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President Biden: student loan borrowers enrolled in SAVE “who took out less than $12,000 in loans and have been in repayment for 10 years will get their remaining student debt cancelled immediately" (www.whitehouse.gov)

submitted 10 months ago by 0x815@feddit.de to c/usnews@beehaw.org

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"Borrowers who may be eligible for early debt cancellation to sign up for the SAVE plan at studentaid.gov," a statement by the White House says.

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[–] Midnitte@beehaw.org 0 points 10 months ago (1 children)

I wonder why that limit, and if they'll raise it...

[–] HumbleFlamingo@beehaw.org 0 points 10 months ago (1 children)

They're doing it in small chunks to make it harder for the Republican's to block it. I think the total is above $120 billion forgiven at this point out of the $400 billion target. Couple hundred million here, few billion there. They've been doing a lot better than most people understand at getting it done as best they can.

[–] Rentlar@beehaw.org 0 points 10 months ago* (last edited 10 months ago) (1 children)

My uneducated guess is that banking corps getting "harmed" by the fact they can't suck money out of their borrowers will have to spend more effort putting each order through the courts.

At the very least, the more times that Biden's student loan forgiveness plan is blocked like this, it will get it into voters' heads that it's not the President and Democratic party's failure to act but co-ordinated obstruction by Republicans and the financial institutions.

[–] bedrooms@kbin.social 0 points 10 months ago (1 children)

But, this is the opposite of what it should be. Those who needed less money and were able to pay for the last 10 years straight are likely in the wealthier class.

[–] Midnitte@beehaw.org 1 points 10 months ago

This was my thought as well, but it's also important that the rule is more generous then the title let's on.

With each additional $1,000 of debt, the window for forgiveness increases by one year. For example, a student who took out $13,000 in loans will now have their debts erased if they've been in repayment for 11 years — or in 12 years for those who borrowed $14,000 and so on.

So... you can't be in repayment for eternity, which is a great change. Now we just need to shorten that time frame to 0.

As the other commenter pointed out, there's a specific political party hamstringing these efforts that need to be voted out.