Posted on 11/17/2022 9:07:39 PM PST by SeekAndFind
Biden's student loan forgiveness plan is going to the Supreme Court.
After Biden's plan to buy votes in exchange for forgiving a portion of one's student loan was halted by two federal courts in recent weeks, both of which found it to be unconstitutional, the admin's Justice Department is asking for quick action to block both rulings and allow the plan to take effect even as it plays out in the nation’s courts.
As a result, the White House plans to ask the Supreme Court to reinstate the president’s student debt cancellation plan, according to a Thursday legal filing warning that :Americans will face financial strain if the plan remains stalled in court" when loan payments are scheduled to restart in January.
In a legal filing Thursday, the administration announced plans to appeal one of those rulings, by a federal appeals court in St. Louis, to the nation’s highest court. It also said it’s prepared to appeal the other case if needed.
The White House has said it will prevail, but even supporters of the plan worry about its chances before a conservative Supreme Court that has scaled back Biden’s authority in other ways, including in a June decision curbing the Environmental Protection Agency’s ability to limit power plan emissions.
Keeping the debt relief on hold would leave the government with an “unnecessarily perilous choice,” the administration argued in its filing. If it restarts student loan payments as planned on Jan. 1, millions of Americans will get billed for debt that was promised to be canceled. Which probably means the president should not have promised to cancel it; meanwhile if the government extends the payment pause, it will cost billions of dollars in lost revenue. It builds on arguments the administration made in other filings this week, warning that many Americans won’t be able to pay their student debt bills in January if the cancellation plan remains halted.
Biden’s plan promises $10,000 in federal student debt forgiveness to those with incomes of less than $125,000, or households earning less than $250,000. Pell Grant recipients, who typically demonstrate more financial need, are eligible for an additional $10,000 in relief.
Almost 26 million people already have applied for the relief, with 16 million approved, but the Education Department stopped accepting and processing applications last week after the plan was ruled illegal.
For typical borrowers, monthly payments would be $200 to $300 higher than they would be if Biden’s plan goes through, the Education Department said. The strain could lead to soaring default rates, and push the country into an even deeper recession.
“We anticipate there could be an historically large increase in the amount of federal student loan delinquency and defaults as a result of the COVID-19 pandemic,” Education Undersecretary James Kvaal said in a Tuesday filing. “This could result in one of the harms that the one-time student loan debt relief program was intended to avoid.”
In other words, the president is hoping that his unconstitutional scheme in which taxpaying citizens fund the liberal education of deadbeats so the US recession isn't even deeper than it currently is, is overturned by a conservative dominated supreme court. GLWT.
GOVERNMENT IS NOT YOUR DAD.
GOVERNMENT IS NOT CHARITY.
NOT THE ROLE OF GOVERNMENT TO BAIL OUT BAD PERSONAL FINANCIAL DECISIONS.
Yeah it needed caps.
Can’t discharge student loans by bankruptcy
Student loans should be dischargeable in bankruptcy under some circumstances.
It should have been done in the last major BK reform.
In my opinion the lack of BK protection has screwed lots of students who should not have been, and driven the obscene cost of credits today.
The author of the article has no understanding of the subject matter.
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“We anticipate there could be an historically large increase
in the amount of federal student loan delinquency and defaults
as a result of the COVID-19 pandemic,”
Education Undersecretary James Kvaal said in a Tuesday filing.
-
Delinquency and defaults are not “bankruptcy”.
Here’s an idea
Since homeowners are dictated to lower rents 15%, why aren’t schools and colleges told to lower their tuition?
Imagine the precedence this sets if it wins. Now every government handout can be dictated by any president because people might go bankrupt if they don’t get their free government cheese.
Let me get this straight.
Option 1: Government “forgives” your debt and you don’t owe anything. Government doesn’t get paid.
Option 2. Students declare bankruptcy. Government doesn’t get paid.
So the outcome is the same. At least in #2, there’s a short-term black mark against the student who welched on the loan.
There is no bankruptcy against student loans they can declare bankruptcy against any other debt HOWEVER student loans are exempt from bankruptcy!!
Thanks. I stand corrected.
You have repeatedly informed us our economy is strong and
we are in good financial shape. Why then, are you expecting
bankruptcy and ask for trillions of debt to be canceled?
This makes no sense unless you are lying to us and once again
are attempting to pull the wool over our eyes. We are aware
you bought those votes and stand to lose a great deal if you
fail to end up to your end of the bargain. For the record,
your pain is about to become more intense. Have a great time, for persons such as you are known to love pain when it might be inflected on you.
Let me know when that make matriarchy, errr I mean “child” support dischargeable in bk. DH’s ex shrew is still on the payroll as his last kid, who is working full time, turns 20 (goes to 21 here in NYS)
They impoverish mostly blue collar white men, then threaten them with debtors prison if they don’t pay via the various agencies (for which local offices get federal incentives for highest amount ordered and collected; Title IV-D of the Social Security Act, Thanks Clintoons).
Some real data???
The reason student loan debt is not able to be discharged from bankruptcy is because students, especially students like lawyers and doctors with huge loan debt and high income potential, would file bankruptcy upon graduation when they had nothing to lose.
They would go on to make a ton of money and stick the taxpayer with the hundreds of thousands of dollars costs of their education
You broke the law Biden so go jump off a bridge.
There are several other things he could have done besides promising freebies for GenZ votes. Convert all interest on payments to actual reduction of the original principal, provide tax credits for payments actually made, or just start making interest-free loans. But then that wouldn’t provide the windfall to those who are still sitting on some of the cash they borrowed. No partying and vacations, then.
Suggest we provide all these COLLEGE EDUCATED deadbeats with a tent and sleeping bag. Point them to a street corner or highway underpass and tell them GOOD LUCK!!
And NO, I DON’T WANT FRIES WITH THAT!!!
Student loans should be co-signed by the University. When they produce sub-standard graduates that can’t earn the money to pay back the loan, they can just dig in to their endowment to make it right.
“Can’t discharge student loans by bankruptcy”
The reason for that is the government is financing their gold-plated retirement plans using student debt. At the time they made that decision student debt was like a gold standard bond. The repayment rate was huge. But then Congress started giving debt to people for degrees like gender studies. The reason student debt was made the backer of government retirement plans is because when Congress passed the law that company retirement plans had to be funded, they forgot to exempt the government. This is a long-winded way of saying that the government will never cancel student debt because then they’d have to raise taxes to fund the retirement plans that no taxpayers are or ever will be again eligible.
One reason that student loan debt is NOT dischargeable is the fact that there is no collateral for a student loan. What would be the incentive for the student NOT to declare bankruptcy upon graduation? Bottom line is this: 1) Holders of student debt must pay off their obligations. 2) No further loans should be made. 3) The program should be shut down immediately. The federal government should not be in the business of providing student loans as its presence distorts the market.
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