The Biden administration has decided to scale back student debt relief. Politico. They said that students that owe money to private lenders would no longer get relief. Previously, these people would have gotten between $10,000 and $20,000 in student debt wiped out. The new rule would not affect the majority of people who have student debt because most of that debt is held by the Federal Government. The scale back happens as Republicans are filing lawsuits against the student loan relief as they say it is illegal. These suits are largely based on the damage the loan forgiveness would do to private lenders. The Biden administration says that only 770,000 people would be affected by the policy change.
My Comment:
Just a quick update on this issue, which proved to be extremely controversial. This move won't affect too many people but the ones that are affected by it will be furious. It sounds like the ones that put in for this before today will still get the money but everyone else is out of luck. Just goes to show that procrastination can really screw you over.
I think this is a pretty good indication that the Biden administration realized that they would lose the lawsuit. I can't see them doing this otherwise and I am guessing that the private lenders issue could have put the whole student loan giveaway at risk. If so than this move will probably make stopping the student loan giveaway harder.
Unfortunately, I don't see the small reduction in loan relief actually helping too much with the problems that the relief caused. It will save some money, yes, but not much. And it's still a terrible incentive for borrowers, why not take out high risk loans for degrees that offer little in return.
I am still angry about this giveaway. It was such a slap in the fact to everyone who either didn't go to college or paid their own way. The only people that seemed in favor of this were the people that were getting the payments. And it was so obviously a play for votes in the 2022 midterms it was disgusting.
But I don't think it actually helped all that much in terms of the election. College educated types tend to be more liberal than most and the majority of people that were getting these payments were voting for Democrats already. And the ones that just got screwed over? Maybe they will be mad enough to not vote for a party that did this to them.
This is one of the most infuriating things Biden could do. I also notice that no one is reporting that these illegal payments will last for 10 years at a cost to taxpayers of between $250,000,000.000 and $500 billion.
ReplyDeleteYep, it is infuriating. But I doubt it will last 10 years unless the Democrats somehow maintain control of both houses of congress and the presidency for that entire time.
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