Biden's Student Debt Relief Plan

[cgr]

President Biden has announced the following relief measures for student borrowers:
1) repayment deferred until Dec 31
2) income-based repayment cap of 5%
3) $10k-$20k forgiveness to those earning less than $125k ($250k joint)

https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/

https://studentaid.gov/debt-relief-announcement/

[yelped]

Earning $125k when? When the loans were taken out, or currently?

[cgr]

Earning $125k when? When the loans were taken out, or currently?

Details aren't available yet, but my assumption is that they'll look at 2021 tax returns.

[Ver hut gazugt]

Earning $125k when? When the loans were taken out, or currently?

250k per couple

[ExGingi]

President Biden has announced the following relief measures for student borrowers:
1) repayment deferred until Dec 31
2) income-based repayment cap of 5%
3) $10k-$20k forgiveness to those earning less than $125k ($250k joint)

https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/

https://studentaid.gov/debt-relief-announcement/

Where does the authority to forgive debt come from?

[aygart]

President Biden has announced the following relief measures for student borrowers:
1) repayment deferred until Dec 31
2) income-based repayment cap of 5%
3) $10k-$20k forgiveness to those earning less than $125k ($250k joint)

https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/

https://studentaid.gov/debt-relief-announcement/

"Since 1980, the total cost of both four-year public and four-year private college has nearly tripled, even after accounting for inflation. Federal support has not kept up: Pell Grants once covered nearly 80 percent of the cost of a four-year public college degree for students from working families, but now only cover a third. That has left many students from low- and middle-income families with no choice but to borrow if they want to get a degree. According to a Department of Education analysis, the typical undergraduate student with loans now graduates with nearly $25,000 in debt. "

[Sammy82]

Where does the authority to forgive debt come from?

I think it's only for federal loans (90% of all student loans).
But still a good question.

[cgr]

Where does the authority to forgive debt come from?

He's using executive action. Legal challenges are expected (although states can't sue here since this only applies to federal debt)

[shmooz]

Does it apply to current students?

[aygart]

Where does the authority to forgive debt come from?

From it being politically inexpedient to sue to block it.

[cgr]

Does it apply to current students?

Yes, but not yet clear til which semester.
Biden will be holding a presser at 2:15, and more details will be released in the coming days and weeks.

[hvaces42]

Yes, but not yet clear til which semester.
Biden will be holding a presser at 2:15, and more details will be released in the coming days and weeks.

Debt must have been incurred prior to July 1, 2022.

[ExGingi]

https://twitter.com/metresteven/status/1562454532936048642

[Redbull3]

Woooo hoooo

[aygart]

https://twitter.com/ABC/status/1562522259444535297

[YitzyS]

Here's my thoughts on this.

Canceling student debt is not necessarily a good move ahead of an election. Although many would benefit from the money, most of those are already voting for Democrats, and giving them free money would not necessarily have the same impact as the stimulus payments had previously. BUT, fighting to defend the cancelation of student debt CAN help Biden. If Republicans sue to stop the bill, and it turns into a long protracted legal fight over the cancelation of student debt, it gives Biden the edge, because it makes it seems like Republicans are just fighters and that Dems didn't actually do any harm.

I know it's weird, but I really think that the best thing Republicans can do now is to back off and let Biden forgive student debt as quickly as possible. Having actually done it will do more to harm Biden than the notion of him planning to do it.

Just my thoughts.

[Euclid]

Here's my thoughts on this.

Canceling student debt is not necessarily a good move ahead of an election. Although many would benefit from the money, most of those are already voting for Democrats, and giving them free money would not necessarily have the same impact as the stimulus payments had previously. BUT, fighting to defend the cancelation of student debt CAN help Biden. If Republicans sue to stop the bill, and it turns into a long protracted legal fight over the cancelation of student debt, it gives Biden the edge, because it makes it seems like Republicans are just fighters and that Dems didn't actually do any harm.

I know it's weird, but I really think that the best thing Republicans can do now is to back off and let Biden forgive student debt as quickly as possible. Having actually done it will do more to harm Biden than the notion of him planning to do it.

Just my thoughts.

(Why is everything looked at through a political lens? I hate politics.)

[imayid2]

Here's my thoughts on this.

Canceling student debt is not necessarily a good move ahead of an election. Although many would benefit from the money, most of those are already voting for Democrats, and giving them free money would not necessarily have the same impact as the stimulus payments had previously. BUT, fighting to defend the cancelation of student debt CAN help Biden. If Republicans sue to stop the bill, and it turns into a long protracted legal fight over the cancelation of student debt, it gives Biden the edge, because it makes it seems like Republicans are just fighters and that Dems didn't actually do any harm.

I know it's weird, but I really think that the best thing Republicans can do now is to back off and let Biden forgive student debt as quickly as possible. Having actually done it will do more to harm Biden than the notion of him planning to do it.

Just my thoughts.

what about people, lots of them, worried about inflation, might they be duly concerned?
https://www.foxbusiness.com/economy/biden-student-loan-plan-could-worsen-inflation-crisis-analysis-shows

The Committee for a Responsible Federal Budget (CRFB), a nonprofit based in Washington, argued that Biden's executive order — which will wipe out $10,000 in debt for borrowers earning less than $125,000 and $20,000 for Pell grant recipients — could inflame inflation, which is already hovering near a four-decade high.

"This announcement is gallingly reckless, with the national debt approaching record levels and inflation surging, it will make both worse," said Maya MacGuineas, CRFB president. "Policymakers have already spent $300 billion on student debt relief — none of it paid for — and this would add another $400 to $600 billion, again, none of it paid for."

[CountValentine]

(Why is everything looked at through a political lens? I hate politics.)

Some people just can't help themselves. The days of they did it because it was the right thing to do is over for most voters. Thank G-d for the I's.

[yesitsme]

How can I apply for a loan