Biden administration announces $39 billion in student debt relief for 804,000 borrowers

The Hill ^ | 07/14/2023 | Jared Gans

[ChicagoConservative27]

The Biden administration has announced that it will provide $39 billion in total student debt relief for 804,000 borrowers, its latest step since President Biden’s student loan forgiveness plan was struck down by the Supreme Court.

The Education Department said on Friday that the relief is being provided on income-driven repayment plans, in which the federal government cancels remaining balances for the borrower after they have made their payments for 20 or 25 years.

The department said the “fixes” will more accurately count monthly payments that qualify under the plans, and it will notify borrowers who are eligible for the relief in the upcoming days.

The Supreme Court struck down Biden’s plan to give $10,000 of student debt relief to low- and middle-income borrowers and up to $20,000 for Pell Grant recipients in a 6-3 decision last month. The majority found that Congress had not directly authorized the president to forgive debts worth in aggregate hundreds of billions of dollars.

[American Infidel]

When will big gov start addressing this problem at its root? Bring the heads of these universities with the huge, multi-billion dollar endowment funds and ask them why tuition is so expensive when it clearly isn't worth the price being charged? If graduates are unable to secure employment that allows them to pay back the loans (that they willingly took), then what is the selling point of a degree?

Outside of a few areas of study such as engineering, math, science, finance, or technology, most degrees are simply glorified HS diplomas with 6-figure price tags.

$150K in debt for a degree in humanities or gender studies is a horrible "investment". Start grilling the people in charge of the colleges who sell these useless degrees.

[Angelino97]

* Court rulings are only honored when the left wins.

* Election results are only honored when the left wins.

* Protests (and even vandalism) are only permitted when it promotes the left.

* Speech is only allowed when it advocates for the left.

How can you take back the country when the rule of law no longer applies equally to all sides?

[Organic Panic]

And with no penalties or interest deferred it means they still won’t bother paying.

[Eleutheria5]

What part of “unconstitutional” does he not get?

[Worldtraveler once upon a time]

--- 'And with no penalties or interest deferred it means they still won't bother paying."

I come to conclude that the corrupt postmodern Demo-Left (and RINO-Left to my view today), seeing their policies fail as consequences mount up, have only the rudimentary game remaining. Buy votes with other people's money.

Years ago in Europe, I saw a BBC "Hard Talk" presentation in which a rather Leftist sort of interviewer had on a fellow in the Attlee government after WWII. This jackass Lefty politician was saying how wonderful things were then. The interviewer observed, "Yes, but then there was 23% unemployment." The Lefty politician's answer, "perhaps, but at least WE were in charge." That sums up these sociopaths quite nicely for me.

For them when it is not about power and money and privilege for themselves, it's instead about power and money and more privilege for themselves.

[sauropod]

“Stroke of the Pen. Law of the Land. Kinda Cool.”

[sauropod]

Which circle of he!! are we living in?

[Svartalfiar]

"....after they have made their payments for 20 or 25 years...."

After making payments. That's the clever little PR rub.

I don't know.. Are there really 800,000 people who have been paying their loans for 20+ years and still have a balance (average $50M)?

To do that, you'd have to be in your mid-40s at the youngest. So pulling demo data for these US, we'll say 45 is the line since that's how most of these demo numbers are grouped. 45+ is 42% of the 333MM population, so 140MM people.

Pulling random data from Brave search, looks like ~45% of adults have an associate's, 35% have a bachelors, and ~15% have masters. So lets go with 45% at bachelor's level (15% masters adds to that +10% to associates to even out into a bachelors cost). That brings us down to 63MM people in this population group.

Several random colleges' blurbs show they generally have 40-60% of students receiving some aid. So 31MM. Actually way less since many of these are partial loans, and we're ignoring grants/GI Bill/etc also.

So out of the less than 30MM 45+ adults who received some aid, 2.5% still haven't paid them off? With a remaining balance of $50M average?!!?! (Well, $40M average. Gotta take 10% for admin costs and 10% for the big guy.)
And this is people with a history of paying their loan payments properly that still haven't paid it off, and not including people who actually did already get their balances forgiven?

I dunno, seems like 800M people is an excessively large number based on the requirements to qualify above...?

[sauropod]

Me as well.

[dfwgator]

Wait until those borrowers find out that relief will be considered as income, for tax purposes.

[Jotmo]

Because collages are largely government indoctrination and socialist brainwashing centers.

That is of value to the deep state, and it’s a reward to their most ardent supporters.

[Zathras]

This should be an easy one.
The Supreme Court has already ruled and they can smash this down as saying simply Biden trying to do a endgame on the Court.
Courts REALLY don’t like this.
Biden has now made an enemy of the Supreme Court.

[ro_dreaming]

Or those of us who are still paying on a house, for that matter. We get nothing, pay everything.

[TwelveOfTwenty]

I'm torn on this.

On one hand, we have the self righteous snots who got into debt over their degrees in "Homosexuality in Homo-sapiens" studies so they could feel good about their enlightened selves. No sympathy for them from me.

OTOH, we have the students who did what they were supposed to do by getting degrees in employable technical fields, only to be unable to find work in their fields because the previous generations thought saving $.10 on communist made paint brushes was more important than their own kids' futures.

In the case of the latter it's the free traitors I have no sympathy for. They can just add this to the cost of those communist made items they think they're saving money on.

It would be great to know that the kids who got the tech training will be the beneficiaries of this, but given who's running this government it will probably be the former.

[Reverend Wright]

Democrats pay off their core supporters.

Repubs display their political virtue by penalizing their core supporters.

Guess who wins ?

[dragnet2]

They need to help those in debt for credit cards, car loans and mortgages!

[Liberty Ship]

LOL. Well, Army did not pay my tuition but I was ROTC. Ironically, I requested Air Defense Artillery but they assigned me to Finance. Trust me, you didn’t miss much!

[Night Hides Not]

Thanks for your service. I probably would have been a lousy Finance Corps Officer, wasn’t ready to sit behind a desk. After flunking my first ARTEP, I knew the game better, never had any problems after that.

I never considered myself more than an average officer, though I was adept at a few things. I didn’t suffer fools gladly, which got me in a bit of hot water with a couple of superior officers. lol

[Worldtraveler once upon a time]

--- "I dunno, seems like 800M people is an excessively large number based on the requirements to qualify above...?"

Agree. But "pulling numbers out of a hat" is the political media model for the Left these days. They are not interested in reality, but how they can manipulate it to their own ends.

[Texas resident]

He IS telling the SC to screw off and lying to the student borrowers. They think the 804K borrowers will buy this BS and vote for the shell formerly known as Joe Biden.