President Biden came out fighting against the Supreme Court turning thumbs down on his student loan forgiveness program…
He is trying to get ahead of possible political and economic problems that might come with the resumption of student loan payments after three years and the ‘NO” on the forgivness part….
This is NOT over one would suspect…..
The decision immediately upends debt relief that the Education Department approved last fall for 16 million borrowers and the pending applications of millions of additional borrowers.
It also creates fresh political challenges for the White House, which will face pressure from progressives to make good on Biden’s promised loan forgiveness despite the legal setback….
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Progressives now want the administration to shift its focus to developing another way to cancel student debt that relies on a different law, such as the secretary of Education’s powers to compromise and settle debts under the Higher Education Act.
“This fight is not over,” Sen. Elizabeth Warren (D-Mass.) said in a statement after the ruling. “The President has more tools to cancel student debt — and he must use them.”
Senate Majority Leader Chuck Schumer criticized the ruling on Twitter as “disappointing and cruel” but added that the administration “has remaining legal routes to provide broad-based student debt cancellation.”
Below is the program he has the Education Dept ready to go with….
The Education Department on Tuesday released long-awaited details on a piece of President Biden’s student loan debt plan that would enable millions of borrowers to cut their monthly federal payments by more than half — perhaps the most consequential component of the president’s broader initiative to make the loan system more manageable.
The Education Department’s proposed rules would revise one of its existing income-driven repayment plans — known as REPAYE — in which borrowers’ monthly payments are tied to their income and family size, and after a set number of years, any remaining debt is forgiven.
Unlike Mr. Biden’s one-time initiative to cancel up to $20,000 in federal debt, which has been stymied by legal challenges, the new repayment plan would become a permanent fixture of the student loan infrastructure and apply to current and future borrowers.
The latest iteration of REPAYE will be the most affordable of the five existing plans, the first of which became available in 1995. Like the others, it doesn’t do anything to slow the rising cost of higher education, instead providing a new way to cope.
A significant and rising share of borrowers is already enrolled in income-driven repayment plans, which are intended to ease the pressure when debtors can’t afford their monthly bill. Roughly 8.5 million federal student loan borrowers are enrolled in existing plans, representing about a third of all borrowers in repayment, up from 1.6 million, or 10 percent, in 2013.
It’s still unclear when the new plan will be up and running: The proposal will be subject to public comment for 30 days, and the administration will take that feedback into account before the rule becomes final later this year.
Here’s how it’s expected to work, with updates to follow as we learn more.
Who is eligible for the new repayment plan?
Borrowers with federal undergraduate loans or graduate loans.
But undergraduate borrowers are eligible for lower payments than graduate borrowers.
Who is excluded?
Parents who borrowed to pay for their children’s schooling using Parent PLUS loans cannot enroll in the new plan.
That means if parent borrowers cannot afford to make their payments, they generally have access only to the most expensive income-driven repayment plan — known as income-contingent repayment — which requires borrowers to pay 20 percent of their discretionary income for 25 years; anything remaining is forgiven.
CSPAN
@cspan
Q: “Why did you give millions of borrowers false hope?”
Biden: “I didn’t give barrowers false hope, but the Republicans snatched away the hope that they were given and it’s real.”
Q: “Did you overstep your authority?”
Biden: “I think the Court misinterpreted the Constitution.”
Ok…….
BDog maybe on to something……
While the Ed Department has a program on hold ?
Biden is AGAIN under YUGE pressure to get around the High Court and KEEP the student loan forgiveness…….
So?
Biden ISZ DOING a Trump
Changing FORWARD……
Making HOPE