pipsBiden administration forgives $39 billion in student debt for more than 800,000 borrowers
OptimisticPrimeIt is great but as long as new debt will be immediately acrued by current students this is just a temporary fix. Or is there anything planned how to deal with that?
This action makes a good headline for re-election purposes.
Kata1ystOh yes, let's never do anything good, because there might be something else even more impossible that would be better.
The point being made is that it’s infuriating to watch “good” politicians half-ass policies that, if more thoroughly implemented, would be life-changingly positive for an enormous swath of our citizenry.
It’s not “half assed” it’s literally “the only still possible to do after voters gave Republicans so goddamn much power”.
You want real change, then fight republicans out of everything for the next 30 years.
A president doing something that’s popular in order to get elected? Preposterous!
Do you feel that this in insincere or misleading?
Fredselfish Guess it’s fuck me then. Biden not getting my vote fuck him. This probably get blocked too and he knows it. Cancel it all our fuck off.
Cool, the next rethuglican president will probably work out way better for you.
Is our education system so broken that you didn’t know that a “loan” is?
Did he get your vote last time? Some people don’t vote solely on the ‘what can you do for me specifically’ criterion
Did he get your vote last time?
With 99.99% accuracy I predict: No, he didn’t. This poster probably fought him tooth and nail, and not just in the primary where that’s encouraged, but in the presidential election where it is simply not acceptable anymore right now.
I held my nose and voted for him. Had to get Trump out of office. Sick of it though the lesser evil is still evil.
It’s a new payment plan, so apply to new student debt as well.
If I’m reading the StudentAid.gov correctly, the SAVE plan has the following:
- Increase in income exemption to 225% of poverty line (~$66k/yr)
- Undergraduate Loans now are 5% of AGI above exemption limit
- No interest accrued if you make your monthly payment
- After 10 yrs of payment, if principle loan was $12k or less, loan is forgiven. Payment period increases by 1 yr for every $1k over that amount (e.g. for $20k loan, forgiveness after 18 yrs)
ThisIsNotHimIf you read the article, yes.
Debt forgiveness occurs after 10 years in an income-driven repayment plan (down from 20-25 years). Payments in these plans is now capped at 5% of discretionary income (down from 10%). Unspecified improvements to tracking progress towards loan forgiveness (historically this has been done by the company servicing the loan, and they are beyond awful at it, so this might just be not relying on them for this decision anymore).
If you guys would take the time to read the article you would see that this is not the same debt forgiveness plan as before. The plan cancels the debt remaining for students who have been making payments for 20 years. It’s not a one time action but will be available to anyone in the future under the same circumstances.
A suggestion how to write that same comment, but make it sound much more positive while inquiring about the future:
It is great!! Is there anything planned how to deal with new debt being immediately acrued by current students, or is this just a temporary fix?
Seriously, we need to teach ourselves to not immediately doubt everything with “but what about”. We need to acknowledge positive news first, then ask how to improve things. For our own mental health.
PositiveNoiseDidn't we just watch this episode? Let me guess, either Palpatine and/or the 'supreme court' is going to cancel this.
This is what happens when the writers go on strike...
The relief is a result of fixes to the student loan system’s income-driven repayment plans. Under those repayment plans, borrowers get any remaining debt cancelled by the government after they have made payments for 20 years or 25 years, depending on when they borrowed, and their loan and plan type.
Both parties are going to act like this is some giant thing…
But the people eligible are already in their 40s. If this was holding them back from buying a house, they’ll have mortgage payments till their 70s.
Better than nothing, but a perfect example of “too little, too late”.
The forgiveness applies to anyone who enrolls in the new plan, not just existing loans.
New plan is 10 yrs for <= $12k in loans, increasing a year for every $1k additional, so for example, someone who takes out $20k in loans can have the remainder forgiven after 18yrs of payments.
The 20/25 yrs was the oldest forgiveness plan with lower principal loan and income levels.
Additionally, if you’re making your monthly payments, no interest accrued.
So now the administration is tooting their own horn about… checks notes… helping a bit over 5% of the number of people they were supposed to help, which was already a controversial reduction from the number of people who should have been helped by this campaign promise being executed on?
Forgiving student debt for 804k people costs 39 billion? So on average they owed 45,5 million in student debts? Like… what? How?
How old and British are you?
Jordan Lund39 billion / 804,000 = $48,507.46 on average.
It’s never been clear to me why people who borrowed money should not have to pay it back.
People get tricked into loans they can’t afford. “No, no, see, it’s cool, once you graduate, you’ll be rolling in it!” Queue 20 years of service industry jobs paying barely subsistance wages (happened to my wife).
Here’s the experience with our kid, he graduated debt free 4 years ago.
When he was in high school, we got all these emails and memos about “FAFSA, FAFSA, FAFSA” and we went to the school and did all the seminars and all the forms and everything.
Kid got his first choice school - UC Davis - “Well, we’ve reviewed your FAFSA information, and counting tuition, scholarships, room and board, you need to take out parental plus loans of $56,000 a year for four years.”
Yeah no.
Kid got into his second choice school, Lewis and Clark, we thought “Great! In state school! This should be better…”
“Well, we’ve reviewed your FAFSA information, and counting tuition, scholarships, room and board, you need to take out parental plus loans of $56,000 a year for four years.”
🤔 That’s the same oddly specific number the out of state school dropped… if we could afford that, he’d be going to UC Davis.
Want to guess what his 3rd choice school came back with (University of Oregon Honors College)?
“Well, we’ve reviewed your FAFSA information, and counting tuition, scholarships, room and board, you need to take out parental plus loans of $56,000 a year for four years.”
So three schools, 1 out of state, 2 in state, all working from FAFSA all came back with the same oddly specific number. What are the chances of that? OTHER parents would have been sorely tempted to go “Well, I guess that’s just what school costs…”
WE bailed on the FAFSA system, enrolled him as a normal student at the University of Oregon. Tuition was about $10,000 a year, he had a scholarship that paid $5,000 a year, I ran the other $5K through my Amazon card for points, paid his rent, and gave him a $300 credit limit card for food and expenses.
4 years later he graduated with a CS degree, no debt and went to work at Intel making 6 figures.