Posted on 07/20/2023 2:42:07 AM PDT by Libloather
After finding legal loopholes around the Supreme Court’s student loan decision, one personal finance expert unveiled what the Biden administration isn’t broadcasting about its new repayment plan.
"They're really pulling the wool over people's eyes because they go, 'oh, there's forgiveness here, I don't have to pay my loan,'" Jade Warshaw, "The Ramsey Show" co-host, said Wednesday on FOX Business' "Mornings with Maria." "But what they're not saying is how many years it takes to actually get this forgiveness."
President Biden announced the new student loan handout legislation - dubbed the Saving on a Valuable Education (SAVE) plan - which aims to cut monthly payments while following an income-driven outline.
Borrowers could see their monthly payments go to zero dollars, be cut in half, or those who do make payments may save up to $1,000 per year, the White House said in a statement.
"If you have $12,000 of student loan debt, that's the bar getting into this, and you're going to have to pay for 10 years in order to see that forgiveness. And then for every additional thousand, you pay another year," Warshaw explained.
"So the average person has about $30,000 of student loan debt," she continued. "That's 30 years they're going to have to pay before they see this forgiveness at the end of the rainbow… it’s a bait and switch."
Loan repayments were set to begin again in October after more than three years on hold amid the COVID pandemic. Warshaw pointed out how Biden’s revamped plan - which was struck down by the Supreme Court last month - discourages living debt-free.
"During this three-year pause, we only saw that about 1% of borrowers continued to make payments… we've seen the studies come back that the others who did not take that windfall...
(Excerpt) Read more at foxbusiness.com ...
Dementia Joe knows he bought some votes.
The big problem is these votes are dumber than a box of rocks.
There will be no handout for these people.
You take a loan, you pay it back.
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