Student Loan Crisis!

[Kalel]

Student Loans: DOJ Says Overruling Biden’s Forgiveness Could Lead to Lawsuits Over ‘Virtually All Federal Action’

The Department of Justice predicts "startling implications."

www.gobankingrates.com

"If the Supreme Court quashes this particular cancellation program and rules in favor of the plaintiffs in the two cases it is hearing in February, it could have “startling implications” for future claims, according to the filing.

“Virtually all federal action — from law enforcement to collecting taxes to managing property — has some side effect on government finances,” the filing read. “If such side effects were enough to stand, then every state would have the right to challenge almost any federal policy.”

“(B)anks could sue anyone who causes financial harm to their borrowers, credit-card companies could sue anyone who causes financial harm to their customers, and governments could sue anyone who causes financial harm to their taxpayers,” it adds.

 

[Kalel]

not getting the funds or the people needed to help process the extra incoming workload that you can't even start on yet cause it's put on hold... this scenario sounds very familiar.

Your Student Loan Forgiveness Is Getting Delayed, And It May Get Worse

Borrowers are contending with delayed student loan forgiveness on a number of fronts as the Biden administration works to simultaneously implement multiple student loan debt relief initiatives. The problems may only get worse in the coming months.

www.forbes.com

 

[Veritable Quandry]

Yep. I am waiting to find out about my PSLF form, which I submitted before October and they still have not processed. I don't even know if they received it.

 

[Lexxi]

I got an email 11/23/22 saying my forgiveness was approved but on hold due to lawsuits. Then I got an email 12/13/22 saying my request was on hold and not yet approved or denied due to the lawsuits.

 

[Aribeth Zelin]

I got one saying I'm approved but its on hold because of the legal challenges.

 

[Kalel]

I know i should feel bad cause people are losing thier jobs due to the pause....

A major student-loan company just laid off over 500 employees due to lack of work from Biden's stalled debt relief

Nelnet just laid off 560 employees for the second time during the student-loan payment pause, citing lack of work due to Biden's debt relief.

www.businessinsider.com

 

[Free]

Of possible, additional concern is the use of the topic for spam runs.

 

[Kalel]

Dam bots...

IT's very likely if this doesn't go though young people will lose trust in the system and maybe refrain from voting.

https://www.theguardian.com/commentisfree/2023/may/23/payment-pause-on-student-loans-coming-to-an-end-for-millions-of-us-borrowers-arwa-mahdawi

 

[Casey Pelous]

Of possible, additional concern is the use of the topic for spam runs.

I guess this crisis will affect the whole educational system. Indeed, it will affect the labor market in the future since the potential specialists just simply can't afford to pay their tuition fees.

 

[Free]

Spam cover.

 

[Kalel]

supreme court ruled against biden. The crisis and confusion is expected to continue. repayment will come back in october..

Biden is trying to come up with a plan B...

https://www.nytimes.com/live/2023/06/30/us/student-loans-supreme-court-biden

Student debt: White House faces backlash for restarting interest on loans

The White House is facing backlash about its decision to reactivate interest for student loans as part of its “on-ramp” repayment program, which progressives and advocates argue isn’t enough to hel…

thehill.com

 

[Khamon]

I guess this crisis will affect the whole educational system. Indeed, it will affect the labor market in the future since the potential specialists just simply can't afford to pay their tuition fees.

To a point but there are funding sources available for those willing and able to acquire them. Seventy percent of the students in the college where I work have full Pell grants. This years average across the state college system is just over half. That, of course, gives the federal Department of Education the ability to dictate, through SACS requirements, how those colleges operate.

The other Khamon and I work with two national charity groups that award a few million dollars a year to scholars. Some are best of the best of the best sir, and some qualify simply as first generation attendees, or as sn adult returning for retraining. We’re not very restrictive during the application process. Some of the other public organizations are.

The rub is the private groups that support billion-dollar foundations to fund white american boys earning kudo degrees from prestigious universities so they can sit in government positions and continue the effort to keep higher education out of reach for the menial masses.

I don’t know how we’re gonna break that cycle without pitchforks and torches and guillotines.

 

[Veritable Quandry]

Update on my paperwork: I have been asked to prove the Ohio State University is a nonprofit/government organization.

 

[GoblinCampFollower]

supreme court ruled against biden. The crisis and confusion is expected to continue. repayment will come back in october..

Biden is trying to come up with a plan B...

https://www.nytimes.com/live/2023/06/30/us/student-loans-supreme-court-biden

Student debt: White House faces backlash for restarting interest on loans

The White House is facing backlash about its decision to reactivate interest for student loans as part of its “on-ramp” repayment program, which progressives and advocates argue isn’t enough to hel…

thehill.com

I'm really hopeful they at least come up with some way for people to refinance the loans. There is a world of difference between paying back the same loan at 2% interest vs 10%. Hopefully that would encounter less resistance even if less ideal.

 

[Noodles]

Yeah, the bigger problem is the interest. At the very minimum, abolish the interest on Student loads, or cap it at extremely low.

 

[detrius]

Yeah, the bigger problem is the interest. At the very minimum, abolish the interest on Student loads, or cap it at extremely low.

Charge negative interest rates and make it so they get used to pay off the debt.

 

[Soen Eber]

Austrailia, I think, has or had an education funding system where you go to college for free, but you end up paying a slightly higher tax rate through the rest of your life. I've always liked that concept.

 

[Zaida Gearbox]

I always thought they should make student loads interest free, and that they just automatically take like 10 % out of your paycheck after graduation like they do your taxes. Then, if they're still not paid off after 20 years wipe it out. Nobody is going to deliberately not earn enough to pay off their student loans for more than 20 years - or ever. Especially if the loans are interest free - because the big problem with student loans are the interest in frees. You can be making payments, and the amount you owe keeps going up and up and up.

 

[Bartholomew Gallacher]

Question: was the American public education system better and more open for social rise in the past, let's say in the 50s and 60s?

 

[Soen Eber]

Question: was the American public education system better and more open for social rise in the past, let's say in the 50s and 60s?

The big boost was the GI Bill signed during World War II along with the GI severance package (the 52/50 club*). The GI Bill helped returning service members go to college free or at low cost, while 52/50 gave them spending money for a year while the nation sorted itself out.

So you had what? 11 million young, fit, and disciplined 20 somethings got a college degree and the wherewithal (oh, wait, that's not a common word, let's say resources) to get high paying jobs. Many of them helped put men on the moon and propelled middle-classed prosperity in the U.S., until corporations and the super rich figured out how to claw back their money in the 70's & 80's. You may also want to research the Bonus March during the great depression, which inspired the American Legion to push for the GI Bill in the first place.

*Not sure if it was the GI severance package or not, but you should be able to find a reference by searching for 52/50 in qoutes.