Posted on 07/10/2025 4:12:07 AM PDT by dennisw
Mike Pierce, the executive director of the Student Borrower Protection Center, called the policy pivot by the Trump administration a 'betrayal'
'Instead of fixing the broken student loan system, Secretary McMahon is choosing to drown millions of people in unnecessary interest charges and blaming unrelated court cases for her own mismanagement,'
The Student Borrower Protection Center's mission is to reduce the federal student debt burden on Americans, which has swelled to over $1.6 trillion.
Student debt is more difficult to get rid of than other types of debt, as it cannot be discharged in bankruptcy.
The student loan balances for roughly eight million Americans are about to balloon now that the Department of Education plans to restart interest charges by August 1.
This action affects the 7.7 million borrowers who are enrolled in the Biden-era Saving on a Valuable Education (SAVE) Plan, a program that shrunk payments to $0 a month for people under a certain income threshold.
The interest charges for SAVE borrowers will kick in at the start of next month, though they won't have to resume making payments.
The Education Department said the primary reason it restarted interest was because it sought to comply with a federal court injunction from July 2024 that blocked the full implementation of the SAVE plan.
The injunction from the Eighth Circuit Court of Appeals is what placed borrowers in an indefinite period of forbearance, which postpones their payments.
That was done so the federal government could figure out how to transition millions of people out of the program, later ruled to be illegal by the same court in February 2024.
'For years, the Biden Administration used so-called "loan forgiveness" promises to win votes, but federal courts repeatedly ruled that those actions were unlawful,' Education Secretary Linda McMahon said in a statement.
(Excerpt) Read more at dailymail.co.uk ...
Don’t tell me, let me guess... women and minorities hardest hit?
This represents a huge voting block that is going to be desperate to get rid of the burden. It could kill Republican chances in the next election. There needs to be some kind of relief mechanism. However, as part of that, the program, that is student loans, should be eliminated and taxes placed on colleges that received federal money.
Boo hoo........
>> I had to work to pay as you go through college because I didn’t qualify for any financial aid
It made you the theramin-player with character that you are today! Plus, higher education was more affordable before the government inflated it by force-pumping gubmint money into the system.
I think the way to fix the system on-going is for everyone to have skin in the game. Return lending to the banks and only give partial government guarantees.
Banks should only lend for degrees where the earning potential is enough to actually pay back their loans and loans.
Make the colleges have part of the obligation to get the students a degree that they can actually use to get a job that pays enough to pay off their loans and make it clear that students ultimately will have to pay.
Thermite’s more fun. In the dark.
I have news for you: This “huge voting block” is already voting more heavily for Democrats than any other group of Americans — except perhaps for wealthy black Jewish homosexuals with homes in NYC and Los Angeles. :-P
Colleges have turned out debt ridden nincompoops. Colleges are nothing more than indoctrination centers and that is why they opened the doors to people who really didn’t belong in college. That is why all the worthless courses and degrees in fields that are made up and lead to nowhere.
Indoctrinate and get them in debt from the very beginning. That is what they do.
Don't sign the contract unless you understand its terms and conditions.
The general rule is that student loans are not easily discharged in bankruptcy. If paying back the student loan is too onerous the 'student' should do what others do, namely declare bankruptcy.
"In doing so, there is key distinction from other forms of unsecured debt, such as credit card debt or medical bills, which are often discharged more readily in bankruptcy proceedings. However, there is an exception to this rule: student loans can be discharged if the borrower can prove "undue hardship."
Defining "Undue Hardship" The term "undue hardship" is not explicitly defined in the Bankruptcy Code, so courts have developed their own standards to evaluate these claims. The most widely used standard is the Brunner test, which requires the debtor to prove three elements:
Minimal Standard of Living: The debtor cannot maintain a minimal standard of living for themselves and their dependents if forced to repay the loans.
Persistence of Financial Situation: The debtor's financial situation is likely to persist for a significant portion of the repayment period.
Good Faith Effort: The debtor has made a good faith effort to repay the loans.
Re: 'Exceptions' explanation from wslaw.com
1.6 $Trillion. 7.7 million borrowers. 6.8% average interest. Massive deportations. Fed holding tight on interest rates. An albatross around the necks of a generation. Doesn’t bode well for home ownership, marriage, starting families, etc. Trump’s recent reconsideration about deporting ag, hospitality and processing workers suggests he’s aware of what’s around the economic bend. Amazon Prime day #s down over 40%. Evidence of the American consumer circling the wagons. My daughter’s medical school student loans are staggering. Fortunately she was able to save $ during her 4 year residency (approx $56K annual salary and $92K for fellowship. She just contracted for a $325K salary plus bonus and benefits. I cannot fathom what lies ahead for those with liberal arts degrees. Statistics indicate 80% of college grads enter the work force in jobs unrelated to their studies. What the colleges and culture have wrought is nothing short of criminal.
“Crippling” interest charges? Then why the Hell did they take out the loans? Now we’re going to get a bunch of nauseating sob stories about a bunch of 24-year-olds who are unemployed and can’t pay their student loans.
These scofflaws need to repay their debt. Who cares if they have to make some sacrifices. THEY took out the loans...pay them back, you weak sisters! No excuses.
“”””Student debt is more difficult to get rid of than other types of debt, as it cannot be discharged in bankruptcy. “”
You get rid of it by PAYING IT OFF.
Oh my....crippling. That sounds bad.
Only in liberal Never-Never land is requiring people to pay back their loans called a “betrayal”.
It was common knowledge around 2013 that if you worked for a non-profit, Obama was going to eliminate your student loan.
Trump had nothing to do with the problem students put themselves in.
“This represents a huge voting block that is going to be desperate to get rid of the burden”
The writing was on the wall when these people voted last Nov. I doubt Republicans can lose much more of their votes in 2026.
This is a very common sentiment these days. It sounds good, but when you think about it, it would be an absolute disaster in practice. A college that has a financial stake in these debts would have a huge incentive to hand out degrees in high-value professions like candy. The moron who just graduated with a degree in African lesbian studies would be replaced by a moron who somehow manages to get a pre-med degree with a 4.0 GPA.
This arrangement would be like having car dealerships serve as motor vehicle agencies. Even Stevie Wonder would get a driver’s license from a dealer that wants to sell him a Corvette.
“””Mike Pierce, the executive director of the Student Borrower Protection Center, called the policy pivot by the Trump administration a ‘betrayal’ ‘Instead of fixing the broken student loan system,””””
Just like fixing Biden’s illegal invasion, Trump is fixing the student loan problem by making the deadbeats pay off their loans.
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