Biden administration launches student loan review, says 40,000 borrowers will see debt canceled

[1srelluc]

Here it comes, Tater's Hail Mary.

The Department of Education announced Tuesday a new review of its student debt portfolio, which it says will correct for past mistakes that denied 3.6 million borrowers credit toward student loan forgiveness and will lead to immediate cancellation of debt for roughly 40,000 borrowers.

“Student loans were never meant to be a life sentence, but it’s certainly felt that way for borrowers locked out of debt relief they’re eligible for,” said U.S. Secretary of Education Miguel Cardona in a statement. “Today the Department of Education will begin to remedy years of administrative failures that effectively denied the promise of loan forgiveness to certain borrowers enrolled in [income-driven repayment] plans.”

Biden administration launches student loan review, says 40,000 borrowers will see debt canceled

 

[Harry Dresden]

so who are those "certain borrowers ".....

 

[1srelluc]

so who are those "certain borrowers ".....

Family and friends of dem politicians I suspect.

 

[wamose]

This is bullshit.

 

[Votto]

All the animals on Animal Farm are equal, but some of the animals are more equal than the others..............

Shrug, the man is desperate.

Everyone hates him now.

 

[Canon Shooter]

Someone's not thinkin' this shit through.

I was listening to Chad Benson last night, and he was talking about this.

Apparently, the average person with a college degree will earn in the neighborhood of $3.5 million during their lifetime. A person without a college degree will earn closer to $900K. Since this debt is going to be absorbed by the government, what this means is that the guy who's going to earn far less is going to end up paying for the education of the guy who earns over three times as much.

Where's the logic in that?

 

[Woodznutz]

Someone's not thinkin' this shit through.

I was listening to Chad Benson last night, and he was talking about this.

Apparently, the average person with a college degree will earn in the neighborhood of $3.5 million during their lifetime. A person without a college degree will earn closer to $900K. Since this debt is going to be absorbed by the government, what this means is that the guy who's going to earn far less is going to end up paying for the education of the guy who earns over three times as much.

Where's the logic in that?

Actually college grads will be paying for most of it. The less educated hardly pay any taxes at all.

I think the best course of action is to allow those with heavy debt to file for bankruptcy. Those with less than $30,000 in debt should be able to pay it off. They'll just have to forego that new car.

 

[task0778]

Interesting to see if the GOP will contest this in court during an election year. My sense is that the law was designed to forgive debts on an individual one-off basis, but 400,000 cases kinda pushes the boundaries of that legislation quite a bit. The federal gov't never shouda got involved in student loans in the 1st place, give the democrats a miniscule hole and they'll drive a truck through it.

The question will be who gets their debts paid off, a lot of those students will be from wealthy families and that won't play well in Peoria.

 

[Vegasgiants]

All the animals on Animal Farm are equal, but some of the animals are more equal than the others..............

Shrug, the man is desperate.

Everyone hates him now.

Orwell was my favorite socialist

 

[Damaged Eagle]

Someone's not thinkin' this shit through.

I was listening to Chad Benson last night, and he was talking about this.

Apparently, the average person with a college degree will earn in the neighborhood of $3.5 million during their lifetime. A person without a college degree will earn closer to $900K. Since this debt is going to be absorbed by the government, what this means is that the guy who's going to earn far less is going to end up paying for the education of the guy who earns over three times as much.

Where's the logic in that?

You just don't understand. Have some cake...

*****SARCASTIC CHUCKLE*****

 

[Votto]

Orwell was my favorite socialist

Was 1984 a prophecy or manual?

 

[Vegasgiants]

Was 1984 a prophecy or manual?

Both. It was about russia.


But orwell loved socialism

 

[Woodznutz]

Interesting to see if the GOP will contest this in court during an election year. My sense is that the law was designed to forgive debts on an individual one-off basis, but 400,000 cases kinda pushes the boundaries of that legislation quite a bit. The federal gov't never shouda got involved in student loans in the 1st place, give the democrats a miniscule hole and they'll drive a truck through it.

The question will be who gets their debts paid off, a lot of those students will be from wealthy families and that won't play well in Peoria.

Med students often carry debts that go to six figures. As doctors are a 'critical' profession they will likely be favored for debt relief, followed by liberal polysci grads.

 

[GHook20]

Here it comes, Tater's Hail Mary.

The Department of Education announced Tuesday a new review of its student debt portfolio, which it says will correct for past mistakes that denied 3.6 million borrowers credit toward student loan forgiveness and will lead to immediate cancellation of debt for roughly 40,000 borrowers.

“Student loans were never meant to be a life sentence, but it’s certainly felt that way for borrowers locked out of debt relief they’re eligible for,” said U.S. Secretary of Education Miguel Cardona in a statement. “Today the Department of Education will begin to remedy years of administrative failures that effectively denied the promise of loan forgiveness to certain borrowers enrolled in [income-driven repayment] plans.”

Biden administration launches student loan review, says 40,000 borrowers will see debt canceled

Here it comes, Tater's Hail Mary.

The Department of Education announced Tuesday a new review of its student debt portfolio, which it says will correct for past mistakes that denied 3.6 million borrowers credit toward student loan forgiveness and will lead to immediate cancellation of debt for roughly 40,000 borrowers.

“Student loans were never meant to be a life sentence, but it’s certainly felt that way for borrowers locked out of debt relief they’re eligible for,” said U.S. Secretary of Education Miguel Cardona in a statement. “Today the Department of Education will begin to remedy years of administrative failures that effectively denied the promise of loan forgiveness to certain borrowers enrolled in [income-driven repayment] plans.”

Biden administration launches student loan review, says 40,000 borrowers will see debt canceled

This is nothing more then trying to buy votes… the headlines keep saying he is moving toward loan forgiveness giving hope to the 43.6 million with student loan debt. It is gutter politics.

 

[Canon Shooter]

Actually college grads will be paying for most of it. The less educated hardly pay any taxes at all.

Please provide something to back that up.

And the fact that the "less educated" would pay even a nickel of that debt should disgust any decent human being...

I think the best course of action is to allow those with heavy debt to file for bankruptcy. Those with less than $30,000 in debt should be able to pay it off. They'll just have to forego that new car.

Or, how about making these people pay back the money they WILLINGLY borrowed?

If you take out a mortgage, you don't get to decide, at some point, that it's just too great a debt so you're just not going to stop paying it. You pay it or you get foreclosed on. Those who get to stop paying off their college loans should suffer some sort of severe penalty...

 

[Dekster]

so who are those "certain borrowers ".....

The article explains it fairly well as to at least the first group--people who were put into deferment instead of given the option to switch to income sensitive payments will have the portion of the debt cancelled as if they had made the payments during the deferment period. The second group is a little more suspect with the 2013 cut off so everything before that will be treated differently. It sounds like older borrowers will get the biggest benefit from this. If someone graduated, worked a few years and then went to grad school and got a deferment for that, then their however many years in grad school will be treated as payments of some sort under an ICR. How they are going to calculate that seems like an almost impossible task if they don't have the income during those years either to determine what the payments would have been. I assume they will remove all the capitalized interest and possibly shorten up the original 25 year ICR's to the current 20 year plans. Not sure.

 

[Woodznutz]

Please provide something to back that up.

And the fact that the "less educated" would pay even a nickel of that debt should disgust any decent human being...



Or, how about making these people pay back the money they WILLINGLY borrowed?

If you take out a mortgage, you don't get to decide, at some point, that it's just too great a debt so you're just not going to stop paying it. You pay it or you get foreclosed on. Those who get to stop paying off their college loans should suffer some sort of severe penalty...

Or the colleges could pony up some refunds to the students that were hoodwinked into taking out those loans. The kids, the schools, and the government are complicit here. Also there are likely some parents who co-signed these loans who are also liable.

Those kids were like cattle in a chute that leads to only one place... college. There was no turning back, but to actually enter they had to find the money. Enter the government with the 'guaranteed student loan' program. The kids were assured that they would be well able to repay the loans via the high paying jobs that awaited them upon graduation.

 

[Dekster]

Interesting to see if the GOP will contest this in court during an election year. My sense is that the law was designed to forgive debts on an individual one-off basis, but 400,000 cases kinda pushes the boundaries of that legislation quite a bit. The federal gov't never shouda got involved in student loans in the 1st place, give the democrats a miniscule hole and they'll drive a truck through it.

The question will be who gets their debts paid off, a lot of those students will be from wealthy families and that won't play well in Peoria.

It is 40K borrowers not 400K. My guess is they are people who are more than 20 years into repayment (i.e. professionals who went on to grad school). The original ICR's were 25 years and then they decided to shorten it to 20 years, so they are the ones who are just crossing the 20 years or repayment.

Now all that said, it isn't all free money. The IRS whacks you with the discharge amount as income for tax purposes, so if you still owe say $100K you were planning on paying off over the next 5 years, you will now have the added taxes to pay on an additional $100K of "income" this year if it happens. Some people pay not have prepared for this, and IRS interest is a hell of a lot higher than student loan interest rates and they can be pretty aggressive in going about collecting it.

 

[Canon Shooter]

Or the colleges could pony up some refunds to the students that were hoodwinked into taking out those loans. The kids, the schools, and the government are complicit here. Also there are likely some parents who co-signed these loans who are also liable.

Hoodwinked?? What a crock of shit. Do you support forgiving mortgages, too, because people have to borrow money to buy houses?

I didn't go to college. It wasn't because I couldn't get accepted, it was because we couldn't afford it...

 

[Woodznutz]

Hoodwinked?? What a crock of shit. Do you support forgiving mortgages, too, because people have to borrow money to buy houses?

I didn't go to college. It wasn't because I couldn't get accepted, it was because we couldn't afford it...

I didn't go either. I had to shoot my way out of high school.

If I had to do it over again I still wouldn't go to college.

"Working hands are a terrible thing to waste."