What part do you disagree with?
These last two loan pauses have made me (someone who does not need a pause at all) a ton of money since I can just invest the payments that would normally go to loans.
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White House says it will extend student-loan pause again before Aug. 31 or finalize plan by then on canceling student debt
- Thread starter Ryuelli
- Start date
These last two loan pauses have made me (someone who does not need a pause at all) a ton of money since I can just invest the payments that would normally go to loans.
So, let's say the impossible happens and he decides to cancel "all student debt", and the courts say "Yeah ok that's fine" and it actually happens.
What all does that entail? He/They can only cancel student loans from government agencies, correct? So like if my student debt was "sold" to a private company or whatever I'm assuming this wouldn't really do anything with that? Just wondering, cause I honestly don't know lol
What all does that entail? He/They can only cancel student loans from government agencies, correct? So like if my student debt was "sold" to a private company or whatever I'm assuming this wouldn't really do anything with that? Just wondering, cause I honestly don't know lol
Even by American standards I can't imagine a world where WaPo is center left.
Nice if my wife's debt gets cancelled she can finally find a job she will enjoy and not one that qualifies for her debt to be cancelled in 10 years worth of payments.
The Executive may have the ability to cancel student debt. It's an open question. However, there's no question that the Executive can't make college free on their own. So Biden possibly only has the ability to do one of those things. Student loans should be cancelled even if college cannot be made free at this time.
Cancelling the debt isn't meant to improve their education. It's meant to improve their lives so they don't have massive debt hanging over their heads and eating at their income. Having parents who have more economic mobility means that they can create generational wealth so it will indeed help future generations.
If it was a federal student loan, it will be cancelled. It doesn't matter who the loan holder is.
Careful what you wish for, they'd seize your social security to pay for it.
Gotcha, well that's nice. Hah, sorry if it was a stupid question, all this stuff is confusing sometimes :)
I'm doubtful of a full cancellation, but I hope y'all get something. Even $10k would help so many people.
I really want reform more than forgiveness (ideally both), but I am likely biased as my partner and I no longer have any student loan debt.
I really want reform more than forgiveness (ideally both), but I am likely biased as my partner and I no longer have any student loan debt.
Why do you think that refinanced loans will be forgiven at the same rate as federally owned loans? This isn't the case from what I've read.
So if he can cancel student debt, why cannot he do any of those:
- pay new student loans directly when they are created from federal budget
- offer extensive stipendia covering *at least* all STEM studies
- forward cancel student loans
Considering most Americans have the attention span of a gold fish, it's really not. Cancelling the debt any point before Oct 1st would be pointless because it would be long forgotten by most.
I mean to say that federal loans will be cancelled. If it's privately refinanced, that's probably unlikely. I took the poster to mean that someone like Navient processes their loan so they were wondering if it would be cancelled.
Because he needs Congress to do those things.
The Federal budget isn't one big pot that Biden just has access to.
On what basis can he cancel existing loan but not the other two points?
There are legal arguments for him being able to cancel existing student loans. As I said, it's an open question. There's no question he can't cancel debt forward and make college free without Congress allowing him to.
Here's one most people talk about from Harvard.
There's also opposition to both free college and debt cancellation because there's a lot of investment money tied up in them.
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Yeah, I think that's what it is. My loans are predominately handled by Nelnet or whatever. I never refinanced anything, I think I was just using the wrong terminology above because I'm at about a 5 year old's knowledge about this kind of stuff. lol
No worries, friend!
Those are private servicers but, as long as you got federal loans, it would still be cancelled in the event of debt cancellation.
I do not see any argument in this document that would not be applicable to future debt. So if this argument holds, I would expect it also to allow forward-cancelling student loan debt i.e. directly cancelling the debt upon taking the loan, at least for as long as no other president changes this policy again.
Honestly totally fine with them using canceling as a midterm tool if it means we can get a 53+ majority in the Senate and not need Sinema or Machin.
Hell dangle legal weed too. I don't care if its blatant vote baiting. At least its playing more level with the GOP fucks.
Hell dangle legal weed too. I don't care if its blatant vote baiting. At least its playing more level with the GOP fucks.
That's what we all want, but there's no chance of that getting through our current Senate.
Whatever action the White House decides on will need to be airtight, because the Supreme Court is now packed with far-right partisans.
It's depressing as hell, but you're right.
You shouldn't expect that. The courts would definitely not allow cancelling debt forward, making college free for everyone, as it was clearly not the intention of Congress. There is a good argument to be made that cancelling existing debt was the intent of Congress as that is the entire point of the bills. Now, whether it can apply to everyone or not is the big question.
Is it depressing that I think October 1st might even be too early? lol
I'm so doubtful on full cancellation ever happening, like since when has this country done anything that would eliminate that much money coming in, etc. (googling says there's approx. $1.75 trillion total in student debt). But I think a compromise of say reducing rates to 0 -.5% and reducing amounts due by like 25% or something could happen maybe.
It won't be full cancellation. It'll be means tested to hell with arbitrary cutoffs, similar to the stimulus money.
Should the government do a one time erase of student debt I can't wait for all the fuck you got mine people to pop up. Thinking that because they were able to pay off their debt that the government should give them a check for 50k.
The Build Back Better policy had/has comprehensive education reform and massive free education plan. But 100% of republicans and 4% of Democrats killed it. With democrats likely to lose the Senate in the fall, education reform around price is effectively dead. With inflation at 8%, any chance for large scale forgiveness from the Senate before then is completely dead. The $50k forgiveness plan was booked at something like $3t or something, and with high inflation there isn't 40 votes in the Senate for any major spending program, let alone 51 or 60.
Executive action around limited forgiveness could still be possible. While the ideal option would be to pass Bidens education agenda as part of even a slimmed down BBB, an EO cancelling debt is one of the few things that might still be possible (although the jury is out on whether the president/edu secretary really has that power with EO).
Yes. I did the 'smart' thing by refinancing to pay it off more quickly. Now none of this pausing or forgiveness applies to me at all. Sucks.
Cancelling student loans in the face of insane inflation will probably just make non college whites angrier at the ballot box lol. This is a good thing that should happen but anyone saying it's going to have any bearing on midterms is inhaling their own fumes
Not everyone has a lucrative medical or law career with student loans. There's teachers or professors up to 150k in student loan debt that don't realistically have any way of paying it off ever. Medical staff making 60k a year and 90k in student loans. I'm a loan officer and see it literally every day. These are people that struggle with the daily cost of rising rent and are already stretched thin despite student loans being on deferment.
The vast vast majority of non college whites vote Republican regardless though...
I think you're correct. He could do that, the onus would then be on congress to change the student loan system or a new president to reverse it.
I have more in private loans than government loans, but I'd still gladly take a cancellation of the latter.
I agree. It shouldn't be difficult for Biden to do, given that he can easily do so with an EO & the stroke of a pen.
Restarting loan payments 2 months before the midterms would be the most Democrat thing in the history of the Democratic party.
Seriously. A lot of good can be done bg reducing interest rates and opening up the option to discharge debt through bankruptcy.
It makes zero sense why getting an educational loan from the government costs more in interest than financing a car from a bank.
Yep, 0-1% interest instead of 6-7% isn't a cure-all by any means, but it saves a ton of money in terms of principal versus interest payments.
I could see that happening as a 'compromise' (as it doesn't promote inflation), plus maaaaaaaaaybe the 10k Biden is 'on record' for (despite how wishy-washy he's been on it since), up until 2024, at least - I rather doubt 50k/full forgiveness is happening in the current environment, for both inflationary and/or not pissing off the boomers.
While I want full cancellation, and would be happy for any amount (Be it 10 grand, 50 grand, whatever), at this point I'm hoping that other relief measures are not forgotten about. 25 years for IBR is fucking awful (20 for those "lucky" enough to have borrowed after a certain date) And my understanding is that none of the forgiveness programs work the way they are supposed to with people finding it impossible to actually close out their account after the times up. If you do, you're supposed to owe taxes on any amount cancelled. There were talks of lowering the years you would be responsible for the debt, as well as lowering the amount on your discretionary income to like 5 percent and getting rid of the tax obligation. Hoping for some movement on this stuff.
Or make it so that I can just file for bankruptcy.
Or make it so that I can just file for bankruptcy.
I'm in the same boat as you and don't really understand it all either. All my loans I got way back when were applied for through FAFSA and are Stafford loans that I have always been led to believe are federal loans, but despite that I've not qualified for any of this relief that's been going on for 2 years because my account started with a J and not and E, it says, and could only apply for the standard forebearance that's always existed and would continue to compound interest. I also have Nelnet as my servicer. I find it odd there's been next to no info over why I don't get relief but others do and I've been trying to find out off and on since it began.