Latest White House plan would forgive $10,000 in student debt per borrower

[GrapeApes]

White House officials are currently planning to cancel $10,000 in student debt per borrower, after months of internal deliberations over how to structure loan forgiveness for tens of millions of Americans, three people with knowledge of the matter said.

President Biden had hoped to make the announcement as soon as this weekend at the University of Delaware commencement, the people said, but that timing has changed after the massacre Tuesday in Texas.

The White House's latest plans called for limiting debt forgiveness to Americans who earned less than $150,000 in the previous year, or less than $300,000 for married couples filing jointly, two of the people said. It was unclear whether the administration will simultaneously require interest and payments to resume at the end of August, when the current pause is scheduled to lapse.

The people, who spoke on the condition of anonymity because they were not authorized to discuss the deliberations, cautioned that some details of these plans could change before the White House makes the decision official.

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The White House said no final determination has been made about the matter. Biden said he would come to a decision on student debt in the "next couple of weeks" on April 28, nearly a month ago. "No decisions have been made yet," Vedant Petal, a White House spokesman, said in a statement Thursday.

Wiping out $10,000 of debt per borrower could cost roughly $230 billion, according to estimates by the Committee for a Responsible Federal Budget, a nonpartisan think tank. However, restarting payments for borrowers, which have been on hold since March 2020, would bring additional money into federal coffers. The think tank said in March that pausing payments had cost the federal government $100 billion and would run around $50 billion per year to maintain. The Washington Post had previously reported that the administration was considering making only undergraduate debt eligible for forgiveness.

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https://www.washingtonpost.com/us-policy/2022/05/27/biden-student-debt-borrower/

 

[horsebite]

Pathetic.

 

[Culex]

Why even bother with the "plan"?

Just do it. You have the power.

What a waste of reading!

 

[Powdered Egg]

"African Americans have always had my back and I will have yours!"

*fails to close racial wealth gap*

 

[Lys Skygge]

I won't even notice the effect of this.

 

[Witness]

I'll take it, but it was the bare minimum we were expecting and for people with loans of like $50k+ we won't really notice it.

 

[Jarmel]

All those people petitioning for him to do more and he did the bare minimum. Welp.

 

[Kyrios]

Hmm, this reminds me, I did get a voicemail from AidVantage (the company that Naviant conveniently sold my loans off to right before the lawsuit came out). But they said they were AidVantage but still came up as under Naviant on caller ID...

Either way, $10,000 would be barely noticeable to me, I'll still be about 10+ years away from getting rid of this shit.

 

[Soi-Fong]

I'll definitely take this. I have less than $10k left.

The $8k I have left over can go towards other investments instead.

 

[Indy in the Fridge]

10K is what could have been done via EO, correct? Or at least that's what we've been told.

This seems like such a paltry amount and I despise how the article tries to appeal to sympathy about the federal government losing billions on this. Like I fucking care. I'm tired of carrying nearly 50K in perpetuity.

 

[Intraxidance]

Considering I expected him to do nothing, this would actually be welcome news.

 

[Samaritan]

It's like Democrats don't even want to try to stay in power, this is just pathetic.

 

[Jarmel]

10K is what could have been done via EO, correct? Or at least that's what we've been told.

This seems like such a paltry amount and I despise how the article tries to appeal to sympathy about the federal government losing billions on this. Like I fucking care. I'm tired of carrying nearly 50K in perpetuity.

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Either none can be cancelled via EO or any amount can be cancelled via EO. There's zero reason to cap it at 10k outside of political reasons.

 

[Travo]

Fuck. Dems deserve to get voted out. Bare fucking minimum.

 

[Soi-Fong]

Fuck. Dems deserve to get boted out. Bare fucking minimum.

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You think you'll get anything under Republicans? Good luck..

 

[Sirhc]

I know alot of people are going to complain that it's not entire debts wiped out, but 10k per student is still a huge boost for millions of people struggling.

Don't let perfect be the enemy of good.

 

[RailWays]

I'll take it, but I'm curious. Would this require congressional approval? Because if not, they might as well go for more than 10k.

Either none can be cancelled via EO or any amount can be cancelled via EO. There's zero reason to cap it at 10k outside of political reasons.

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Exactly

 

[PlanetSmasher]

I mean I guess I'll take $10,000 in forgiveness. I dunno how much of my loans I still have left. It's something, even if total forgiveness for everyone should really be the goal here.

 

[HStallion]

Fuck. Dems deserve to get boted out. Bare fucking minimum.

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Sadly the alternative will probably start putting people in debtors prisons with the trajectory they're going.

 

[Indy in the Fridge]

Either none can be cancelled via EO or any amount can be cancelled via EO. There's zero reason to cap it at 10k outside of political reasons.

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Thank you for clarifying. I had thought beforehand that anything above 10K would have to pass through Congress. But now I'm starting to think that may be bullshit.

 

[less]

It's like Democrats don't even want to try to stay in power, this is just pathetic.

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Comments like this are insanity and perpetuate a massive delusion. Student debt forgiven (especially the larger you go) is not going to be popular.

 

[GYODX]

Great news

 

[geardo]

Knew this would happen when they were talking about how he was "agonizing" over this. Like dude roe is fucked, children are getting massacred, covid isn't done, a million other things are fucked, just give your fucking a base a win already.

 

[jph139]

I expected nothing so I'm pleasantly surprised. I doubt it'll do much to goose turnout if that's their big plan, but if it chops a year or two off of some people's payments, that's a good in-and-of itself.

 

[DrForester]

It's not enough, but it's better than nothing.

Though it better come with continues pause on payments.

 

[Kyrios]

Sadly the alternative will probably start putting people in debtors prisons with the trajectory they're going.

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It's really scary how that's not even out of the realm of possibility with the GOP.

 

[Jarmel]

A better approach would have been doing a base 10k and then heavily means testing for forgiveness above the 10k so that the people who need help the most, get it.

 

[DNAbro]

They should eliminate all of it but it's better than nothing. I only expect the bare min out of Dems

 

[Hero_of_the_Day]

I can't believe how long of a drawn out ordeal they have made this.

Just get this done, dipshits.

 

[Katamari]

He did say on the campaign trail he supports up to $10k loan forgiveness. I guess we shouldn't be surprised that he stayed true to that number.

While I'm not thrilled it's not higher, I'm glad if he follows through. This will help millions of Americans.

 

[The Adder]

Either none can be cancelled via EO or any amount can be cancelled via EO. There's zero reason to cap it at 10k outside of political reasons.

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This is false.

To explain this for a millionth time:

The executive cannot decide how money is spent. That is the purview of Congress.

Not every dollar Congress dispenses to specific things. There is discretionary spending.

Without an act of Congress allotting funds to federal loan forgiveness, any EO would have to use the discretionary funds alloted to the education department. (Or, if they could find some way to bullshit it as spending from another department, those discretionary funds).

If the executive spends more than that, it can be challenged in court by parties interested in doing so, and in all likelihood it will be struck down. Because the constitution pretty firmly gives control of the country's purse strings to Congress.

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[GoldenEye 007]

The average student leaves with just about $23k in debt. That would wipe out nearly half for the average student instantly when otherwise it could have taken 5-7 years to get to that point.

Obviously I'd like more but it's not like $10k isn't a decent amount and that's exactly what he campaigned on. I don't believe he ever suggested $50k or all of it.

 

[Maxim726x]

I guess I shouldn't be surprised with what I'm reading here... But many of you are getting 10k.

And bitching about it. Kinda amazing.

 

[Servbot24]

10k off my bill sounds great to me

I actually paid all of mine off myself recently but having 10k taken off would have been amazing.

 

[Travo]

You think you'll get anything under Republicans? Good luck..

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I've never been delusional enough to believe that that will happen. I was just hoping with a dem controlled house, senate and presidency, we would see more than scraps. 10k is great, don't get me wrong, but was hoping for something that would truly make a difference in people's lives. But should've known last year with Manchin's shenanigans that it would be pointless to go big.

 

[beelzebozo]

i will absolutely take the relief.

i have an application in to have mine forgiven for public service, too, so i will see how that goes. whatever the case my debt burden is fairly small, but my wife will definitely appreciate the 10k.

 

[GoldenEye 007]

Either none can be cancelled via EO or any amount can be cancelled via EO. There's zero reason to cap it at 10k outside of political reasons.

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Political reasons are kind of critically important for a politician given forgiveness above that amount is not popular at all.

 

[QuigleyMcShine]

I think it's great. It'd take out more than half of my wife's loans.

Obviously total forgiveness would be ideal but part of me thinks that should be paired with legislation that addresses the cost of college to begin with.

 

[RailWays]

It's not enough, but it's better than nothing.

Though it better come with continues pause on payments.

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That's a good point, I really hope they keep payments paused

 

[Zombegoast]

Wow, it would drop my student loan debt from 65k to 55k

 

[GoldenEye 007]

I've never been delusional enough to believe that that will happen. I was just hoping with a dem controlled house, senate and presidency, we would see more than scraps. 10k is great, don't get me wrong, but was hoping for something that would truly make a difference in people's lives. But should've known last year with Manchin's shenanigans that it would be pointless to go big.

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$10k is great. But also they deserve to "get voted out?" Which would mean a speedrun to whatever the GOP has planned?

I don't follow the logic.

 

[Chaos Legion]

I guess I shouldn't be surprised with what I'm reading here... But many of you are getting 10k.

And bitching about it. Kinda amazing.

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Most of the nation's 41 million student borrowers stand to benefit. Canceling $10,000 in debt for everyone with federal student loans would settle the balances of roughly a third of borrowers, while cutting total debt by at least half for another 20 percent, according to the latest data from the Education Department. It's unclear, however, how income limits would affect those numbers. An estimated 97 percent of all student debt was held by people earning below the threshold of $150,000 per person and $300,000 per couple in 2019, according to Matt Bruenig, founder of the left-leaning think tank People's Policy Project.

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Like good Lord, some of y'all.

 

[Transistor]

1/5 of my loans. Whoop-dee-fucking-doo

EDIT: Leaving the above shit take for posterity, but I agree this is a major win for so many people and it will knock off a few years worth of payments for me, too, which is fantastic. Hopefully more comes, but I'll take it.

 

[SwampBastard]

I guess I shouldn't be surprised with what I'm reading here... But many of you are getting 10k.

And bitching about it. Kinda amazing.

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I have a hard time understanding it myself. There was zero chance of them just completely wiping the slate clean for every borrower with federal student loans. It's a pipe dream.

I finished grad school in 2014 with almost $100K in debt from under grad, grad school, and accrued interest (this alone was something like $16K). I would have been over the moon to have $10K of it written off. Would more have been better? Of course. But $10K is still a lot of money to anyone in this kind of position and is nothing to sneeze at.

 

[Sirhc]

Obviously total forgiveness would be ideal but part of me thinks that should be paired with legislation that addresses the cost of college to begin with.

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It's been tried, but without a solid control of the Senate there's nothing that can be done, 50(more like 48ish) is just not enough, it's the bare minimum to stave off complete gridlock.

 

[Saucycarpdog]

It's what he campaigned on so at least he's fulfilling his promise.

But we need tuition reform now.

 

[Maxim726x]

$10k is great. But also they deserve to "get voted out?" Which would mean a speed run to whatever's the GOP has planned?

I don't follow the logic.

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There is no fucking logic.

'Why aren't they paying all of my student loans?? What a bunch of assholes!'

Honestly- You all sound like babies. It's unbelievable.

It's what he campaigned on so at least he's fulfilling his promise.

But we need tuition reform now.

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Yes, this is the more important component. The system needs to be changed.

 

[HStallion]

I paid off my student loans off but 10K off would have been amazing even if it didn't clear everything. Would more be even better? For sure but $10,000 is not chump change.

 

[Lkr]

10k is nice and all, but thats it? and people in here already complaining about people being underwhelmed by something that won't actually help most with their monthly finances

 

[mantis23]

a free 10k sounds pretty damn good to me.