$168.5 billion and counting
July 19, 2024 7:28 AM Subscribe
Biden administration cancels another $1.2B in student debt (Axios). President Biden’s Complete Track Record on Student Loan Forgiveness: "The Biden administration has now cumulatively forgiven $168.5 billion in federal student loan debt for 4.75 million borrowers."
Today's statement from President Biden noted that, in addition to extensive efforts to reduce the burden of student debt, his administration has also made the largest increases to Pell grants in over a decade, fixed Income-Driven Repayment, and prosecuted for-profit colleges that took advantage of students. Biden: "I will never stop working to make higher education affordable – no matter how many times Republican elected officials try to stop us."
Today's statement from President Biden noted that, in addition to extensive efforts to reduce the burden of student debt, his administration has also made the largest increases to Pell grants in over a decade, fixed Income-Driven Repayment, and prosecuted for-profit colleges that took advantage of students. Biden: "I will never stop working to make higher education affordable – no matter how many times Republican elected officials try to stop us."
And in response to that ruling, the Administration has put 8 million loans into interest free forbearance to protect the lessees.
posted by NoxAeternum at 7:44 AM on July 19 [32 favorites]
posted by NoxAeternum at 7:44 AM on July 19 [32 favorites]
Last summer I got my loans forgiven via a Biden update in eligibility for nonprofit workers. I've worked in nonprofits for over 10 years but wouldn't have qualified under the old program because I was on the wrong kind of payment plan. It no longer feels like the very idea of "savings" is a cruel pointless joke.
posted by showbiz_liz at 7:46 AM on July 19 [49 favorites]
posted by showbiz_liz at 7:46 AM on July 19 [49 favorites]
As I understand it, that Reuters headline is a bit overstated--the 8th Circuit blocked the SAVE income-driven repayment plan, while the $1.2b is related to Public Service Loan Forgiveness.
Around 900,000 people have received PSLF loan forgiveness. Before Biden was president, the number was 7,000.
posted by box at 7:48 AM on July 19 [36 favorites]
Around 900,000 people have received PSLF loan forgiveness. Before Biden was president, the number was 7,000.
posted by box at 7:48 AM on July 19 [36 favorites]
showbiz_liz the exact same thing happened to me. In addition to the actual, life-changing financial ramifications, it also lifted a mental weight that I didn't really even know was there until it was gone. A constant low-level hum of stress that has been pulsing in my ear for a decade just blinked off with a single email. Fucking incredible.
posted by saladin at 7:49 AM on July 19 [39 favorites]
posted by saladin at 7:49 AM on July 19 [39 favorites]
With ever increasing rent and food prices and a chronically ill partner out of work, the SAVE program has been a godsend. Things will get pretty difficult on my end if that goes away.
posted by The Great Big Mulp at 7:50 AM on July 19 [12 favorites]
posted by The Great Big Mulp at 7:50 AM on July 19 [12 favorites]
If Biden is going to step down (the drumbeat is deafening from the fucking media) he should go out with a slew of actions exactly like this.
posted by bluesky43 at 7:57 AM on July 19 [26 favorites]
posted by bluesky43 at 7:57 AM on July 19 [26 favorites]
Awesome. - such good news. But maybe we should selfishly start saying the Biden/Harris administration when it is positive news…..just saying
I woke up this morning feeling like we can do this. Trump is beatable. We can get off the track before hitting the washed out bridge.
posted by inflatablekiwi at 8:00 AM on July 19 [25 favorites]
I woke up this morning feeling like we can do this. Trump is beatable. We can get off the track before hitting the washed out bridge.
posted by inflatablekiwi at 8:00 AM on July 19 [25 favorites]
we should selfishly start saying the Biden/Harris administration
every chance we get. loudly.
posted by supermedusa at 8:27 AM on July 19 [12 favorites]
every chance we get. loudly.
posted by supermedusa at 8:27 AM on July 19 [12 favorites]
Is there any hope for students who originally had govt. loans, but then consolidated them with a non-govt. lender? Or, are they hosed?
posted by Thorzdad at 9:01 AM on July 19
posted by Thorzdad at 9:01 AM on July 19
My wife got her loans settled via PSLF the other year after working for 15+ years at a Title I school and when the letter arrived she and I were in shock/disbelief. This thing that had been hanging over us for so long was gone?
Both of our native instincts was "this is a scam, right?", but we went and checked her loan site and boom - all zeroes. What a relief.
And for anyone dealing with folks complaining that "I went into a trade and nobody paid for me" or complaints of that ilk. The debt forgiveness programs have also targeted loans for accredited trade schools as well.
posted by drewbage1847 at 9:07 AM on July 19 [19 favorites]
Both of our native instincts was "this is a scam, right?", but we went and checked her loan site and boom - all zeroes. What a relief.
And for anyone dealing with folks complaining that "I went into a trade and nobody paid for me" or complaints of that ilk. The debt forgiveness programs have also targeted loans for accredited trade schools as well.
posted by drewbage1847 at 9:07 AM on July 19 [19 favorites]
In addition to this, the Biden/Harris administration has worked on making it more straightforward to erase student loan debt in bankruptcy, which for the longest time the common wisdom (and the law) had made nigh impossible.
posted by idb at 9:18 AM on July 19 [20 favorites]
posted by idb at 9:18 AM on July 19 [20 favorites]
And in more financial protection news, the CFPB has announced that apps that promise "access" to paychecks early are payday loans and subject to regulation as such.
posted by NoxAeternum at 9:21 AM on July 19 [20 favorites]
posted by NoxAeternum at 9:21 AM on July 19 [20 favorites]
Come on Biden/Harris let's get four new justices added to the court ASAP. 13 districts, 13 judges let's go
posted by thecaddy at 9:24 AM on July 19 [19 favorites]
posted by thecaddy at 9:24 AM on July 19 [19 favorites]
Is there any hope for students who originally had govt. loans, but then consolidated them with a non-govt. lender? Or, are they hosed?
Couldn't they re-consolidate under a federal direct loan?
posted by mittens at 9:34 AM on July 19 [2 favorites]
Couldn't they re-consolidate under a federal direct loan?
posted by mittens at 9:34 AM on July 19 [2 favorites]
Pasting this from Balloon Juice in case there's still people out of the loop:
"President Biden’s campaign chair came out this morning saying that he is staying in the race. So if there was any wavering (and I don’t believe for a second there was, it was all media driven by unnamed source whisper campaigns) that question has been answered."
posted by SoberHighland at 10:08 AM on July 19 [6 favorites]
"President Biden’s campaign chair came out this morning saying that he is staying in the race. So if there was any wavering (and I don’t believe for a second there was, it was all media driven by unnamed source whisper campaigns) that question has been answered."
posted by SoberHighland at 10:08 AM on July 19 [6 favorites]
Come on Biden/Harris let's get four new justices added to the court ASAP. 13 districts, 13 judges let's go
Definitely not a thing he can do.
posted by 922257033c4a0f3cecdbd819a46d626999d1af4a at 10:13 AM on July 19 [2 favorites]
Definitely not a thing he can do.
posted by 922257033c4a0f3cecdbd819a46d626999d1af4a at 10:13 AM on July 19 [2 favorites]
Most of my loans are trapped in some horrible texas organization that basically dodges all federal aid and relief. I think some of my minor federal loans were forgiven or cancelled or otherwise I ain't payin em, but those were also the ones easy to put off paying. The main bulk of my loans are through some rats and I'll just be repaying them until I die lol.
posted by GoblinHoney at 10:17 AM on July 19 [1 favorite]
posted by GoblinHoney at 10:17 AM on July 19 [1 favorite]
GoblinHoney, I dream of a day when some progressive organization like RIP Medical Debt/Undue Medical Debt comes along where I can donate or invest to help buy and then get rid of student loan debt. I'd like to think it's only a matter of time. In the meantime, I'm so sorry you have that huge burden. I don't know if it helps any, but I am doing what I can to build a society that makes things easier for you and other folks in the same boat.
posted by kristi at 10:30 AM on July 19 [3 favorites]
posted by kristi at 10:30 AM on July 19 [3 favorites]
Definitely not a thing he can do.
Not according to the Green Lantern theory of the presidency
posted by pullayup at 10:54 AM on July 19 [2 favorites]
Not according to the Green Lantern theory of the presidency
posted by pullayup at 10:54 AM on July 19 [2 favorites]
I feel bad for Biden. He's actually followed through on so much and all people do is crap on him.
posted by grumpybear69 at 11:05 AM on July 19 [29 favorites]
posted by grumpybear69 at 11:05 AM on July 19 [29 favorites]
I think part of the issue I have with Biden loan forgiveness programs is they have no one checking to make sure they’re actually happening or to challenge if they’re not.
For example: I had my loans forgiven, and they weren’t supposed to give me anymore. But my school did anyway, using the original master promissory note on file and bundling it with my Pell grant money. So now I have two loans that aren’t supposed to exist, that I told them I didn’t want, but now I owe on. And there’s literally nowhere I can go to get it handled.
posted by corb at 11:06 AM on July 19 [3 favorites]
For example: I had my loans forgiven, and they weren’t supposed to give me anymore. But my school did anyway, using the original master promissory note on file and bundling it with my Pell grant money. So now I have two loans that aren’t supposed to exist, that I told them I didn’t want, but now I owe on. And there’s literally nowhere I can go to get it handled.
posted by corb at 11:06 AM on July 19 [3 favorites]
corb, if you happen to have a Dem House rep or Senator, can you call their constituent services person and ask for help?
posted by joannemerriam at 11:08 AM on July 19 [3 favorites]
posted by joannemerriam at 11:08 AM on July 19 [3 favorites]
Is there any hope for students who originally had govt. loans, but then consolidated them with a non-govt. lender? Or, are they hosed?
I’m 99% sure you’re hosed. My wife applied for PSLF during the Trump administration and was turned down because she was unknowingly on the wrong kind of payment plan. 99% of applicants were being turned down, so we figured it would never come through for us and consolidated with a private lender for a much lower interest rate. Two years later, Biden was president and made the whole process much easier, but now she can’t reapply because the loan is privately held. I don’t even want to calculate how much that mistake is costing us.
posted by Pater Aletheias at 11:12 AM on July 19 [9 favorites]
I’m 99% sure you’re hosed. My wife applied for PSLF during the Trump administration and was turned down because she was unknowingly on the wrong kind of payment plan. 99% of applicants were being turned down, so we figured it would never come through for us and consolidated with a private lender for a much lower interest rate. Two years later, Biden was president and made the whole process much easier, but now she can’t reapply because the loan is privately held. I don’t even want to calculate how much that mistake is costing us.
posted by Pater Aletheias at 11:12 AM on July 19 [9 favorites]
Good on him for the humanity, and calling out the Republicans. From the safety net to corporate greed to the fascism of politics, the Republicans are largely the reason we can't have nice things. What if someone "'Undeserving'" gets something for free?!?¿‽¡ That's a crime against humanity, no matter how many genuinely needy people die!
posted by Jacen at 11:45 AM on July 19 [5 favorites]
posted by Jacen at 11:45 AM on July 19 [5 favorites]
Is there any hope for students who originally had govt. loans, but then consolidated them with a non-govt. lender? Or, are they hosed?
My wife did this, but is (or was) in talks to get into SAVE, which seems (or seemed) transformative. YMMV: I don't pretend to understand this system, or what we'll eventually be able to get.
posted by GeorgeBickham at 12:13 PM on July 19
My wife did this, but is (or was) in talks to get into SAVE, which seems (or seemed) transformative. YMMV: I don't pretend to understand this system, or what we'll eventually be able to get.
posted by GeorgeBickham at 12:13 PM on July 19
(also, Anita Hill, 1994 Crime Bill, Patriot Act, etm)
To me, progress means moving the needle in the right direction in your personal trajectory and in the country's trajectory.
Biden has made progress by both metrics.
posted by ichomp at 1:13 PM on July 19 [12 favorites]
To me, progress means moving the needle in the right direction in your personal trajectory and in the country's trajectory.
Biden has made progress by both metrics.
posted by ichomp at 1:13 PM on July 19 [12 favorites]
My loans were forgiven (combo of PLSF and paying for 25 years) and to apply for PLSF I was told I had to consolidate my loans (mistakenly). So immediately after I got the forgiveness notification I got another notification that my consolidation on my original loans 'was accepted ) ugh what a crap phrase. And so now while they were forgiven, they were reinstated - and Mohela (my servicer and on wholes behalf the AG of Missouri - fuck that guy) says I owe them the full amount.
So thats fun....
PS - I have a claim into the Federal Student Loan office saying WTF, but little hope.
posted by WatTylerJr at 3:01 PM on July 19 [3 favorites]
So thats fun....
PS - I have a claim into the Federal Student Loan office saying WTF, but little hope.
posted by WatTylerJr at 3:01 PM on July 19 [3 favorites]
Well, you just missed an historic opportunity to do just that (expired June 30th, 2024 though): https://www.ed.gov/news/press-releases/biden-harris-administration-allows-borrowers-more-time-consolidate-loans-get-credit-progress-toward-loan-forgiveness-programs
If I’m reading that right, that only works if you had a federally guaranteed loan with a private lender—you’ve got to consolidate it with the government and then apply for forgiveness. I was able to get my loan forgiven last year that way. But that’s a different situation than taking what was a government loan and consolidating it privately. Once that debt belongs to a private lender, there’s no more federal involvement and the government can’t forgive it because it doesn’t belong to them. The government can consolidate a loan that they are already backing, but if it’s 100% private, that door is closed.
posted by Pater Aletheias at 7:54 PM on July 19
If I’m reading that right, that only works if you had a federally guaranteed loan with a private lender—you’ve got to consolidate it with the government and then apply for forgiveness. I was able to get my loan forgiven last year that way. But that’s a different situation than taking what was a government loan and consolidating it privately. Once that debt belongs to a private lender, there’s no more federal involvement and the government can’t forgive it because it doesn’t belong to them. The government can consolidate a loan that they are already backing, but if it’s 100% private, that door is closed.
posted by Pater Aletheias at 7:54 PM on July 19
Mod note: One deleted. Please let this thread be about the posted topic rather than hijacking it into a general anti-Biden debate. (IOW, if your impulse is to disrupt the conversation about student loans because you'd rather talk about something else wrt Biden, please don't. Just join another thread already underway. (edit: and another deleted for violent fantasizing.)
posted by taz (staff) at 10:58 PM on July 19 [3 favorites]
posted by taz (staff) at 10:58 PM on July 19 [3 favorites]
I have a claim into the Federal Student Loan office saying WTF, but little hope.
That may be your BEST hope. It’s the approach I took to force MOHELA to finally admit that if I was eligible for PSLF forgiveness, my wife - who was also PSLF eligible - should have “her” half of our consolidated loan credited as well. MOHELA kept insisting first that she didn’t exist (but owed money?) and next that she existed but her prior decade+ of eligible payments didn’t count. Dept of Ed got this sorted. We’re still in a bit of disbelief and I refuse to delete the email showing our balance as zero.
posted by caution live frogs at 5:34 AM on July 20 [3 favorites]
That may be your BEST hope. It’s the approach I took to force MOHELA to finally admit that if I was eligible for PSLF forgiveness, my wife - who was also PSLF eligible - should have “her” half of our consolidated loan credited as well. MOHELA kept insisting first that she didn’t exist (but owed money?) and next that she existed but her prior decade+ of eligible payments didn’t count. Dept of Ed got this sorted. We’re still in a bit of disbelief and I refuse to delete the email showing our balance as zero.
posted by caution live frogs at 5:34 AM on July 20 [3 favorites]
Caution live frogs. I still cannot believe they sent me the congrats zero balance note and then completely disregarded it. Well. I guess I really con believe it but it’s be nice if they accepted their own damn communication to me. Oh well…
posted by WatTylerJr at 3:42 PM on July 20
posted by WatTylerJr at 3:42 PM on July 20
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posted by thecincinnatikid at 7:38 AM on July 19 [7 favorites]