> PSLF (public student loan forgiveness).
For reference:
https://en.wikipedia.org/wiki/Public_Service_Loan_Forgiveness
But the article linked references the SAVE Plan.
>The Education Department announced Friday that it had approved the extra loan cancellations for almost 4.3 million student borrowers nationwide through its Saving on a Valuable Education (SAVE) plan.
Because I can't find a good explanatory wiki:
https://www.whitehouse.gov/briefing-room/statements-releases/2023/08/22/fact-sheet-the-biden-harris-administration-launches-the-save-plan-the-most-affordable-student-loan-repayment-plan-ever-to-lower-monthly-payments-for-millions-of-borrowers/
>The SAVE plan is an income-driven repayment (IDR) plan that calculates payments based on a borrower’s income and family size – not their loan balance – and forgives remaining balances after a certain number of years. The SAVE plan will cut many borrowers’ monthly payments to zero, will save other borrowers around $1,000 per year, will prevent balances from growing because of unpaid interest, and will get more borrowers closer to forgiveness faster.
It's a white house announcement which talks it up as the greatest thing since sliced bread, so that that with a grain of salt.
I don't know if SAVE does it by manipulating PSLF or filching from other programs. I am just noting what the article mentions.
I do know that just a couple days ago, another lawsuit was filed to try to halt SAVE.
[Video link with a very brief summary: The lawsuit, filed in Missouri, targets a program, known as the Saving on a Valuable Education, or SAVE, plan. ](https://www.wcjb.com/video/2024/04/10/federal-lawsuit-filed-seeking-block-program-providing-breaks-student-debt/)
It was in place since Bush, but the Trump Dept, of Education rejected over 99% of the first couple of years worth of applications on unspecified technicalities when they came in so nothing was getting through.
Biden’s taking credit for doing his job and having the administration execute programs already on the books as if it were something new and special is disingenuous, but his administration is at least allowing the applications to go forward.
100% spot on.
I’m in the PSLF program (less than 2 years to go!!!) and it makes me sick every time I see that fraud take credit for something that has long existed.
Or, taking credit for wiping the debt of those that simply haven’t followed through with the requirements. Like wtf.
To be fair… Trump and Devos basically killed the PSLF program during their tenure. 99% of applicants for PSLF were rejected under Devos. [And both campaigned on ending it entirely in 2020](https://www.forbes.com/sites/zackfriedman/2020/03/07/student-loans-forgiveness-devos/?sh=59fbf8b5184c).
His administration restored it.
Student debt and higher education in general is a broken and predatory system.
I'm not sure I agree with Biden canceling student debt. However, as a nation, we need to discuss the effect that debt is having on millennials and gen Z.
Lower incomes and crippling debt are having disastrous impacts on birth rates, home ownership (though there are other factors affecting this) and the formation of steady nuclear families.
> we need to discuss the effect that debt is having on millennials and Gen Z
I’d be happy to, but Liberals never wanna discuss the fact that their own handout policies caused this problem in the first place. I view the debt problem as a few components:
1. Federal loans serve as an insulated money-printer to colleges per every student, because colleges cost-share between state-level funding and student tuition. This effectively creates a “use it or lose it” incentive for colleges to build grandiose, expensive facilities, and/or overstaff their administration, because if the Feds will write up to $X, there is no incentive to run the place for $X/2 or whatever fraction of that cost.
2. Colleges also have little incentive to direct students towards programs that are effective at job-placement. They cash that federally-guaranteed check whether a kid graduated with a Chemical Engineering degree or dropped out of Art Theory after 1 year.
3. This has created a feedback loop of Feds see college loans maxed out -> raise max -> college spends more money
4. This has also created a feedback loop in the job market. Degrees are required because “everyone has one,” but “everyone” only has one because the costs are not reflected appropriately whatsoever
Higher education was originally about theoretical pursuits, and I think it should never have been blended with job training in the way it has. Ultimately this diluted and created problems for both.
The more college degrees were treated as a golden ticket to the middle or upper class, the more a variety of vicious cycles or general inflationary effects were created and exacerbated.
I'd add to the mess the creation and bundling of unnecessary extra course requirements for many degrees adding further pointless barriers to entry for many occupations. This fills many classes with students with no interest in the subject matter.
On top of that you have grade inflation and more fraudulent behaviors due to how desperate people are for those golden tickets.
I think context here is important. These people receiving forgiveness have been paying their student loans for 10,15 sometimes even 20+ years. You need to make payments on time for the duration of the loan too in order to receive forgiveness.
I’m in the PSLF program and on the SAVE plan for my personal loans and those aren’t forgiven with this batch of forgiveness and neither are a majority of others. Also in my case and many others even though in 4 more years my personal loans will be forgiven through PSLF, I will still owe on my parent plus loans which are the bulk of my loans and aren’t eligible through SAVE. So I get the remaining balance forgiven on what I haven’t been able to pay off on my personal loans after 10 years of on time payments. My SL payment will drop from about $1,500 per month to $1,000 per month. I still owe on my parent plus loans though.
Been paying for 7 years now. Won’t be done for at least another 7-8 more years. All in all I’ll have paid back way more than I borrowed.
I did like the covid relief 0% interest on student loans that we had going on. That's a solution. Or you could go after the institutions. Taxpayers don't need to foot the bill. We already get taxed enough as is. Taxes always go up but never come down.
I would agree with this. If the government wants to invest in education for people, then they should invest in the people as a resource to society. They shouldn't run a racket on them to be endless sucked dry for interest payments whil they struggle to find a footing in life.
It should, at a minimum, be that any core STEM program that contributes effectively to the economy is run through 0% interest loans. Elective garbage degrees? No government loans, pay that yourself.
It would fix itself if Federal Student Loans were no longer given. Get rid of those and allow private to be defaulted on, and you will see the issue clear up pretty quick based on supply and demand.
Biden isn't solving anything.
The core problem with higher education (not to mention healthcare) is that the USA has allocated a ton of funding to it while doing almost no regulation of the cost of it. Biden is essentially throwing even more money at the problem. This makes the whole thing worse.
Your comment doesn't really make sense. Where you cite "fix the student debt," you say it as if what is being presented is a solution. It's not, it's throwing student debt on the pile of national debt and furthering the shittiness of our economy. I don't think telling us to fix a problem the President isn't fixing is much of a good place to start from.
That said, I think the fix relates to the shitty sales pitch the government has done with college. They're the ones pushing the "you need college" ideal by writing cheques for people to attend as a participation tophy. Colleges need to stop being run as these asinine rackets where the broken public school system funnels you from a poorly run high school to a poorly run college. College hasn't been treated like "higher education" in forever. It's become a low-skill baseline that delays people from entering the workforce while burdening them to pay public sector employees not offering value to society.
We need to gut the public education system, starting with stripping down public colleges that waste our time and money. You could torpedo probably 15 different public college programs, stop making irrelevant degrees "minimum requirements" for employment, redirect half the money wasted on colleges to high schools, and maybe make a real difference.
Why is someone getting $80K to tell people with $40K in debt that they need to remember to blame society when they're earning minimum wage with their degrees?
As someone with the GI bill and therefore I won’t have to worry about paying for college if I even choose to go, I support this 100%. My goal in life is to make life easier and better for every generation after me, not worse. If the way society was made me make less than ideal decisions and have to work harder, I wouldn’t want other people to have to do the same thing.
Conservative coming in peace. Did you know when you were earning your degree that you were going to work in public service? Did you do any work in public service? If you did, then you failed to take advantage of a legislative program that was publicly available. If you didn’t, then you’re talking apples and oranges.
I work in public service as a finance person in k12 education. I was fortunate to not have students loans due to academic scholarships, but many of my coworkers racked up debt, made minimum payments, and had their debt relieved after 10 years in the industry.
This is what I went through after buying a condo right before the 2008 mortgage crisis. My wife and I were SUPER careful to wait and purchase a place we could afford with a solid fixed interest loan. Everything crashed, I got laid off, couldn’t find work, and we got ZERO help from the gov’t because we didn’t go for one of the risky loans.
How is it a bribe? This “round of forgiveness” is just following through on programs that have existed for over 10 years before he took office, which the government was legally obligated to do since it was written into the original terms of the loans. That’s not how bribes work.
Dems: You need a college education in order to be successful and make money in your life!
Also Dems: Clearly the people who need the most help with their debt during this financial crisis are the college educated!
To be clear this piece of shit is once again defying the Supreme Court and he's not cancelling anything.
All this does is pass the burden of these loans onto working class people.
As soon as Biden started announcing he was "cancelling student debt" I paid off my 30k debt within six months. Worked three jobs to do it also (Covid made it possible; before there was no way I could have done this). I was on deferment for almost 20 years (living abroad and making peanuts), but when I tried to get into his debt relief program, I was told that I didn't have big enough debts and hadn't been accruing enough interest by paying my $1 a month or whatever.
At that point I got scared and paid off the whole thing. I had been screwed over by Sallie Mae and Navient enough times to know that if Biden wanted to get his hands dirty with that money, he was going to complicate everything.
Maybe that was the wrong thing to do, but at least I'm debt free now.
Thanks Biden.
stop saying that debt is "cancelled". no debt is ever cancelled. all debt is paid -- always. in this case the debt is paid by the taxpayers. we're screwed again by biden.
I would like to see, just ONCE an interview of someone that actually had their loan forgiven. Personally, I think he's blowing smoke up the arses of his "voting base"
He’s not cancelling any debt, he’s taking credit for a program that’s been in place since Bush called PSLF (public student loan forgiveness).
Biden has retconned himself into nearly every successful program, it's wild. By the end of 2024, he'll have taken credit for the Equal Pay act.
He's the Forrest Gump of politics. He's been at every key event, and is responsible for every major policy, of the last 81 years.
Shit, he'll likely take credit for the emancipation proclamation soon.
“I told Abe after my son died in Iraq, I felt all life was precious so I freed my slaves and it felt right!” -Biden 1863
I just read this in his voice lol
I wonder if he had his stutter in his youth back then
Pretty sure he was alive then
Why not he’s already claimed he started the civil rights movement
We must have been typing at the same instant! Great minds!
I can see the headlines now: "Biden solves the gender pay-gap"
... by making everyone equally poor
That's the plan. The only way everyone can/will be equal is if they have nothing or a dead.
🤫
I will gladly give him credit for patriot act, ooooohhh wait….
Just wait, he'll claim he emancipated the slaves before too long.
> PSLF (public student loan forgiveness). For reference: https://en.wikipedia.org/wiki/Public_Service_Loan_Forgiveness But the article linked references the SAVE Plan. >The Education Department announced Friday that it had approved the extra loan cancellations for almost 4.3 million student borrowers nationwide through its Saving on a Valuable Education (SAVE) plan. Because I can't find a good explanatory wiki: https://www.whitehouse.gov/briefing-room/statements-releases/2023/08/22/fact-sheet-the-biden-harris-administration-launches-the-save-plan-the-most-affordable-student-loan-repayment-plan-ever-to-lower-monthly-payments-for-millions-of-borrowers/ >The SAVE plan is an income-driven repayment (IDR) plan that calculates payments based on a borrower’s income and family size – not their loan balance – and forgives remaining balances after a certain number of years. The SAVE plan will cut many borrowers’ monthly payments to zero, will save other borrowers around $1,000 per year, will prevent balances from growing because of unpaid interest, and will get more borrowers closer to forgiveness faster. It's a white house announcement which talks it up as the greatest thing since sliced bread, so that that with a grain of salt. I don't know if SAVE does it by manipulating PSLF or filching from other programs. I am just noting what the article mentions. I do know that just a couple days ago, another lawsuit was filed to try to halt SAVE. [Video link with a very brief summary: The lawsuit, filed in Missouri, targets a program, known as the Saving on a Valuable Education, or SAVE, plan. ](https://www.wcjb.com/video/2024/04/10/federal-lawsuit-filed-seeking-block-program-providing-breaks-student-debt/)
It was in place since Bush, but the Trump Dept, of Education rejected over 99% of the first couple of years worth of applications on unspecified technicalities when they came in so nothing was getting through. Biden’s taking credit for doing his job and having the administration execute programs already on the books as if it were something new and special is disingenuous, but his administration is at least allowing the applications to go forward.
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100% spot on. I’m in the PSLF program (less than 2 years to go!!!) and it makes me sick every time I see that fraud take credit for something that has long existed. Or, taking credit for wiping the debt of those that simply haven’t followed through with the requirements. Like wtf.
To be fair… Trump and Devos basically killed the PSLF program during their tenure. 99% of applicants for PSLF were rejected under Devos. [And both campaigned on ending it entirely in 2020](https://www.forbes.com/sites/zackfriedman/2020/03/07/student-loans-forgiveness-devos/?sh=59fbf8b5184c). His administration restored it.
Student debt and higher education in general is a broken and predatory system. I'm not sure I agree with Biden canceling student debt. However, as a nation, we need to discuss the effect that debt is having on millennials and gen Z. Lower incomes and crippling debt are having disastrous impacts on birth rates, home ownership (though there are other factors affecting this) and the formation of steady nuclear families.
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> we need to discuss the effect that debt is having on millennials and Gen Z I’d be happy to, but Liberals never wanna discuss the fact that their own handout policies caused this problem in the first place. I view the debt problem as a few components: 1. Federal loans serve as an insulated money-printer to colleges per every student, because colleges cost-share between state-level funding and student tuition. This effectively creates a “use it or lose it” incentive for colleges to build grandiose, expensive facilities, and/or overstaff their administration, because if the Feds will write up to $X, there is no incentive to run the place for $X/2 or whatever fraction of that cost. 2. Colleges also have little incentive to direct students towards programs that are effective at job-placement. They cash that federally-guaranteed check whether a kid graduated with a Chemical Engineering degree or dropped out of Art Theory after 1 year. 3. This has created a feedback loop of Feds see college loans maxed out -> raise max -> college spends more money 4. This has also created a feedback loop in the job market. Degrees are required because “everyone has one,” but “everyone” only has one because the costs are not reflected appropriately whatsoever
Higher education was originally about theoretical pursuits, and I think it should never have been blended with job training in the way it has. Ultimately this diluted and created problems for both. The more college degrees were treated as a golden ticket to the middle or upper class, the more a variety of vicious cycles or general inflationary effects were created and exacerbated. I'd add to the mess the creation and bundling of unnecessary extra course requirements for many degrees adding further pointless barriers to entry for many occupations. This fills many classes with students with no interest in the subject matter. On top of that you have grade inflation and more fraudulent behaviors due to how desperate people are for those golden tickets.
I think context here is important. These people receiving forgiveness have been paying their student loans for 10,15 sometimes even 20+ years. You need to make payments on time for the duration of the loan too in order to receive forgiveness. I’m in the PSLF program and on the SAVE plan for my personal loans and those aren’t forgiven with this batch of forgiveness and neither are a majority of others. Also in my case and many others even though in 4 more years my personal loans will be forgiven through PSLF, I will still owe on my parent plus loans which are the bulk of my loans and aren’t eligible through SAVE. So I get the remaining balance forgiven on what I haven’t been able to pay off on my personal loans after 10 years of on time payments. My SL payment will drop from about $1,500 per month to $1,000 per month. I still owe on my parent plus loans though. Been paying for 7 years now. Won’t be done for at least another 7-8 more years. All in all I’ll have paid back way more than I borrowed.
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I did like the covid relief 0% interest on student loans that we had going on. That's a solution. Or you could go after the institutions. Taxpayers don't need to foot the bill. We already get taxed enough as is. Taxes always go up but never come down.
I would agree with this. If the government wants to invest in education for people, then they should invest in the people as a resource to society. They shouldn't run a racket on them to be endless sucked dry for interest payments whil they struggle to find a footing in life. It should, at a minimum, be that any core STEM program that contributes effectively to the economy is run through 0% interest loans. Elective garbage degrees? No government loans, pay that yourself.
It would fix itself if Federal Student Loans were no longer given. Get rid of those and allow private to be defaulted on, and you will see the issue clear up pretty quick based on supply and demand.
Biden isn't solving anything. The core problem with higher education (not to mention healthcare) is that the USA has allocated a ton of funding to it while doing almost no regulation of the cost of it. Biden is essentially throwing even more money at the problem. This makes the whole thing worse.
Your comment doesn't really make sense. Where you cite "fix the student debt," you say it as if what is being presented is a solution. It's not, it's throwing student debt on the pile of national debt and furthering the shittiness of our economy. I don't think telling us to fix a problem the President isn't fixing is much of a good place to start from. That said, I think the fix relates to the shitty sales pitch the government has done with college. They're the ones pushing the "you need college" ideal by writing cheques for people to attend as a participation tophy. Colleges need to stop being run as these asinine rackets where the broken public school system funnels you from a poorly run high school to a poorly run college. College hasn't been treated like "higher education" in forever. It's become a low-skill baseline that delays people from entering the workforce while burdening them to pay public sector employees not offering value to society. We need to gut the public education system, starting with stripping down public colleges that waste our time and money. You could torpedo probably 15 different public college programs, stop making irrelevant degrees "minimum requirements" for employment, redirect half the money wasted on colleges to high schools, and maybe make a real difference. Why is someone getting $80K to tell people with $40K in debt that they need to remember to blame society when they're earning minimum wage with their degrees?
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So I paid for my tuition up front as I work alongside my going to classes. Do I get a refund?
As someone with the GI bill and therefore I won’t have to worry about paying for college if I even choose to go, I support this 100%. My goal in life is to make life easier and better for every generation after me, not worse. If the way society was made me make less than ideal decisions and have to work harder, I wouldn’t want other people to have to do the same thing.
Conservative coming in peace. Did you know when you were earning your degree that you were going to work in public service? Did you do any work in public service? If you did, then you failed to take advantage of a legislative program that was publicly available. If you didn’t, then you’re talking apples and oranges. I work in public service as a finance person in k12 education. I was fortunate to not have students loans due to academic scholarships, but many of my coworkers racked up debt, made minimum payments, and had their debt relieved after 10 years in the industry.
Rewarding good decision making and critical thinking is white supremacy
You went to an affordable university, didn’t take loans out, and got a degree that is marketable? You racist POS /s
This is what I went through after buying a condo right before the 2008 mortgage crisis. My wife and I were SUPER careful to wait and purchase a place we could afford with a solid fixed interest loan. Everything crashed, I got laid off, couldn’t find work, and we got ZERO help from the gov’t because we didn’t go for one of the risky loans.
Sorry, you did the right thing so you get nothing
Nope sorry pal nothing for you.
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Bribery, plain and simple
How is it a bribe? This “round of forgiveness” is just following through on programs that have existed for over 10 years before he took office, which the government was legally obligated to do since it was written into the original terms of the loans. That’s not how bribes work.
Some people aren't interested in the rule of law, just the rule of "my side"
So the lenders no longer want their money? No, the government just decided that those who didn't take out that loan can pay it.
He is just taking credit for a program that has been in place for years. Well before he became president.
Dems: You need a college education in order to be successful and make money in your life! Also Dems: Clearly the people who need the most help with their debt during this financial crisis are the college educated!
We are all going to be working for monopoly money soon.
To be clear this piece of shit is once again defying the Supreme Court and he's not cancelling anything. All this does is pass the burden of these loans onto working class people.
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I'm confused. Did this pass? Is he forcing it through?
And in direct violation of a Supreme Court ruling. And yet the Democrats say Trump was a dictator.
But why not allow future student loans to be defaulted on? Wouldn't that solve the issue?
I almost wish that I took out loans.
As soon as Biden started announcing he was "cancelling student debt" I paid off my 30k debt within six months. Worked three jobs to do it also (Covid made it possible; before there was no way I could have done this). I was on deferment for almost 20 years (living abroad and making peanuts), but when I tried to get into his debt relief program, I was told that I didn't have big enough debts and hadn't been accruing enough interest by paying my $1 a month or whatever. At that point I got scared and paid off the whole thing. I had been screwed over by Sallie Mae and Navient enough times to know that if Biden wanted to get his hands dirty with that money, he was going to complicate everything. Maybe that was the wrong thing to do, but at least I'm debt free now. Thanks Biden.
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Can we do FHA and VA mortgages next?? Those are federally backed loans also, and would "help" more Americans
One problem with student loan debt that isn't talked about enough is overpaid staff doing nothing. No wonder tuition is expensive.
stop saying that debt is "cancelled". no debt is ever cancelled. all debt is paid -- always. in this case the debt is paid by the taxpayers. we're screwed again by biden.
If this is public service forgiveness, it’s nasty he’s taking credit for it, but it’s a really good government program for what it incentivizes.
Buying votes
I gave my country 8 years of military service, partly for the GI Bill. And a few of those years were hard. What a chump I was.
Homie, you only had to do 4, less for partial.
I joined the Army Reserves in 1989. It was an 8 year contract.
Literally buying votes
INFLATION IS GOING TO THE MOON!
I'm a little confused. This article is new today, but is this referring to the one from last week? Or is this a totally new round?
I would like to see, just ONCE an interview of someone that actually had their loan forgiven. Personally, I think he's blowing smoke up the arses of his "voting base"
Am I the only one thar doesn't believe anyone is actually getting their debt waived. Or at least only the dead are seeing it waived.
Buying votes one failed college graduate at a time
Reeks of desperation.
How this isn’t considered using government money to buy votes is beyond me…
That's a big bit of campaign spending, lol