news Biden to make second attempt at large-scale student loan forgiveness

[VOSS]

The Biden administration is poised to issue a proposal aimed at reducing or eliminating student loan balances for millions of borrowers, according to people familiar with the matter, marking President Biden's second attempt at large-scale loan forgiveness. 
 

The regulations, which are set to be issued as soon as next week, come after the Supreme Court last year overturned the administration's first debt cancellation plan, which would have wiped away up to $20,000 in student debt for borrowers making less than $125,000 a year. 

 

Biden is planning to outline the broad strokes of the new proposal during a speech on Monday in Madison, Wis., where he is expected to tout his administration's wide-ranging efforts to chip away at the student debt burden facing more than 40 million Americans, the people said. A White House spokesman declined to comment.

 

Administration officials expect that the final rule will be challenged in court, but they think they are on solid legal footing. The new approach, they argue, is more tailored because it outlines specific conditions for debt cancellation, a contrast with the more sweeping plan that was overturned by the Supreme Court. 

 

The administration used the Heroes Act to underpin Biden's first loan-forgiveness program. But the Supreme Court ruled that the administration had overstepped its authority by using the law, which allows the education secretary to modify student aid programs to respond to emergencies, to forgive loans for tens of millions of Americans. 
 

Source

[ZeroSuitBritney]

Genocide enablers can do some good Good job Genocide Joe! 

[Devin]

my loans hasnt been forgiven. 

[perfect blue]

Dangled the same ******* carrot in front of us last time and it flopped by his own choice. Not falling for this again, demon.

[EnigmaticAndroid]

Already paid mine at gunpoint f*ck 

[suburbannature]

Not him make this last ditch effort before November  

 

I understand it's not his fault it failed before, but this feels like election PR

[Archetype]

There's no point in him trying to do this unless it's not going to get blocked again by the SC.  Otherwise this is just a sad attempt at PR and damage control.

[byzantium]

It's really a shame how much his desire to murder children has kept him from diverting more attention to this important issue.  

[dawnettakins]

I would like to see it! Only because I would have been qualified to have my loans forgiven under his last proposal before the courts and SCOTUS had their way.

 

We'll see how this one plays out I guess if he is going to try for it. It would help millions out if it happened, and that's not nothing.

[shyboi]

fool me once, fool me twice 

[GhostBox]

At least they are trying👏🏼

 

though it hasn't been enough it's great under this admin we have seen the most student  loans forgiven than any other president. 

[Cheers]

Well… at least that's a plus over Trump

[Redstreak]

This has genuinely been one of the better aspects of his admin, people don't want to give him the credit because it wasn't one big news story but he's actually done a lot of work chipping away at student loans through many avenues, hopefully this allows the actually good progress we've made in this issue to go even further. Preferably though we need to be working on free college tuition

Edited April 5 by Redstreak

[beautiful player]

Well done 

[Sergi91]

Republicans will block this and certain people will still blame Biden 

[Communion]

I predicted that much of these would actually just be reiterating of practices that took effect in the Department of Education in 2023 and...well...

 

 

 

 

The interest forgiveness is very good (!) depending on how it plays out, but for those less interested in cheerleading for politicians and more about how this impacts you -

 

- Forgiveness of up to $20,000 on accrued and capitalized interest for all debtors regardless of income - This is very good and the only point that would seemingly need clarity is the aspect of interest rates on new loans (the ethical implications here is that no student loan should procur interest if we understand interest to be wrong and worthy of being wiped out) and the more into the weeds aspect of payments made towards interest. Whether historical or current. Like I look at my payment history on my SAVE plan and literally all of my last three payments were applied to interest. Would those payments retroactively apply to the balance since they were originally applied to interest the federal government acknowledges now should not exist? If this doesn't go into effect until 2025, how many more payments on interest have to be made that amount to throwing money in a hole?

 

- Automatic forgiveness for those who have been eligible for programs like PSLF but were not formally enrolled - Good, but this was largely the same policy that went into effect in 2023. Any figures they release are just administrative work they have been working on, especially since it seems now the tracking of such programs will be done by the Dept of Ed directly and loan services like MOHELA lost those contracts. 

 

- Forgiveness for those who have been in a repayment plan for 20 years - This is literally already the currently existing policy. Again, if the implications here is the automatic forgiveness of those who qualify without need to apply, this is good but largely what was announced in 2023. 

 

- Forgiveness for those who had attended "schools of low or questionable value" - Again, this is already federal policy. There is no info provided on what change is occurring  If a school you attended essentially loses its federal accreditation, you are entitled to have any remaining debt from said school wiped out. 

 

- Forgiveness for those who experienced financial hardship - There is literally no other information on this and what this might even mean. 

[GhostBox]

That sounds great to me 👏🏼 again way better progress on this issue than would happen under a trump admin 

[Communion]

42 minutes ago, GhostBox said:

That sounds great to me

And how much student debt do you have?