Biden will announce new student loan forgiveness plan under the Higher Education Act next week

[Elim Garak]

The Biden administration is developing a new student loan forgiveness plan under the Higher Education Act. This plan will be provide targeted relief to several groups of borrowers including those who have experienced negative amortization (balance increases due to interest accrual, even while in repayment), borrowers who have had loans for more than two decades, and those unable to repay their student loans due to hardship.

The Education Department completed key steps of the negotiated rulemaking process earlier this spring to create regulations governing the new program. A rulemaking committee reached consensus on core elements of the student loan forgiveness plan, particularly for hardship-based forgiveness, which increases the chances that these features will make it into the final plan.

Biden is set to formally announce the plan next week, according to reports. The plan must then go through one more round of public comments before the regulations become finalized. Some observers believe the loan forgiveness plan could become available to borrowers by this summer or fall.

Biden’s next student loan forgiveness plan is widely expected to be challenged in court. His first debt relief program never got off the ground, as litigation resulted in temporary injunctions which blocked relief. The legal dispute eventually made its way to the Supreme Court, where the conservative majority struck down the program as an overreach that exceeded Congressional authorization.

Administration officials hope that Biden’s latest loan forgiveness effort will have a better chance of success. The new program is being established under a completely different legal authority which expressly authorizes the Education Department to cancel student debt. However, the challengers are expected to argue that this authority is narrow, and does not authorize mass student loan forgiveness.

Last month, a coalition of Republican-led states filed a lawsuit in Kansas seeking to block the new SAVE plan. A court has not issued any ruling at this time.

 

[gho3st]

The Biden administration is developing a new student loan forgiveness plan under the Higher Education Act. This plan will be provide targeted relief to several groups of borrowers including those who have experienced negative amortization (balance increases due to interest accrual, even while in repayment), borrowers who have had loans for more than two decades, and those unable to repay their student loans due to hardship.

The Education Department completed key steps of the negotiated rulemaking process earlier this spring to create regulations governing the new program. A rulemaking committee reached consensus on core elements of the student loan forgiveness plan, particularly for hardship-based forgiveness, which increases the chances that these features will make it into the final plan.

Biden is set to formally announce the plan next week, according to reports. The plan must then go through one more round of public comments before the regulations become finalized. Some observers believe the loan forgiveness plan could become available to borrowers by this summer or fall.

Biden’s next student loan forgiveness plan is widely expected to be challenged in court. His first debt relief program never got off the ground, as litigation resulted in temporary injunctions which blocked relief. The legal dispute eventually made its way to the Supreme Court, where the conservative majority struck down the program as an overreach that exceeded Congressional authorization.

Administration officials hope that Biden’s latest loan forgiveness effort will have a better chance of success. The new program is being established under a completely different legal authority which expressly authorizes the Education Department to cancel student debt. However, the challengers are expected to argue that this authority is narrow, and does not authorize mass student loan forgiveness.

Last month, a coalition of Republican-led states filed a lawsuit in Kansas seeking to block the new SAVE plan. A court has not issued any ruling at this time.

Dem nikkas just givin out money...."money" is a farce

 

[Thavoiceofthevoiceless]

For the majority of people including younger ones (whose votes he needs), don't get your hopes up because the new qualifications aren't for you.

This one is specifically going to be crafted and tailored to maneuver any potential pitfalls and lawsuits like the public service ones he's been doing.

 

[1 other person]

Fool me once....

 

[Chrishaune]

Dem nikkas just givin out money...."money" is a farce

They are getting ready to introduce the digital dollar.
People thinking they are actually giving out financial freedom are about to find out.

 

[gho3st]

They are getting ready to introduce the digital dollar.
People thinking they are actually giving out financial freedom are about to find out.

You think they really are? Were the fck is the money coming from?

 

[Matt504]

Forgive some damn medical bills

 

[Curioser]

Not buying it, he didn’t come through when it counted. The other forgiveness was trash…

 

[Primetime21]

Whatever happened to:

Biden’s plans to address student loan debt will alleviate student debt burdens by:

• Forgiving all undergraduate tuition-related federal student debt from two- and four-year public colleges for debt-holders earning up to $125,000. This will also apply to individuals holding federal student loans for tuition from private HBCUs and MSIs.

 

[Thavoiceofthevoiceless]

Not buying it, he didn’t come through when it counted. The other forgiveness was trash…

Because it was too broad and was always going to get thrown out by the courts. They would have better off just stripping it down from the beginning like they’re doing now.

It was a smart political move on their part.

 

[CouldntBeMeTho]

How many times is he going to go to this well? Gotta make those students forget about Palestine somehow

 

[Elim Garak]

I remember when the courts shot the original plan down they said they would try another way. Thecoli said they are full of shyt. They try another way and it's more goal post moving by thecoli.

 

[Yzak]

Whatever happened to:

You're not supposed to remember that

 

[dza]

He’s gonna do everything except stop funding the genocide in Gaza

 

[Thavoiceofthevoiceless]

I remember when the courts shot the original plan down they said they would try another way. Thecoli said they are full of shyt. They try another way and it's more goal post moving by thecoli.

It kind of is full of shyt because it is a stripped down version of the original plan and a lot of people are going to be left out.

There’s no moving goalpost about it.