane!

 

[GlennwaldSnowdenAssanged]

Most kids look at college as a time to have fun and be away from home. There should be an alternative with a totally structure free campus that supports fun, getting away from home, and teaches life skills.

 

[ClaytonB]

 

[Voluntarist]

Here's an exercise for the reader: Who, if anyone, would federal courts recognize as having "standing" to sue over this issue - and for what kind of "relief"? (At least with the vaccine mandates, those directly subject to the mandates were easily recognized as having standing, and relief consisted of their not having to take the jab.)

Some more who may have standing (from The Atlantic: Biden’s Student-Debt Rescue Plan Is a Legal Mess)

Legal challenges are inevitable. Private banks administer many of these loans, and they will incur millions in losses when the debts are canceled, meaning that those banks would have standing in federal courts. State programs may also be concretely affected, and such states also are likely to sue. These plaintiffs will probably prevail unless the Department of Education narrows the plan’s scope or relies on a different statute when it finalizes the policy.

 

[Occam's Banana]

Federal appeals court temporarily halts Biden’s student debt relief program
The Biden administration had previously said it could begin canceling student loans as early as this Sunday.
https://www.politico.com/news/2022/...s-bidens-student-debt-relief-program-00063021
Michael Stratford (21 October 2022)

A federal appeals court has temporarily stopped the Biden administration from moving ahead with its plan to forgive hundreds of billions of dollars of federal student loan debt.

The 8th Circuit Court of Appeals on Friday issued an order that prohibits the Biden administration from “discharging any student loan debt” under its sweeping relief program until the court rules on an emergency request by Republican-led states to block the policy.

The court said it would hear the GOP states’ legal challenge on an expedited basis, with briefs from each side due on Monday and Tuesday.

The temporary stay is a setback for the Biden administration, which had previously said in court filings it could begin discharging student loans as early as this Sunday. The White House on Friday urged borrowers to apply, saying preparation would “continue to move full speed ahead.”

“Tonight’s temporary order does not prevent borrowers from applying for student debt relief at studentaid.gov – and we encourage eligible borrowers to join the nearly 22 million Americans whose information the Department of Education already has,” White House spokesperson Karine Jean-Pierre said in a statement Friday night. “It also does not prevent us from reviewing these applications and preparing them for transmission to loan servicers.”

Biden earlier on Friday announced that nearly 22 million borrowers had submitted applications for the debt relief program. That is roughly half of the more than 40 million Americans who the Education Department expects will be eligible for some amount of loan forgiveness.

The program, first announced in August, offers up to $20,000 of debt relief for borrowers earning below $125,000 individually or $250,000 as a couple.

A slew of GOP officials and conservative groups have fought to stop Biden’s debt relief plan in court, arguing that it’s an illegal abuse of authority and unconstitutionally circumvents Congress.

The Biden administration argues it has the power to discharge large swaths of federal student loans under a 2003 law, known as the HEROES Act, that gives the Education Department special powers during national emergencies, such as the Covid-19 pandemic.

The administration says that the debt relief is needed to mitigate the risk that many federal student loan borrowers may fall behind on their monthly payments after the freeze on repayment ends in January.

The lawsuit by the six GOP states — Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina — is now before the 8th Circuit after it was rejected by a lower court judge on Thursday.

U.S. District Judge Henry Edward Autrey, an appointee of George W. Bush, ruled that the states did not articulate the type of harm that’s needed to have their legal challenge heard in federal court.

The states argue that the debt relief program causes them economic injury in the form of lost tax revenue and other losses stemming from federal student loans that state-related entities manage, own, or invest in. But Autrey ruled that most of those alleged harms were too speculative.

“While Plaintiffs present important and significant challenges to the debt relief plan, the current Plaintiffs are unable to proceed to the resolution of these challenges,” Autrey wrote in a 19-page decision. He emphasized that his decision was focused on the states’ lack of standing and was not a comment on the legality of the debt relief plan.

 

[Anti Globalist]

Remember when Pelosi said in April of last year or this year that the president does not have the power to cancel student loan debt?

 

[Occam's Banana]

https://twitter.com/jacobkschneider/status/1584346085765525504

 

[Occam's Banana]

U.S. judge declares Biden's student debt relief plan unlawful
https://www.reuters.com/legal/us-ju...debt-relief-plan-unconstitutional-2022-11-11/
Nate Raymond (10 November 2022)

A federal judge in Texas on Thursday ruled that President Joe Biden's plan to cancel hundreds of billions of dollars in student loan debt was unlawful and must be vacated, delivering a victory to conservative opponents of the program.

U.S. District Judge Mark Pittman, an appointee of former Republican President Donald Trump in Fort Worth, ruled in a lawsuit backed by the Job Creators Network Foundation on behalf of two borrowers.

The debt relief plan had already been temporarily blocked by the St. Louis-based 8th U.S. Circuit Court of Appeals while it considers a request by six Republican-led states to enjoin it while they appealed the dismissal of their own lawsuit.

Biden's plan has been the subject of several lawsuits by conservative state attorneys general and legal groups, though plaintiffs before Thursday had struggled to convince courts they were harmed by it in such a way that they have standing to sue.

Pittman in a 26-page ruling wrote that the HEROES Act - a law that provides loan assistance to military personnel and that was relied upon by the Biden administration to enact the relief plan - did not authorize the $400 billion student loan forgiveness program.

"The Program is thus an unconstitutional exercise of Congress's legislative power and must be vacated," Pittman wrote.

The White House and representatives for the plaintiffs did not respond immediately to requests for comment.

The non-partisan Congressional Budget Office in September calculated the debt forgiveness would eliminate about $430 billion of the $1.6 trillion in outstanding student debt and that over 40 million people were eligible to benefit.

The plan, announced in August, calls for forgiving up to $10,000 in student loan debt for borrowers making less than $125,000 per year, or $250,000 for married couples. Borrowers who received Pell Grants to benefit lower-income college students will have up to $20,000 of their debt canceled.

 

[jct74]

saw this on Elon's twitter feed

 

[Anti Globalist]

Joe Biden will revisit this issue two years from now and convince a lot of young people into voting for him once again.

 

[devil21]

Ed Dept says repayment restarts in October, interest restarts Sept 1. SCOTUS still sitting on how much, if any, forgiveness to be approved.

https://www.cnbc.com/2023/06/20/its-official-student-loan-payments-will-restart-in-october.html
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saw this on Elon's twitter feed

Given the timing of this with CBDC rollout also slated for October (according to LaGarde), I think CBDC adoption will somehow be the carrot dangled in front of the youngens loaded up with student debt. They're already having a hard time making ends meet and the extra $400 per month expense, which they can't generally pay without sacrificing their "discretionary spending" (good luck with that), will have them acting very much like the girl in the "satire" Bee video.

 

[Voluntarist]

saw this on Elon's twitter feed

Gender Studies Grad Demands Blue-Collar Worker Pay Off Her Loans

I think she's knocking on the wrong door, given that:

TPC estimates that 67 percent of taxes collected for 2022 came from those in the top quintile, or those earning an income above $189,200 annually. Within this group, the top one percent of income earners — those earning more than $982,600 per year — will contribute 26 percent of all federal revenues collected.

For accuracy, she ought to be knocking on the doors of doctors, lawyers and corporate executives who live in gated communities and drive Beemers and Mercedes instead of Honda Fits. It'd be the same message, but wouldn't come across as quite so satirical to the general public (who would just as soon burn that top quintile at the stake).

 

[oyarde]

Slackers need to get busy and start paying . Bidens need to money to launder in ukraine

 

[Anti Federalist]

Lol - it ISN'T right! And yeah, if you're balance is over $12K after 10 years, you'll just continue to pay the 5% in perpetuity. Consider it a 5% tax for a gold-plated college experience. It certainly won't be for an education! And if you keep your income below the 225% of poverty-level threshold, you won't even have to pay the 5%. Just insane!

Not so insane if the goal is to get as many people as possible into the Marxist indoctrination camps.

 

[devil21]

SCOTUS noped out and ruled it unconstitutional (correctly, imo). Gonna be lots of 20-somethings with gender studies degrees and 6 figure loan balances shitting bricks today. The age of the sugar daddy with a harem of 20-something ladies quickly approaches.....

https://www.cnbc.com/2023/06/30/supreme-court-biden-student-loan-forgiveness-plan.html


I will say that for all the poo I hurl at Trump, "he" (his advisors) did at least nominate justices who strictly follow applicable Constitutional law in their rulings.

 

[Occam's Banana]

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[acptulsa]