Biden cancels $10,000 in federal student loan debt for most borrowers

[Beachnutt]

CNBC
President Joe Biden announced he will forgive $10,000 in federal student debt for most borrowers, delivering financial relief to millions of Americans.
snip
Biden cancels $10,000 in federal student loan debt for most borrowers
Biden cancels $10,000 in federal student loan debt for most borrowers

https://www.cnbc.com/2022/08/24/biden-expected-to-cancel-10000-in-federal-student-loan-debt-for-most-borrowers.html

[Johnny2X2X]

1. This cancels over 25% of all student debt

That's absolutely no joke. The $1.7T Student loan crisis just became the $1.25T student loan crisis.

And this took 16 million borrows balances to $0. It will reduce the monthly payments of millions more.

[Celerity]

2. up to $20,000 if you had Pell Grants

[Probatim]

3. I'm going to have to do some digging, but I assume

forgiveness is for federal loans and not those issued by private lenders.

While I think this is a great policy for the entire economy, it likely won't help me at all.

[AkFemDem]

4. Yes, federal direct loans including Parents Plus and Grad.

[boston bean]

10. I took out parents plus. Still owe. But I don't see a reduction.

[AkFemDem]

32. No one has had it forgiven yet, it will take until December

[Amishman]

16. The Parent Plus loans were usually high interest, and many refinanced when rates are low

I'm assuming anyone who refinanced are out of luck, as their loan is no longer federally subsidized.

Also if parent plus loans are included, it gets interesting. The parent was technically the primary borrower, would that be a separate 10k cap?

[OneGrassRoot]

19. I sure hope so. n/t

[Farmer-Rick]

25. Yup, that's how the CON works

To refinance and get better interest rates then what our government was allowing for college loans, you would have to convert your loans to a for profit bank.

Now, you have lower interest rates at the for profit bank but you don't get the benefits of a federal overpriced loan.

They get you coming and going. It's how capitalism works for the filthy rich lender.

[Amishman]

30. I hope some accommodation is made for those who re-fi'ed

Because as it stands now, they're effectively being punished for being financially literate and taking initiative.

[Chainfire]

5. What a Democratic thing to do.

[Stinky The Clown]

6. I am surprised this has so few recs

This is another BFD

[Shrek]

11. I'm conflicted

I still owe about $8500 on my Parent PLUS loan so this would retire that debt completely.

But I willingly incurred the obligation fully intending to repay it, so this doesn't feel right.

[Scrivener7]

14. I think you are kind of awesome for this, but as a taxpayer I want you to wipe out

your debt and help the economy help the rest of us.

[The Bopper]

31. I doubt

You’re serious. Unless you’re really well off, you’ve more than paid back your original debt. If they would call it a tax cut for students with loans, you wouldn’t be trolling this.

[qazplm135]

23. heck I got mocked by a voluminous poster on here

for even suggesting that Biden had the legal authority to cancel any loans at all.

My law degree was questioned even as I laid out the clear legal authority.

Some folks on here don't like this act by Biden today.

This is an area where Biden gets hit from left, right and even middle.

[chuluma]

7. Titles like that are misleading, minimizing the forgiven amount

A huge number of students will have $20,000 forgiven.
So I think the media and everyone else should frame it as 10,000 - $20,000 forgiveness.

[live love laugh]

21. Great point.

[Blue Owl]

8. It's time those of us who aren't millionaires or billionaires catch a freakin' break, for once...

[D_Master81]

9. Will people get a 1099-C now?

When most debt gets canceled people end up surprised at tax time to get a 1099 showing the amount as income to declare on their taxes. Wonder if that will happen here or it’s a free and clear forgiveness?

[Mosby]

20. It should count as income.

Why wouldn't it?

[SickOfTheOnePct]

24. Agree 100% n/t

[Farmer-Rick]

26. Because it is a con, a scam, a swindle, a rigged system.

Why does no other developed nation offer mostly only loans to their college students? Funny how most countries don't follow in the path the US has forced onto their college kids.

Because no average person can afford tuition at most US colleges. So, instead of helping students, our so called "democratic" nation offers mortgage sized loans with huge interest rates to poor students.

The student doesn't have money, so they offer a loan that's a bet on the kids future income. And guess what? There are very few jobs that pay enough to pay off that ever compounding interest they saddle students with.

A $60,000 loan turns into a $120,000 loan after 7 years of a economic crash and a pandemic, even if the student paid every month.

And the gods forbid a disabled person tried to better their circumstances by getting an education. It gets even worse for them.

[samnsara]

12. how can pell grants be forgiven? that part confuses me...

[SickOfTheOnePct]

15. It doesn't say Pell grants are forgiven

Last edited Wed Aug 24, 2022, 02:36 PM - Edit history (3)

There is nothing to forgive, as they’re grants. But those with student loan debt who also received Pell grants are eligible for $20k loan forgiveness v $10k

[Farmer-Rick]

27. Pell grants? Are they still around?

Don't you have to be mostly homeless, starving or bankrupt....or your parents are... to qualify?

They offer grants of up to $6,495. Does that even cover tuition at most colleges? Maybe it covers books but certainly not room and board. How cheap is America?

Most grants go to students whose families make about $30,000. Can you even rent a place to live in at $30,000 for an average family with 3.13 people in it?

Wow, just wow, look how stingy America has gotten.

But we do still have Pell grants, so there's something.

[Sympthsical]

13. LOL, the student loan website is crashed

I tried to log in to get niece and nephew information so they have it all together, and that thing is timing out like the dickens.

[iemanja]

17. Amazing how little interest this event has generated on DU

Especially considering the many dozens of threads we have had about Biden not cancelling debt.

[Johnny2X2X]

18. His plan is radical!

This is amazing! I don’t think people get how dramatic his changes to repayment options are. Capping payments at 5% of discretionary income down from 10% halves the payments for the worst horror stories. This is unreal!

[Dopers_Greed]

22. Great news!

I would have preferred cancelling ALL student load debt, but this is still a massive victory for us.

Thank you President Biden!

[Farmer-Rick]

28. That will clear 9 million borrowers

That still leaves 36 million and their families in debt. But it's a start.

[Johnny2X2X]

29. The repayment changes

The changes to income based repayment basically end the student debt crisis. They're the real win here. Glad people are focusing on the forgiveness, because the repayment changes are the real meat of what this does.