Biden announces student loan payment pause extension: What borrowers can do now https://www.foxbusiness.com/personal-finance/student-loan-payment-pause-extension-august-update
Rising interest rates, crazy inflation...too many people with student loan debt up to their butts or they are co-signed on the student loan debts of their young adult kids...they aren't going to be happy with just an extension. The extension only gives them a little more time before the shit hits the fan for them. wrbtrader
Typical of government not addressing the actaul problem. Ridiculous tuition fees combined with teaching nonsense subjects which lead to unemployed graduates. If we're not going to fix that, and we won't, then give them a choice. Pay the tuition or mandatory 3 years military service after graduation. Infantry positions only, no exceptions, no deferred status.
Midterms are getting closer, so we have to start promising voters we'll make good on those promises we made last year that we have no intention on making good on next year.
Expect it to heat up significantly as mid terms approach. Then after, it will fade away again, with promises unkept.
Biden rules out forgiving $50,000 of student loan debt per borrower https://www.axios.com/biden-student-debt-forgiveness-dd4c795a-8511-46bf-80a3-8c96ebf7ea10.html President Biden said Thursday that his administration is looking at ways to reduce "some" federal student loan debt. Why it matters: However, he said specifically his administration is not planning to forgive up to $50,000 per borrower, a figure repeatedly proposed by Senate Majority Leader Chuck Schumer (D-N.Y.) and other Democrats. What they're saying: "I'm in the process of taking a hard look at whether or not there will be additional debt forgiveness," Biden said. "I'll have an answer on that in the next couple of weeks," he added. The big picture: The Biden administration this month extended the federal student loan repayment pause in response to the coronavirus pandemic until the end of August. Go deeper: Biden admin moves to fix "longstanding failures" in student loan programs
They forgot to include that all the voting parents & students who scrimped and saved to send their children (or themselves) to college without debt will be paying for the dismal of this student debt --- much of it accumulated by families that blew their money on exotic vacations and automobiles then took out student loans. This is rewarding these people for piss-poor financial behavior. Not to mention cancelling student debt primarily helps wealthy people. Why Biden is resisting the pressure to cancel $50,000 in student loan debt per borrower https://www.cnn.com/2022/04/28/politics/biden-student-loan-debt-forgiveness-problem/index.html President Joe Biden has a student loan debtforgiveness problem. Lawmakers within his party continue to put the issue front and center, urging the President to cancel $50,000 for each of the 43 million federal student loan borrowers-- something he has shot down repeatedly, including on Thursday. Biden has already canceled more student loan debt than any other president by making it easier for students defrauded by for-profit colleges or those working in the public sector to receive forgiveness through existing relief programs. The President also recently extended the pandemic-related payment pause for a fourth time under his administration -- moving the expirationdatefrom May 1 to August 31. But those moves have done little to ease the political pressure. On Wednesday, Senate Majority Leader Chuck Schumer called on Biden yet again to cancel $50,000 in student debt for each federal borrower by using executive action. "Borrowers don't just need their debts paused; they need them erased," Schumer said from the Senate floor. "With the flick of a pen, President Biden could provide millions upon millions of student loan borrowers a new lease on life," the New York Democrat added. The pressure is ramping up in a midterm election year and as recent polling shows that Biden's approval rating continues to drop with young Americans. More than 100 Democratic members of Congress signed a letter sent to Biden last month that urged him to "cancel a meaningful amount of student debt." A handful of progressive lawmakers, including Sen. Bernie Sanders of Vermont and Rep. Pramila Jayapal of Washington state, appeared with student debt cancellation organizers outside the White House on Wednesday to show their support. So far, Biden has resisted the pressure to cancel $50,000 in student loan debt for every borrower. On Thursday, he doubled down on that stance while leaving the door open to some kind of student debt cancellation. "I am considering dealing with some debt reduction. I am not considering $50,000 debt reduction," Biden said at the White House after unveiling new funding for Ukraine. "But I'm in the process of taking a hard look at whether or not there are going -- there will be additional debt forgiveness, and I'll have an answer on that in the next couple of weeks." Later Thursday, White House press secretary Jen Psaki confirmed that "there's been no conclusion of any process internally yet." There are several reasons why Biden may be resisting the pull from the left wing of his party. Legal authority is unclear Biden made it clear during his presidential campaign, after the Covid-19 pandemic began, that he supported partial cancellation of federal student debt. His campaign proposal called for immediately canceling a minimum of $10,000 in student debt per person as a response to the pandemic, as well as forgiving all undergraduate tuition-related federal student debt from two- and four-year public colleges and universities for those borrowers earning up to $125,000 a year. But he has also urged Congress to take action to cancel debt, rather than said he could use executive power to do so. It's not totally clear that the President's executive authority allows him to broadly wipe away student debt. Last year, Biden directed lawyers at the Departments of Education and Justice to evaluate whether he does, in fact, have the power to broadly cancel federal student loan debt. The administration has not disclosed those findings. But a September 2020 memo from lawyers at Harvard University's Legal Services Center and its Project on Predatory Student Lending argues that Congress has given the power to broadly cancel federal student debt to the Department of Education through a law known as the Higher Education Act. It gives the education secretary the authority "to create and to cancel or modify debt owed under federal student loan programs," the memo says. Inflation is a key issue for voters It may sound counterintuitive to borrowers who would benefit from debt cancellation, but some experts sayforgiving student loans would add to inflation. This is a problem for Biden and other Democrats, who are getting blamed for rising gas and grocery prices. Millions of people would be able to spend money -- roughly $4 billion a month, per one estimate -- on things other than their monthly student loan payments. And people may be more likely to make big purchases, like cars or houses, if they no longer have student debt hanging over their heads. A report from the Committee for a Responsible Federal Budget estimated that canceling all $1.6 trillion in federal student loan debt would increase the inflation rate by 0.1 to 0.5 percentage point over 12 months. Canceling $50,000 per borrower would result in a smaller increase, but the group did not estimate that effect. "It's not gigantic," said Marc Goldwein, senior vice president and senior policy director for the Committee for a Responsible Federal Budget. "In a normal inflation environment, it wouldn't be a big deal. But we're in a very precarious situation right now and at risk of inflation spiraling out of control," he added. Canceling debt could benefit a lot of wealthy people Biden has repeatedly said he is committed to making sure wealthy Americans pay their fair share and has proposed raising taxes on the richest Americans. Canceling student debt could run afoul of that policy goal. Canceling student debt for everyone would disproportionately benefit higher-wealth households, like those with doctors and lawyers, because those borrowers tend to have more student debt after attending graduate school. As of 2019, households with graduate degrees owed 56% of the outstanding education debt. A more targeted approach, like canceling debt for borrowers who earn less than a certain income threshold or canceling loans borrowed only for undergraduate degrees, could help make sure more of the benefit is reaching the Americans most in need. "If you did even basic targeting, then way more of the money would go to low-income borrowers," said Adam Looney, a nonresident senior fellow at the Brookings Institution who has studied student debt relief policies. Still, canceling student loan debt wouldn't solve the fundamental problem with college affordability. Biden also campaigned on making community colleges free, a move that would require an act of Congress, but that proposal was cut from his Build Back Better agenda. "If you don't fix the system, these problems are going to reoccur and we'll be back in the same crisis we are now," Looney said. Biden has signaled he would be open to excluding high-income borrowers from student loan debt cancellation, arguing last year that the government shouldn't forgive debt for people who went to "Harvard and Yale and Penn." Psaki said Thursday that the President continues to consider some type of means testing when it comes to loan cancellation. "He has talked in the past about how he doesn't believe that millionaires or billionaires should benefit -- or even people from the highest income -- so that is certainly something he would be looking at," she said. To date, Biden's actions have delivered more than $17 billion in targeted student debt relief to 725,000 borrowers. About $3.2 billion of that was canceled for borrowers who had been defrauded by their for-profit colleges.
Biden knows that more people will be upset having to foot the tax bill for college loans of kids who had no right going to expensive schools they could not afford with a major that was unemployable....so is waffling. But let's look at it this way.... homeowners were never bailed out of buying homes they could not afford with gimmicky mortgage loans and took the losses while the investment banks who created the products and profited heavily off of them were mostly bailed out by the federal government and taxpayer. So the question is why do the corporations always get the bailouts when they fuck up but individuals are constantly told they should be responsible for their actions and pay their debts.... I can accept not giving any loan forgiveness if corporations have to suffer the same fate as well.... As for colleges being too expensive, they are....extremely....but you dont need to go to Syracuse and pay $80,000 a year to succeed in life when a SUNY is 1/3 the cost...
...and people who made the decision never to go to college, some of them because they didn't want to go into debt. How about them? What do we do going forward, as students keep enrolling and borrowing? It seems like loan forgiveness requires subsidized or free college in the future.