discussion Student Debt - Update: GOP lawsuit attempts, Biden allows opt-out; FFEL restrictions

[Timber]

On 8/25/2022 at 10:31 AM, Rotunda said:

While I obviously wish he had cut more, it is nice to see regular people tweeting/posting about getting relief and being able to buy houses or be debt free more.

 

Also, as someone who would have preferred a larger debt cancellation, the argument that the blowback would be the same if he cut $10K, 50K, or everything is disingenuous. The right wing narrative/spin would be the same, but the public support would be different. Even so, part of being a good politician is knowing how to control the narrative - so if he truly wanted to fight for this, he would have.

 

 

This is actually great for the economy. Let’s keep it up.

[rihannabiggestfan]

56 minutes ago, Timber said:

This is actually great for the economy. Let’s keep it up.

 

 

[Delirious]

12 hours ago, rivers said:

I requested a refund on payments I made during Covid so I can qualify for forgiveness. I really had no faith he’d actually do it so that’s why I paid to take advantage of no interest  

[Chemist]

Geez

 

[publikcitizen]

I wonder when the student loans will automatically be wiped out if we don't have to do the application.

[Communion]

10 hours ago, publikcitizen said:

I wonder when the student loans will automatically be wiped out if we don't have to do the application.

I think the application is required?

[Bang Up]

On 8/29/2022 at 8:38 AM, Communion said:

I think the application is required?

If you're not on an income-based payment plan, yes, the application is required. Those who are on an income-based payment plan, no, you will have the money wiped automatically. This is because the gov't already has your income on file, which is the main thing that tells the gov't if someone is eligible or not.

 

What a brilliant move it was using the HEROES act from the early 2000s to do this. The amount of research it must've took to find a way to do this so that it couldn't be stopped is impressive. This is why having a competent administration is important! People wanted Biden to wave his hand and do this via EO, but that would've made this very, very easy to strike down via a court order.

 

I get emotional thinking about this. I have a private loan so I won't get forgiveness, and I'm in a position that affords me the ability to pay it back, but I'm so happy for the millions upon millions who will no longer have to struggle with their debt. Millions of people will have extra money each month to improve their quality of life, invest in their families, and buy the things they want. This will inject tons of cash straight into the economy.  

 

The last three months have been win after win for this admin.

Edited August 30, 2022 by Bang Up

[GhostBox]

5 minutes ago, Bang Up said:

If you're not on an income-based payment plan, yes, the application is required. Those who are on an income-based payment plan, no, you will have the money wiped automatically. This is because the gov't already has your income on file, which is the main thing that tells the gov't if someone is eligible or not.

 

What a brilliant move it was using the HEROES act from the early 2000s to do this. The amount of research it must've took to find a way to do this so that it couldn't be stopped is impressive. This is why having a competent administration is important! People wanted Biden to wave his hand and do this via EO, but that would've made this very, very easy to strike down via a court order.

 

I get emotional thinking about this. I have a private loan so I won't get forgiveness, and I'm in a position that affords be the ability to pay it back, but I'm so happy for the millions upon millions who will no longer have to struggle with their debt. Millions of people will have extra money each month to improve their quality of life, invest in their families, and buy the things they want. This will inject tons of cash straight into the economy.  

 

The last three months have been win after win for this admin.

??????

[Bang Up]

 

On 8/25/2022 at 11:18 AM, Dephira said:

Amazing to read all the stories of people who will now be debt free, or have received a huge relief from their payments  Thanks Biden. Now do something about the ballooning cost of university tuition (which has grown far faster than inflation), otherwise we will be in the same place again in 10 years again. 

 

Congress would have to pass a bill restructuring how student debt and loans work, and we know Republicans won't vote for that. As of right now, this is all we have. It's a bandaid on a gunshot wound, but it's a bandaid helping millions of people.

[Pheromosa]

its funny how nothing will change for me monthly since my payments have been $0 since 2017

good for my debt to income ratio though

[Communion]

1 hour ago, Bang Up said:

If you're not on an income-based payment plan, yes, the application is required. Those who are on an income-based payment plan, no, you will have the money wiped automatically. This is because the gov't already has your income on file, which is the main thing that tells the gov't if someone is eligible or not.

 

What a brilliant move it was using the HEROES act from the early 2000s to do this. The amount of research it must've took to find a way to do this so that it couldn't be stopped is impressive. This is why having a competent administration is important! People wanted Biden to wave his hand and do this via EO, but that would've made this very, very easy to strike down via a court order.

 

This is fundamentally misunderstanding what an executive order is. The people calling him to use an EO were telling him to issue an order that instructed the Department of Education to follow either the Higher Education Act of 1965 *or* the Heroes Act of 2003 given their debt wiping capabilities. The former being preferable bexause the language is more wide-swerping. 

 

I don't get the incentive to try and dismiss the progressives and activists who made it possible for this to happen. 

 

It also tries to obscure that this power is literally in the hands of the executive. The Department of Education is part of the executive branch of government. It is using irs authority to interpret a past law in the same way people have been demanding Biden do. 

 

If you believe what Biden did was different from what progressives demanded, can you explain to us all the material differences between the 1965 bill and the 2003 bill?

[rihannabiggestfan]

The fact that it needs an application AND the application wasn't immediately ready  what a means-tested mess

 

and that conservative Gaga stan serving 

Edited August 30, 2022 by rihannabiggestfan

[slik]

I wonder if I can get a refund for what I paid during the pandemic to Navient and then let Biden forgive 10k of that

[slik]

Annnnnd just like that I see tweets of people saying Navient is telling them they refuse to refund them. Considering Navient refused to pause my loans during the pandemic I shouldn't be surprised.

 

Shitty garbage company.

[slik]

sorry for triple post but this is the type of stuff @Communionis talking about when they post more still needs to be done.

 

I paid my student loans, which were federal, to Sallie Mae for YEARS. Then one day out of the blue I got an email saying Navient now owned by loans and I would pay them going forward. It was never made clear to me as a loan borrower that Navient purchasing my loans gave them the right to re-classify my loans as private loans. THAT should not be legal. Especially since I made my payments every single month and on-time. I continued to pay my loans during the pandemic because when I would call Navient a representative would tell me I didn't qualify for the Cares act but would never give me more explanation when I asked. Now it all makes sense. Navient bought and RE-CLASSIFIED people's federal loans. Why is that legal? There are MILLIONS of borrowers who won't benefit from Biden's plan because of it. I am glad I paid my loans off in December of last year but it really sucks I can't get the money back I paid.

[Purr]

2 hours ago, slik said:

sorry for triple post but this is the type of stuff @Communionis talking about when they post more still needs to be done.

 

I paid my student loans, which were federal, to Sallie Mae for YEARS. Then one day out of the blue I got an email saying Navient now owned by loans and I would pay them going forward. It was never made clear to me as a loan borrower that Navient purchasing my loans gave them the right to re-classify my loans as private loans. THAT should not be legal. Especially since I made my payments every single month and on-time. I continued to pay my loans during the pandemic because when I would call Navient a representative would tell me I didn't qualify for the Cares act but would never give me more explanation when I asked. Now it all makes sense. Navient bought and RE-CLASSIFIED people's federal loans. Why is that legal? There are MILLIONS of borrowers who won't benefit from Biden's plan because of it. I am glad I paid my loans off in December of last year but it really sucks I can't get the money back I paid.

When you log on studentaid.gov, does it say your loans are owned by the Department of Education? The servicer should not matter as long as they are owned by the DOE. I feel like people who cannot get refunds never had federal loans to begin with...

[spree]

3 hours ago, slik said:

sorry for triple post but this is the type of stuff @Communionis talking about when they post more still needs to be done.

 

I paid my student loans, which were federal, to Sallie Mae for YEARS. Then one day out of the blue I got an email saying Navient now owned by loans and I would pay them going forward. It was never made clear to me as a loan borrower that Navient purchasing my loans gave them the right to re-classify my loans as private loans. THAT should not be legal. Especially since I made my payments every single month and on-time. I continued to pay my loans during the pandemic because when I would call Navient a representative would tell me I didn't qualify for the Cares act but would never give me more explanation when I asked. Now it all makes sense. Navient bought and RE-CLASSIFIED people's federal loans. Why is that legal? There are MILLIONS of borrowers who won't benefit from Biden's plan because of it. I am glad I paid my loans off in December of last year but it really sucks I can't get the money back I paid.

re-classified or consolidated?  I'm in exactly the same boat as you, except I got about 5 years left to go on my loans.  Had Sallie Mae, then Navient out of the blue took over.  Yup, I remember.  But I think when you consolidate like 10 loans into one payment it makes them private?  I don't know.  I try not to worry about it.

[slik]

1 hour ago, Purr said:

When you log on studentaid.gov, does it say your loans are owned by the Department of Education? The servicer should not matter as long as they are owned by the DOE. I feel like people who cannot get refunds never had federal loans to begin with...

I haven't logged onto that site before. My loans were originally FFELP loans, but the government eliminated those after 2010. Then the company the government created to handle those specific federal loans they decided to privatize (Thanks Republicans). Then that company decided all my loans should be consolidated, which I didn't really understand then because they didn't really explain it to me or apparently millions of other people.

 

 

 

[slik]

I guess it's all moot now, it's just annoying. I am very happy for everyone who will get debt cleared away.

[Purr]

7 minutes ago, slik said:

I haven't logged onto that site before. My loans were originally FFELP loans, but the government eliminated those after 2010. Then the company the government created to handle those specific federal loans they decided to privatize (Thanks Republicans). Then that company decided all my loans should be consolidated, which I didn't really understand then because they didn't really explain it to me or apparently millions of other people.

 

 

 

The FFEL loans will probably be looped in later on. I follow this Reddit thread for information: https://www.reddit.com/r/StudentLoans/comments/wyppu8/new_biden_forgiveness_megathread/?sort=new. If you have any questions, you should try reaching out to someone there. Hope that helps!

[slik]

Appreciated @Purr -- Thank You!

 

 

 

Edited August 31, 2022 by slik

[spree]

23 minutes ago, Purr said:

The FFEL loans will probably be looped in later on. I follow this Reddit thread for information: https://www.reddit.com/r/StudentLoans/comments/wyppu8/new_biden_forgiveness_megathread/?sort=new. If you have any questions, you should try reaching out to someone there. Hope that helps!

hmm..

 

I have 3 loans on Navient.  2 are FFELP and 1 is Private.

[Purr]

26 minutes ago, slik said:

Appreciated @Purr -- Thank You!

 

 

 

Np! Hopefully you can get a refund!

 

4 minutes ago, spree said:

hmm..

 

I have 3 loans on Navient.  2 are FFELP and 1 is Private.

You'll most likely qualify for forgiveness. The loan expert is quite confident about it.

[Bang Up]

17 hours ago, Communion said:

This is fundamentally misunderstanding what an executive order is. The people calling him to use an EO were telling him to issue an order that instructed the Department of Education to follow either the Higher Education Act of 1965 *or* the Heroes Act of 2003 given their debt wiping capabilities. The former being preferable bexause the language is more wide-swerping. 

 

I don't get the incentive to try and dismiss the progressives and activists who made it possible for this to happen. 

 

It also tries to obscure that this power is literally in the hands of the executive. The Department of Education is part of the executive branch of government. It is using irs authority to interpret a past law in the same way people have been demanding Biden do. 

 

If you believe what Biden did was different from what progressives demanded, can you explain to us all the material differences between the 1965 bill and the 2003 bill?

i... never even said anything about progressives lmao. the people like bernie and warren deserve just as much credit for fighting for this for years; they're the ones in biden's ear telling him how to do things and he's actually listening. that was my point. i have no problem with progressive politicians (warren was my first choice, then bernie, then biden), i just have a problem with progressives online who whine about everything. "why is there an application that's needed". because the gov't doesn't have everyone's current income on file. if you are enrolled in a payment plan based on your income, you don't need to fill out an application because the gov't already has that information. the entire point of this policy is to help the people who need it the most. the application process is necessary so people making over $125k (or whatever the threshold is) don't get the help others need more. that is a perfectly reasonable thing and the progressives whining about an application are the ones who can't accept biden did something right. not to mention the tens of billions of dollars biden has already wiped (automatically) for people.

 

13 hours ago, slik said:

sorry for triple post but this is the type of stuff @Communionis talking about when they post more still needs to be done.

 

I paid my student loans, which were federal, to Sallie Mae for YEARS. Then one day out of the blue I got an email saying Navient now owned by loans and I would pay them going forward. It was never made clear to me as a loan borrower that Navient purchasing my loans gave them the right to re-classify my loans as private loans. THAT should not be legal. Especially since I made my payments every single month and on-time. I continued to pay my loans during the pandemic because when I would call Navient a representative would tell me I didn't qualify for the Cares act but would never give me more explanation when I asked. Now it all makes sense. Navient bought and RE-CLASSIFIED people's federal loans. Why is that legal? There are MILLIONS of borrowers who won't benefit from Biden's plan because of it. I am glad I paid my loans off in December of last year but it really sucks I can't get the money back I paid.

it shouldn't be legal, but the world of student loans is the wild, wild west with virtually no oversight.

hopefully enough people catch onto this and a class-action lawsuit is filed? if many, many people are screwed out of loan relief because of actions like this, those companies deserve to be taken to task.

[Communion]

1 hour ago, Bang Up said:

i... never even said anything about progressives lmao.

The people calling on him to use a formal EO were progressives. You're trying to disparage the calls for him to use an EO to get it done while refusing to explain how what he did is materially different from using an EO. 

 

No one is talking about application??? lol though there is the truth that a universal forgiveness would have made the process easier and ensured no one got lost in the cracks. 

 

Claiming the forgiveness is focused on the most poor is dishonest when Biden's amount chosen leaves many of the most poor still in debt. The income cap isn't to focus on the most poor.