Student loan cancellation
-
It’s very interesting. Can’t wait for a proper analysis from Sarah and David.
-
Biden administration stops taking applications
The Biden administration has stopped accepting applications for federal student loan forgiveness after a court struck down its plan on Thursday evening.
“Courts have issued orders blocking our student debt relief program,” according to a note on the forgiveness application page at Studentaid.gov. “As a result, at this time, we are not accepting applications. We are seeking to overturn those orders.”
The suspension of the forgiveness program comes shortly after a federal judge in Texas rejected President Joe Biden’s executive action in August to cancel up to $20,000 in student debt for tens of millions of Americans.
The Biden administration said the Justice Department has already appealed the decision.
“We believe strongly that the Biden-Harris Student Debt Relief Plan is lawful and necessary to give borrowers and working families breathing room as they recover from the pandemic and to ensure they succeed when repayment restarts,” Education Secretary Miguel Cardona said in a statement. “Amidst efforts to block our debt relief program, we are not standing down.”
The main obstacle for those hoping to bring a legal challenge against Biden’s plan has been finding a plaintiff who can prove they’ve been harmed by the policy.
“Such injury is needed to establish what courts call ‘standing,’” said Laurence Tribe, a Harvard law professor.
For that reason, Tribe said he was floored by the Texas judge’s ruling.
“Judge Pittman’s decision was about as wrong and weird as any federal court ruling I can recall reading,” Tribe said. “He was wrong to decide the merits without first deciding whether either of the two plaintiffs had standing.”
-
Biden administration asks Supreme Court to reinstate student loan forgiveness
The Biden administration on Friday asked the Supreme Court to reinstate its student loan forgiveness program, saying its creation was well within the authority of the education secretary and that a lower court decision putting it on hold “leaves millions of economically vulnerable borrowers in limbo.”
The U.S. Court of Appeals for the 8th Circuit decided 3 to 0 on Monday to side with a coalition of six Republican-led states that requested that the court table any debt cancellation amid its ongoing litigation. The injunction is to remain in place until further notice from the court or the Supreme Court, according to the order.
The ruling arrives days after a federal judge in a separate lawsuit in Texas declared Biden’s debt relief plan unlawful, effectively barring the Education Department from accepting more applications and discharging any debt. This week, Justice Department attorneys asked the U.S. Court of Appeals for the 5th Circuit to stay the ruling in the Texas case. and asked the court for a ruling by Dec. 1 “to allow the government to seek relief from the Supreme Court” if needed.
-
It's only wise to decide the issue before dispersing the money.
-
The Texas lawsuit standing argument is really interesting. I still can’t figure out if it’s super clever or question begging.
Though I read (Ilya Somin for example) that the case of the 6 GOP states is stronger. I think this will manage to be overturned before it’s implemented.
DON’T let them eat cake.
- RFK Jr -
@jon-nyc said in Student loan cancellation:
The Texas lawsuit standing argument is really interesting. I still can’t figure out if it’s super clever or question begging.
Though I read (Ilya Somin for example) that the case of the 6 GOP states is stronger. I think this will manage to be overturned before it’s implemented.
Do you mean the Texas decision will be overturned or the Biden plan will be overturned?
-
Biden plan will be.
-
Meanwhile, the ads during the election featuring loan cancellation were saturating the airwaves in college towns.
-
-
I do feel bad for the kids. They don’t really get it yet. I mean, Lucas got the economics of everything and rationally he knew that this program could ultimately cost him more than it gave him, on an emotional level these kids thought $10-20K in debt was about to be wiped out and now it’s not.
-
@Mik said in Student loan cancellation:
At this point Biden doesn't care whether its implemented or not. he can claim he fulfilled his promise and if it gets overturned the GOP is to blame.
Yep. That’s the bitch of it.
-
Yeah, especially since they banked it mentally.
It’s one thing for the Dems to say “your loans would be forgiven if it weren’t for these damn republicans voting against it”. It’s another if they get it and plan around having it for four months and the the GOP takes it out of their hands.
-
If Congressional R’s were smart, they would start working on some comprehensive student loan reform that did include some sort of relief and would have lasting benefit.
-
Stop Interest Capitalization on Federally Subsidized Loans. Forbid capitalization on private loans from Approved Lenders.
Cap interest rates from approved lenders at 10%
Make student debt interest dischargeable in bankruptcy.
Revamp the GI Bill, include some non-military options and promote retroactive options… Just graduated from with a bachelors in engineering but buried in debt already? Welcome to the Army Corps of Engineers… We’ll pay off your debt and you will make a living. Hell, we’ll even help with graduate school… Today’s military needs college grads more than high school grads…
Expand the Pell Grant program income eligibility and amounts for students going to 2 year trade schools. Push the hell out of that program.
-
And yes, forgive student loans that have paid as much in interest as they have in principle.
-
@LuFins-Dad said in Student loan cancellation:
If Congressional R’s were smart, they would start working on some comprehensive student loan reform that did include some sort of relief and would have lasting benefit.
Hate to break it to you….
-
@LuFins-Dad said in Student loan cancellation:
Stop Interest Capitalization on Federally Subsidized Loans. Forbid capitalization on private loans from Approved Lenders.
Cap interest rates from approved lenders at 10%
Make student debt interest dischargeable in bankruptcy.
Revamp the GI Bill, include some non-military options and promote retroactive options… Just graduated from with a bachelors in engineering but buried in debt already? Welcome to the Army Corps of Engineers… We’ll pay off your debt and you will make a living. Hell, we’ll even help with graduate school… Today’s military needs college grads more than high school grads…
Expand the Pell Grant program income eligibility and amounts for students going to 2 year trade schools. Push the hell out of that program.
Honestly #3 solves the debt problem moving forward. #5 is just good policy, period.
DON’T let them eat cake.
- RFK Jr -
@jon-nyc said in Student loan cancellation:
@LuFins-Dad said in Student loan cancellation:
Stop Interest Capitalization on Federally Subsidized Loans. Forbid capitalization on private loans from Approved Lenders.
Cap interest rates from approved lenders at 10%
Make student debt interest dischargeable in bankruptcy.
Revamp the GI Bill, include some non-military options and promote retroactive options… Just graduated from with a bachelors in engineering but buried in debt already? Welcome to the Army Corps of Engineers… We’ll pay off your debt and you will make a living. Hell, we’ll even help with graduate school… Today’s military needs college grads more than high school grads…
Expand the Pell Grant program income eligibility and amounts for students going to 2 year trade schools. Push the hell out of that program.
Honestly #3 solves the debt problem moving forward. #5 is just good policy, period.
Just to make sure you caught it, #3 is not to make student debt dischargeable, just the interest. Willing to consider making the debt dischargeable, though.
