Capitol Hill Blue Forums Political Issues The Biden Administration Biden to Cancel $10,000 in Student Loan Debt

Biden to Cancel $10,000 in Student Loan Debt for Borrowers Earning Less Than $125,000

Why?

When I was young, I could not afford college. My single mother couldn't afford to send any of us kids to college. It cost too much.

When I was a little older, I looked into going to college myself and taking out loans to cover it. After hearing the repayment details, I decided that I would not take a chance on it. I didn't think I would be able to make the payments if I didn't get into the field I was seeking.

It was a choice on my part. It wasn't something that someone was forcing on me. I had a decision to take those loans and to take the chance that it would pay off - or not.

I decided not.

I don't understand why taxpayers should pay for the debt of others when those people could have chosen not to get into that risky situation in the first place.

Like other loans, we make decisions based on different circumstances, whether to take a loan for different things. I have had automobile loans. I get tired of having to repay them too. I also have a mortgage. Why can't I get the taxpayers to give me a break on my auto loan or mortgage and pay them back for me?

I fail to understand how an education loan should be any different than any other kind of loan.

BTW, even without college, I was able to make decisions, there we go again with that word - decisions - which have allowed me to work up to a 6 digit income and to be able to live comfortably (not rich by any means, but comfortable) - which I am thankful for.

Education is expensive.
Generational ignorance is ten times more so.

First of all, taxpayers are not paying anyones debts. Most loans are over $10K. The interest is 9% and has been for three decades and never once adjusted down even when interest rates were at zero. At best, the government will cancel $10K in interest.

The loans will still be owed as most loans average $35K in principle.

It’s sad that when the government helps poor and minority folks - it’s called a handout and people are outraged; yet the government helps white people like farmers - it’s called a subsidy,

I would prefer my student loan to be reset at a lower interest rate, all accumulated interest removed. so that I can begin paying down the principle - which I have never been able to do. I’ve paid close to $15K on my loan and never once did one dollar ever go to the principle. The principle is exactly the same amount today as it was when I left college. THAT’s a problem.

Interest is free money on a loan to the loan maker, ie the government in this instance. How are tax payers paying on that? They’re not. It’s just hyperbole and majority are pissed that poor folks and minorities are finally getting some break.

A lot of Boomers cancelled their student loans in bankruptcy when it was allowed - Boomers have not complained about that! But Boomers politicians sure got that rule changed that so future generations could not do the same, as student loans were singled-out from being unable to be discharged when Bankruptcy Reform happened during the GW Bush years.

via CNN.com

Yesterday, a lawsuit was filed in federal court to block the Biden administration's plan to forgive $10,000 in federal student loan debt for folks with qualifying loans and income of less than $120,000 a year. The plan also offers an additional $10,000 in loan forgiveness to folks who received Pell grants, to target borrowers who were more likely to come from low-income families.

The lawsuit was filed by a dude named Frank Garrison who works for the Pacific Legal Foundation, an outfit described by CNN as a "a nonprofit libertarian law firm," and which is handling the lawsuit on Garrison's behalf. The Washington Post similarly describes the foundation as "a conservative public interest law firm in California."

As Judd Legum from the Popular Information website points out:


As Legum also points out, Garrison's lawsuit against loan forgiveness faces a few hurdles, mainly because to have standing to sue, the plaintiff needs to show not just that they think a government action is bad and wrong and will sap the vitality of the American people's precious bodily fluids, they also have to show that they have been harmed by the policy, which is a big ask when you're talking about a plan to relieve people's student debts. How is someone else getting up to $20,000 damaging to this Frank Garrison fellow?

The lawsuit claims, however, that Garrison will be harmed by having $20,000 of his own debt forgiven. The American Rescue Plan exempted any future federal loan forgiveness from federal taxes. But apparently coming out $19,000 ahead, in Indiana, would be a great injury to this Garrison fella.

White House Assistant Press Secretary Abdullah Hassan called the claim "baseless" because the program won't oblige anyone to accept loan forgiveness if they'd rather have their debt.

Also this Garrison dude, filed the lawsuit as a Indiana resident. Indiana is one of the few states that would tax student loan forgiveness provided by Biden's program as state income tax. The "problem" is that this dude's Linkedin page says he's a resident of DC.

A conniving lying Rwinger is trying to harm the middle-class and the poor by getting rid fo this benefit - and Garrison's employer is forum-shopping because it worked (for the most part) for the criminal orange clown with respect to Judge Cannon - it will become a component of the Rwing playbook in the future. So what else is new?

This is a reminder that conservatives would rather see poor folks get evicted and/or get saddled with debt than see big businesses have to sacrifice profit for the public good.

Other loans are dischargeable in bankruptcy, student loans are not thanks to Baby Boomers discharging student loans en masse when student loans were allowed to.

Essentially, now-a-days with tuition costing thousands to tens of thousands of dollars per semester, and the high interest rates of 9% and greater, along wit the debt being non-dischargeable, student loans have become a debtors prison. THIS is why Biden's relief helps...not a lot, but a little. Even token measures are appreciated.

Yesterday, I talked to the Department of Education regarding my FFELP loan. The guy on the phone convinced me to apply for a new "consolidation loan." That would take my FFELP and bring it into the fold of the "Direct Student Loan" program. I applied yesterday evening.

Now I read this:

Biden administration scales back student debt relief for millions amid legal concerns


I only found out last year that my loan was owned by Deutsche Bank. All this time, I thought the federal government owned it. The federal government only guaranteed the loan.

Today, this offer is rescinded, but those who applied prior to the announcement will be granted. I can't believe I got my application in under the wire.

UPDATE to the Garrison post above.

After Garrison filed suit, the White House announced that every borrower would have the option to opt out. Then, on Wednesday, the Justice Department confirmed in a filing that “any borrower who qualifies for automatic debt relief - relief without filing an application - will be given an opportunity to opt out.” The Department of Education confirmed this option online.

Here's the best part...

The Justice Department informed Garrison’s lawyers that he did not even need to opt out. “Upon receiving this lawsuit and reviewing Plaintiff’s filings,” the agency wrote, “the Department has already taken steps to effectuate Plaintiff’s clearly stated desire to opt out of the program and not receive $20,000 in automatic cancellation of his federal student loan.

What an idiot Garrison is!

The federal government holds this student loan debt. In the end, the federal government will decide what to do with it.

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Doug

Thank you Doug