Student Loan Forgiveness: Biden Pushes New Rule to Aid 8 Million Borrowers

[BumRushDaShow]

Source: Newsweek

Published Nov 16, 2024 at 11:43 AM EST | Updated Nov 16, 2024 at 1:39 PM EST


President Joe Biden will try to push through more federal student loan forgiveness before he leaves office, this time targeting those who face significant financial hardships. Biden this week announced two income-driven repayment plans for borrowers to work towards the end of their debt or even full loan forgiveness on a 20- to 25-year timeline under the Pay-As-You-Earn (PAYE) and Income-Contingent Repayment (ICR) plans.

On Friday, the Biden administration continued its big push to get in as much debt relief established as possible before the second Trump administration starts by announcing a new waiver on student loan debts in which the bower has experienced or is experiencing hardship related to their loan.

The new provision would define hardship as "likely to impair the borrower's ability to fully repay the Federal government" or "renders the costs of enforcing the full amount of the debt"—or, in other words, if the department determines that the borrower will most likely default on the loan, they'll wipe it out. Officials will use a "predictive assessment" to provide Education Secretary Miguel Cardona with the information and allow him to exercise discretion to dispense this potential one-time relief "as soon as practicable," according to the Federal Register.

The Department of Education (DOE) has determined that the proposed new measure would apply to between 2.67 million and 8 million borrowers. Meanwhile, during Biden's administration, the DOE has provided $175 billion in student loan forgiveness for roughly 5 million people. Newsweek reached out to the Department of Education (DOE) for comment by email on Saturday morning.

Read more: https://www.newsweek.com/student-loan-relief-biden-pushes-new-rule-aid-millions-1986863

[SoCalDavidS]

1. Biden Needs To Quit Helping People

Nobody deserves his help.

[speak easy]

3. 'Biden Needs To Quit Helping People'

A majority does not like helping Other People.

[Silent Type]

2. Probably would have gone better if we pushed income-driven repayment plans, and for those not eligible

the right to declare bankruptcy when there is no way to pay the loans.

Even if this effort fails, the existing income-driven plan is still available.

[OhioBack2Blue]

4. Bankruptcy....Um no.

I have worked my a$$ off my entire life to protect my credit score. It is all I have left after decades of being intentionally oppressed as 3rd class citizen in the American caste system. It would destroy my credit rating and that is not a solution for those of us who still need a solid credit score in order to continue to try to salvage what little life we have left, to start a small business (often requires loans and good credit), to rent an apt (tenant screening requires good credit), or to apply for many jobs (requires good credit), auto insurance which is required (requires good credit).

NO. Bankruptcy is not a solution, it is a kick in the teeth, especially for the already oppressed.

I went back to college as an older, 1 generation, non-trad student because my employer told me I would not be promoted without a bachelor's degree. During this time, I worked 3 part-time jobs, got scholarships, and Pell grants, rejected all FA above and beyond tuition, and attended a public university while renting an off-campus dump to live in. The courses I took were not basket weaving 101, but rather highly practical and business-related. I wasn't living in a dorm, smoking pot, or playing video games, or buying new cars. Then, in 2007 the market collapsed causing 8.7 million people to lose their jobs. Unemployment was 10% and the labor market did not recover until 2015. So I decided to do two more years to get my master's, also in another highly practical, computer related area.

When I left school, I had about $50k in federal direct loans that ballooned to over $81k as the result of predatory interest at 7% which is obscene that the govt. should be making a profit off of student loans. I also could not find employment, because guess what, capitalist do not want to hire people 50 and over. Then, my father was diagnosed with Alzheimer's and I became his caregiver. Then he died, and my mother was diagnosed with dementia, and I became her caregiver. Then she died. Because my parents had to go through medicaid spend down to qualify for memory care, there was no inheritance to be had. I have been repaying this loan for 11 years now, almost $40K but nowhere near payoff because of the ballooning predatory interest (see above). Some people actually deserve loan relief. And, since I will likely be rounded up and put in a concentration camp by the orange fuhrer the loan relief seems particularly appropriate in my case (and before you go there, I am not undocumented).

[Silent Type]

5. Then, you don't have to declare bankruptcy. But it ought to be an option for a single mom/dad who makes less than $30K

because she/he got sick right after graduating and didn't benefit from the loans.

Bankruptcy ain't mandatory.