Posted on 02/18/2025 1:09:51 PM PST by DFG
A U.S. appeals court on Tuesday blocked the Biden administration’s student loan relief plan known as SAVE, a move that will likely lead to higher monthly payments for millions of borrowers.
The 8th U.S. Circuit Court of Appeals sided with the seven Republican-led states that filed a lawsuit against the U.S. Department of Education’s plan. The states had argued that former President Joe Biden lacked the authority to establish the student loan relief plan.
The GOP states argued that Biden, with SAVE, was essentially trying to find a roundabout way to forgive student debt after the Supreme Court blocked his sweeping debt cancellation plan in June 2023.
SAVE, or the Saving on a Valuable Education plan, came with two key provisions that the lawsuits targeted. It had lower monthly payments than any other federal student loan repayment plan, and it led to quicker debt erasure for those with small balances.
Implementing SAVE could cost as much as $475 billion over a decade, an analysis by the University of Pennsylvania’s Penn Wharton Budget Model found. That made it a target for Republicans, who argued that taxpayers should not be asked to subsidize the loan payments of those who have benefited from a higher education.
However, consumer advocates say most families need to borrow to send their children to college today and that they require more affordable ways to repay their debt. Research shows student loans make it harder for people to start businesses, buy a house and even have children.
The court’s ruling comes at the same time that House Republicans are floating proposals that could raise federal student loan bills for millions of borrowers.
(Excerpt) Read more at cnbc.com ...
No there is no need to a “more affordable way” to pay debt, there needs to be an end to creating this debt and colleges needs to be held accountable. There needs to be a way to sue colleges for false advertising of education that will never allow a student to pay back there debt.
their
Claw back the student debt forgiveness debacle. Tax every dollar forgiven as income and assess a 100 percent rate on that said income.
Or....
Identify which school said student went to and withhold all federal funding and grants until that waste is recovered.
All education loans should come exclusively from the institution providing the education. If the student gets a good education, which leads to a good career, they should have no trouble paying back the loan to the institution. But if the institution wants to throw money away by giving out degrees in Lesbian Dance Theory, then the financial loss is their choice.
Universities have high endowments. Let them loan the money and take the risks. It is not good training to allow students to not be responsible for the debts they incur.
Universities have high endowments. Let them loan the money and take the risks. It is not good training to allow students to not be responsible for the debts they incur.
“All education loans should come exclusively from the institution providing the education. If the student gets a good education, which leads to a good career, they should have no trouble paying”
Not just a career. I have a degree in history. I am appreciative of the insight it has given me. I never worked as a historian but I feel it was worthwhile.
I WANT EVERY SINGLE PENNY BORROWED TO BE PAID BACK.
THAT MONEY CAME FROM TAXPAYERS-—AND WE DID NOT arrange for the loans. NOT EVER.
Nancy Pelosi told Biden he didn’t have the Constitutional power of the purse, but he ignored her, and Pelosi after that said nothing.
Agreed! Institutions need skin in the game
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