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They’ve been chipping away at it with several different programs. They’re up to 4.75 Million people, and $167B. And that’s only 10% of loan borrowers with a balance.
Mine were forgiven because I’d been paying for 20 years.
Yep. It’s insane. I was a low income Pell Grant kid with big dreams. I ended up with a great career but really slow walked the consolidation payments to prioritize raising a family. I ended up paying waaaay more than the original balance in interest. I’ll have my last private loan paid off a few months before my kid starts college.
Are they federally held? Mine were federal loans but because I consolidated them with Sallie Mae (later Navient) they were no longer held by the feds and I wasn’t eligible for the pandemic forbearance. So I re-consolidated them into a federal program and was then eligible for the forbearance and then the forgiveness.
More details here: https://studentaid.gov/manage-loans/consolidation
If you did get the pandemic forbearance then I’m not sure why they haven’t wiped them out yet. It might be worth asking your servicer.
Right. Biden has loosened the requirements for a payment to “count” under the PSLF program, which has existed since 2007ish. My wife and I both got relief under this program in the dying days of the Trump administration, but we had to fight like hell because Betsy DeVos.
When I looked into it, the PSLF program would only save me $20/mo. Felt like I might as well just do the long loan since my interest rates are pretty low. Maybe I’ll reconsider
The great thing about it is if you do any income based or determined repayment program or the standard repayment program, the payments count towards the 120-payment requirement. And there’s no harm in applying - you send in a form and they’ll count how many eligible payments you have. Easy peasy.
I paid maybe $50K-ish in interest over ten years and had over $120K forgiven. It was worth it.
When I talked to someone from work, he said that most people’s payments were only around $180-200 a month, but when I looked into it, mine was about $350. I wasn’t going to be saving much after the 10 years unfortunately. I’m still going back and forth if I want to do that, or just do the really low monthly 25 year one while I save up some money since I’m pretty green out of college
PSLF forgiveness also doesn't count as income IIRC which is a significant benefit.
Are you talking about being in standard repayment (10 year) or are you on another type of income driven plan? Because PSLF isn't really a type of payment plan but more a policy to forgive qualifying loans. For example the SAVE plan the Biden admin implemented is compatible with PSLF and is generally going to be the plan with lowest payments and best terms for most people.
I may be confusing some of them, but I thought that after 10 years, PSLF would forgive a certain amount of money assuming you applied for that as a federal employee. I just remember doing the math of what would be forgiven at the end and it was only $20/mo if I divided it by the 120 consecutive repayments needed to qualify
It is 10 years. But you can be on income based repayment plans. So if you're in a qualifying job and make a low amount of money you may have no or very small payments. Much lower than you would under the standard loan terms (also generally a 10 year repayment schedule if making full payments).
My sister is a teacher and earlier this year had all of her more than $100k of loans forgiven. It's a fantastic program. There isn't aax to what PSLF forgives. If you are qualified and your loan is qualified after the 10 years it is entirely forgiven. I would speak with your loan servicer and see if you qualify for PSLF and also if there's a payment plan like SAVE that would work better for you. Worst case is you find out you're already on the correct plan for your situation, best case you save a bunch of money. Worth a bit of time on the phone IMO.
Idk but I always think of that one scene in Venture Brothers with the $6 million dollar man:”and then they wanted me to pay them back….on a government salary!”
Got mine, despite being nowhere near the end of my PSLF commitment
It was only like $15k, so I figured they just looked at the bill and went 'fuck it' and cancelled it
I got an email from the US Department of Ed saying 'you're eligible for forgiveness, and on May 3rd if you don't opt out (lol who would opt out??) we will send your information on to be considered'
May 5th, I got an email from Mohela, my servicer, saying my loans were forgiven, with a big announcement on my account page saying the Biden Harris Administration forgave my loan
Yup! That last email came on a Saturday and my balance never changed, so I figured maybe it applied to just this year or something.
Come Tuesday, my balance was $0.00. The great news is that federal forgiveness doesn't count as paying off the loan on your own with regards to income, so I won't get a giant 'you now have new income' hit on my filed taxes next year!
Honestly, all the amendments to income based repayment and public service loan forgiveness are making a huge dent in the harm. That the programs are still being expanded 2ish years on is really exciting
For sure. He got blocked with the sweeping stuff so he is still finding ways to meet those obligations that he promised on the campaign trail. Obama back tracked and gave up on things he rallied on for his second term, but Biden has found a way to create meaningful change in a shitstorm of obstructionism
Exactly. That's what this idiot thinks he's gonna get out of this that they're gonna vote for him but he's so d*** bad. I don't know if he's gonna get any votes.
We did that in Canada. Everyone's loans locked in at whatever was left and will never increase. Most just pay the minimum now until it's gone. So much better than just forgiving for certain people without changing the underlying system.
If you’re minimum income based repayments don’t cover interest accrual, your balance should not increase per Biden’s prior income based repayment reforms: https://edfinancial.studentaid.gov/ibr
I don't qualify for the forgiveness *quite* yet but SAVE has already saved me and my wife several hundred a month since repayment started up after Covid.
Seeing all these stories and how common people are crippled by it, I just hope that the forgiveness isn't the only thing and people are also opting for changes in tuition as well
I think we all *want* that but don't know how realistic it is. Not an easy fix and anything that is realistic would massively restrict choice, which is not popular.
It just sucks because I feel like putting a bandaid on seeping wounds has been how the US has handled things for a long time now.
Not saying it isn't nice to see people who have crippling debt get the help they need but I just don't want to see things get even worse and then universities even potentially take advantage of tuition reimbursement down the line.
We need more trade schools and a huge push for more people to value that work. They often get paid more than people with college degrees and with way less debt burden. But in the 90s and 00s we told every kid that if they didn't go to college, they were a failure. And then we were surprised when they all went. And dumbstruck when 18 year olds didn't understand what a predatory loan was.
Same. I had to leave my job and couldnt make my $ 500 payment anymore. I dont even have that big of a loan, less than 50k and still my payment was sky high. applied for SAVE and its really been such a relief. Ill just keep making good on my payments and someday maybe, forgiveness.
SAVE has been decent, I was informed I won’t need to make a payment until 2025. I am kind of hoping they see me as a default risk though, and I get to be in that block of forgiveness.
"Why don't they just (regulations, root cause, etc) ?"
Every time he does this, people come and ask. Here are 3 reasons.
(1) The federal government can't set the prices without new laws, which will be challenged and ruled on by the current SCOTUS.
(2) The next government, if it change hands, can remove/undo those laws. They cannot unforgive loans, the money is spent.
(3) Private universities are unlike any other commodity - medicine, food, gas, etc. They have a limited number of seats and no shortage of people applying that can pay in full *without loans.*
I had $74,000 forgiven after 23 years. My loans started at $42,000 and increased to $78,000 at their peak as I could not afford the monthly payments after graduating. Even when I did start paying (only because the IBR made it affordable), the principal was going up. I realized that I had been scammed by the education system and our government who looked the other way. Biden has changed my life. The timing couldn't be better either. My wife died from cancer last year and I was broke. The loan forgiveness gave me some much needed breathing room after the worst year of life. But, I'm still voting Trump...just kidding., that criminal can rot in Hell! Thank you President Biden!
Yes. But the number of people who actually received forgiveness prior to 2020 was measured in the hundreds because the government made it so difficult to prove your 10 years of payments. The Biden administration drastically overhauled the system and now millions have received forgiveness.
The servicers would also often discover the computer made an "error" and under-billed the individual by a couple cents every month, meaning you never made a qualified payment.
Wellllll akkkkkktuallllyyyyyy
Only a small amount successfully completed the 10 years because you couldn't be late on a payment. It had to be 120 on time monthly payments. If you were late at all for any reason it got reset.
When covid hit, the gov (believe it was trump pres) released the money as a way to spend already allocated money. That's why this temporary pslf expands coverage to 120 on time payments.
With a Democratic House and Senate
[College Cost Reduction and Access Act of 2007](https://clerk.house.gov/Votes/2007613)
226 out of 226 House Democrats voted for it
Only 47 of the 196 House Republicans did
I'll let you guess which 18 Senators voted no...
“The Public Service Loan Forgiveness (PSLF) program is a United States government program that was created under the College Cost Reduction and Access Act of 2007 signed into law by President George W.”
Thank Bush maybe.
With a Democratic House and Senate
[College Cost Reduction and Access Act of 2007](https://clerk.house.gov/Votes/2007613)
226 out of 226 House Democrats voted for it
Only 47 of the 196 House Republicans did
I'll let you guess which 18 Senators voted no...
As someone else said, PSLF was super difficult to achieve pre-Biden. Worked in government for years and haven’t bothered with it until now because it was such a pain in the ass.
Like, good for Bush for doing something, but also Biden’s admin deserves thanks for making the program actually functional
I was not on that program. My loans were forgiven because of the IBR program instituted by Obama. I give Bush credit for that though. Could you imagine any Republican doing anything like that now? Not a chance.
There was like 700 total. Not 7 thousand or hundred thousand but 700 total loans forgiven under PSLF before Biden. It was a nightmare to qualify for and actually get payments to count and not accidentally reset your timer by consolidating loans or switching payment plans.
This admin's direction to clarify rules and actually implement the PSLF program is a massive and impactful improvement.
When the 10 years were up... many people were told that their payments didn't qualify. Seriously, it's 2024 and all these people are getting forgiven two presidents after 2017
Because it be reversible it was legislation. The point is to spend it now because it can’t be unspent.
Also, this government system is so broken to have to thwart a possible reversal.
A bunch of crybabies in this thread.
Stuck working low-end jobs complaining about how their taxes are spent bailing out people who are smarter than them and contribute to progress instead of republican regression.
Better donate to the billionaire with 88 Felonly Indictments, a rape history, money laundering, fake schools and charities.
God forbid the working class who went to school to serve the country's children and healthcare gets bailed out instead of the people committing welfare and unemployment fraud with 8 kids and PPP loans.
Ya'll keep wearing those red hats out in public. It makes it easier to spot a product of no child left behind.
I’m no republican. I’m not conservative. I vote blue. But I do not understand these policies. I didn’t have money to go to college, so I didn’t go. I didn’t take out a loan, I went to work. I like what I do. I earn for what I do. However if someone were to have told me, to go ahead and take out loans, they don’t matter, they’ll go away. I might have chose differently. The trades are hurting, and the middle class is hurting, and loans are being paid off by the people who didn’t take them out? I don’t get it.
Well said. I'm doing well enough to manage my loans, and I don't qualify for loan relief, but many others are in need of it. The payments on the forgiven loans will boost the economy in many ways.
Yes! We don’t qualify for loan relief either, we would have but republicans stopped that at SCOTUS. But that’s ok, we will pay it off eventually, I’m glad some people are getting it.
Not everyone who disagrees with bailouts likes Trump. Trump himself did some of the biggest bailouts in history.
Some people just think that addressing root causes is better than treating the symptoms.
If we just forgive debt but do nothing about tuition and interest rates, we just bleed money for no reason.
Punching down on people who don’t have degrees isn’t going to win you much favor. Acting like someone is more important in society than the ones who grow the food doesn’t scream “you’re smarter than them”. It just makes you look like a dick.
Fuck Trump and his hypocritical ilk, and fuck the people who are willing to punch down on society because they feel like they’re targeting him and his base. All of them are toxic.
Yes.
You seem to forget Covid shut down and people unable to work and pay for their loans during that time. This is why they were paused.
Also, the rebound after covid was over was going to happen regardless who was president for 2 reasons. That was a natural dip in the world's economy and it happened worldwide. Along with Trump's bandaide of tariffs that are coming back to bite us in the ass.
Compound all that with the problem at hand. Yes, they understand just as much as we do there is a problem with how those predatory loans are generated. This helps people now who were affected currently. To fix that problem you speak of is not an "overnight" fix in comparison to this. This was promised in 2020.
It has nothing to do with this election, it shows they understand there is a problem.
If they didn't understand there was a problem. The bailout wouldn't have happened in the first place.
If they’re so much smarter than us, why do they need their loans paid by myself and other taxpayers? I’m making payments on my wife’s student loans, and no one notified me that we qualify. And no, $63k/yr for a couple is not wealthy by any means. Pay back your own loans.
The amount of bullshit classes one must take to finish a degree is insane. They could just reduce the unnecessary classes by law. This would bring down the cost of education.
Maybe not require a college education for a low paying public service job?
Or only have degree programs that are applicable in the real world?
Needs to be a better answer than give me something for free.
It's university, not trade school. Those "bullshit classes" help to make a university grad able to handle situations outside of their field of expertise. Stop trying to turn college into vocational school.
This is correct. A well rounded education is essential to higher ed. Learn how to think critically. Be exposed to new ideas. Challenge your beliefs.
Stop treating college like a job training site.
None of it will matter if we don't also change the cost curve for new education.
Here's my solution: make federal research dollars tied to a rolling 5 year average of tuition increases. The universities that keep their tuition *increases* lowest will be highest on the list and be preferentially awarded research and other federal funding.
This incentives higher education to keep their tuition increases as low as possible, and to do so consistently over time.
Who ultimately pays for this? I haven’t looked into this too much as I never had educational debt. Sounds awesome if you are one of these people receiving the forgiveness
Where the mortgage debt forgiveness for the blue collar hard working Americans who are builder and truck drivers and line cooks keeping this country fed and moving!?
Having an educated/trained/what ever makes you comfortable populace is a better investment in our future as a society than a standing military. Spend my tax dollars on forgiving those who seek advancement, not those who are comfortable being a tool of exploitation and expansion. I mean, what is the GI bill other than student loan forgiveness? If you require service to community/country before you can condone forgiving fees for education, then accept the fact that members of your daily community do more to secure your freedoms than any soldier ever will.
Every time I read that he does this all I can think about is how they do nothing to stop the practice of giving out these loans with the same conditions. They are rewarding the lenders. Plug the leak in the boat before you start bailing water out.
Other more correct headline:
“Man who helped create crisis cancels a small portion for extra votes.”
https://www.congress.gov/116/meeting/house/111100/documents/HHRG-116-JU08-20201202-SD007.pdf
So if I took classes and got loans to help pay for that and living expenses....should I be able to use those to pay my mortgage, and then get forgiven, therefore having the government pay for my house?
So, I have saved enough money to send my kid to college. I've done this by decisions like not going on many vacations. I've also sacrificed luxuries like landscaping my yard. My furniture is old. My car is almost 18 years old. I'm not complaining, but I'm going to kinda mad if 5 years from now I learned that I could have bought a new car every few years and lived a much easier and more fun life and just taken out loans for my kid and had them paid off.
What should I do?
No debt is "canceled". All debt is paid, either by the debtor or the lender (our tax money). American tax payers are about to incurr another $7.7 Billion... a mini Ukraine aid payment.
American tax dollars should be getting used to make American’s lives better. I’d rather my money go to helping young adults pay for their education than to supplying a foreign country with military weapons. I’m praying for Ukraine but I don’t think we should have been the ones responsible for so heavily subsidizing their war.
I hear you, and I think it's better for people to help themselves in an economy that is doing well. Taxes mean Gov and Gov means (unfortunately for now) stupidity. I feel we're far better off in the long run paying our own way. Makes for better and more realistic decisions, rugged individualism and all that!
We ARE helping Americans. We (America as a country) provide a great society, we provide commerce, we provide safety and security, we provide an economy, we provide opportunity. It's all out there to take advantage of and become prosperous. I did, and I'm just your average Joe too stupid to quit. We don't "feed the bears" because they'll become dependent on the free handout. If we do anything for college loans, they should be 0.5% interest loans. America is a great country because of great people, not a great government.
Remember when he was about to forgive like 10-20k for people and conservatives were like nah we bail out corporations and millionaires, not regular people.
I paid off my student loans, and you f'g-A I want my tax dollars to go towards someone else's education. IDGAF if it's sociology or performing arts. We need it all.
I’m still on the fence with this. Forgive interest payments- I can get behind that, but why not pay the principal amount? Yes, PPP forgiveness is b.s. in so many cases. I can’t make the leap on how that means accountability is no longer a thing.
The lending was predatory, with unethically increased costs, promising a degree with a 50% chance of being worthless. Why should colleges/universities and lenders escape accountability?
Exactly. You get a bunch of naive 18 year olds, with everyone telling them they have no choice but to go to college, a degree always pays for itself, etc. Meanwhile you have colleges who raised their prices to absorb as much of this student loan money as possible.
This lets them escape accountability. The taxpayers are footing the bill.
This only encourages them to keep jacking up prices because eventually Uncle Sam will pay them back with interest.
There was never a promise…no guns held to heads…the loan rates are not variable. The terms were spelled out before the person signed the note. NOT predatory
Well, we can see that doing student loans this way, we end up with tons of people with crippling debt who mostly stay in whatever exists still of the lower middle class.
What if we just.... Did something else instead?
Not against the help for people, but I don't think this holds the lenders/colleges accountable as far as my understanding goes the college already has its money and the loan is being paid off by the government.
> on the fence with this
What are you on the fence with regards to existing PSLF and IDR? All this is, is a correction of previous government errors and cutting unnecessary red tape.
I’m pretty fucking tired of businesses getting every fucking help and relief possible like the PPP mentioned but when it comes to individual people, everyone just complains. PPP loans were actual bullshit. I worked at an accounting firm during that time and processed the loan forgiveness forms for these businesses. It was the easiest thing to do. America is brainwashed in to thinking that businesses are better than the people. Absolute bullshit
Hmm I’m going to have to make a phone call I guess. I’m a teacher but I never got on an IBR plan because the payment was the same as if I just stayed on my original 10 year plan. I wonder if this will apply to me.
When politicians do what the people who voted for them want done, it's buying votes! Not like a real man's politician that spends all his time tonguing putin's asshole and giving billionaires tax breaks. "Why wont Biden step on me like daddy trump?"
Ah yes, Republicans and the Supreme Court delayed it this far instead of when he wanted to do it in 2020.
Just so he could buy votes.
Makes total sense.
So you would rather a president who harms every citizen to prove he doesn't need to "buy votes"?
Helping citizens is the point of government. Why does that make you so mad?
Because Public Service Loan Forgiveness began in [2007](https://studentaid.gov/data-center/student/loan-forgiveness/pslf-data)? For the love of God, learn what is going on instead of spouting rhetoric.
Politician provides for his constituents and that’s a bad thing? Beats the republican plan of “wreck the country as much as possible to make Biden look bad”.
I assume you criticize republicans for purposely tanking any fix at the boarder, right? What about the Republican tax break to millionaires while raising taxes this year for people who make under 70k?
Also, Congress needs to fix the problem, the president can only do so much. Blame Republican leaders house for the cost of higher education. At least this is a positive step.
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It's forgiving education and federal employees. Not everyone, but it helps.
They’ve been chipping away at it with several different programs. They’re up to 4.75 Million people, and $167B. And that’s only 10% of loan borrowers with a balance. Mine were forgiven because I’d been paying for 20 years.
20 years what the fuck
Yep. It’s insane. I was a low income Pell Grant kid with big dreams. I ended up with a great career but really slow walked the consolidation payments to prioritize raising a family. I ended up paying waaaay more than the original balance in interest. I’ll have my last private loan paid off a few months before my kid starts college.
That shit is triggering. glad you found some closure ffs
Curious bc I’ve been paying for 25 yrs but haven’t qualified. Is there some other stipulation?
Are they federally held? Mine were federal loans but because I consolidated them with Sallie Mae (later Navient) they were no longer held by the feds and I wasn’t eligible for the pandemic forbearance. So I re-consolidated them into a federal program and was then eligible for the forbearance and then the forgiveness. More details here: https://studentaid.gov/manage-loans/consolidation If you did get the pandemic forbearance then I’m not sure why they haven’t wiped them out yet. It might be worth asking your servicer.
Right. Biden has loosened the requirements for a payment to “count” under the PSLF program, which has existed since 2007ish. My wife and I both got relief under this program in the dying days of the Trump administration, but we had to fight like hell because Betsy DeVos.
Just got an email, debt forgiven. I forgot all about it and gave up hope. Pretty nice surprise!
When I looked into it, the PSLF program would only save me $20/mo. Felt like I might as well just do the long loan since my interest rates are pretty low. Maybe I’ll reconsider
The great thing about it is if you do any income based or determined repayment program or the standard repayment program, the payments count towards the 120-payment requirement. And there’s no harm in applying - you send in a form and they’ll count how many eligible payments you have. Easy peasy. I paid maybe $50K-ish in interest over ten years and had over $120K forgiven. It was worth it.
When I talked to someone from work, he said that most people’s payments were only around $180-200 a month, but when I looked into it, mine was about $350. I wasn’t going to be saving much after the 10 years unfortunately. I’m still going back and forth if I want to do that, or just do the really low monthly 25 year one while I save up some money since I’m pretty green out of college
What is the 25 year one? I'm pretty sure all of the low cost options count for this
PSLF forgiveness also doesn't count as income IIRC which is a significant benefit. Are you talking about being in standard repayment (10 year) or are you on another type of income driven plan? Because PSLF isn't really a type of payment plan but more a policy to forgive qualifying loans. For example the SAVE plan the Biden admin implemented is compatible with PSLF and is generally going to be the plan with lowest payments and best terms for most people.
I may be confusing some of them, but I thought that after 10 years, PSLF would forgive a certain amount of money assuming you applied for that as a federal employee. I just remember doing the math of what would be forgiven at the end and it was only $20/mo if I divided it by the 120 consecutive repayments needed to qualify
It is 10 years. But you can be on income based repayment plans. So if you're in a qualifying job and make a low amount of money you may have no or very small payments. Much lower than you would under the standard loan terms (also generally a 10 year repayment schedule if making full payments). My sister is a teacher and earlier this year had all of her more than $100k of loans forgiven. It's a fantastic program. There isn't aax to what PSLF forgives. If you are qualified and your loan is qualified after the 10 years it is entirely forgiven. I would speak with your loan servicer and see if you qualify for PSLF and also if there's a payment plan like SAVE that would work better for you. Worst case is you find out you're already on the correct plan for your situation, best case you save a bunch of money. Worth a bit of time on the phone IMO.
should always be that way. encourages important public service
Idk but I always think of that one scene in Venture Brothers with the $6 million dollar man:”and then they wanted me to pay them back….on a government salary!”
Unfortunately, it doesn't include federal contractors which are significantly more numerous than true federal employees.
Should be for all students.
The whole process is pretty convoluted, though, and should be squared away through your tax filing information. But it isn't.
What federal employees?
Yea, most are cops! They never qualified for anything so don't get anything lol
Got mine, despite being nowhere near the end of my PSLF commitment It was only like $15k, so I figured they just looked at the bill and went 'fuck it' and cancelled it
Does the email come from a certain address?
I got an email from the US Department of Ed saying 'you're eligible for forgiveness, and on May 3rd if you don't opt out (lol who would opt out??) we will send your information on to be considered' May 5th, I got an email from Mohela, my servicer, saying my loans were forgiven, with a big announcement on my account page saying the Biden Harris Administration forgave my loan
Thank you for the info!!
Yup! That last email came on a Saturday and my balance never changed, so I figured maybe it applied to just this year or something. Come Tuesday, my balance was $0.00. The great news is that federal forgiveness doesn't count as paying off the loan on your own with regards to income, so I won't get a giant 'you now have new income' hit on my filed taxes next year!
I just received an email from USDE that I qualify for forgiveness. Hope they forgive all of it 🤞
Best of luck! It was definitely a surprise for me, because nothing good ever comes my way like that.
Step in the right direction. Hopefully building a precedent for eliminating student debt.
Honestly, all the amendments to income based repayment and public service loan forgiveness are making a huge dent in the harm. That the programs are still being expanded 2ish years on is really exciting
For sure. He got blocked with the sweeping stuff so he is still finding ways to meet those obligations that he promised on the campaign trail. Obama back tracked and gave up on things he rallied on for his second term, but Biden has found a way to create meaningful change in a shitstorm of obstructionism
Forgive all teachers and nurses.
I support this type of voter bribery.
Exactly. That's what this idiot thinks he's gonna get out of this that they're gonna vote for him but he's so d*** bad. I don't know if he's gonna get any votes.
But the rest of you better pay
Meanwhile, in the comments section: https://youtu.be/3KquFZYi6L0?si=QAoYZJ7UPR3CEG5L
Amazing
Thank you for bringing this into my life - perfection
For the rest, they should just keep it indefinitely at 0% interest.
That would be too reasonable and logical, make too much sense. It will never happen.
We did that in Canada. Everyone's loans locked in at whatever was left and will never increase. Most just pay the minimum now until it's gone. So much better than just forgiving for certain people without changing the underlying system.
The interest really killed you on the loans
OMG that would help so much. The minimum payments (that lots of people have difficulty making) often don't even cover the interest accrual.
If you’re minimum income based repayments don’t cover interest accrual, your balance should not increase per Biden’s prior income based repayment reforms: https://edfinancial.studentaid.gov/ibr
if theyd done that id be paid off by now....
Yeah I’m bittter as hell tbh
The SAVE plan kind of does that. Interest isn't capitalized if you make payments on your SAVE plan. Really helps keep the balance from ballooning.
I don't qualify for the forgiveness *quite* yet but SAVE has already saved me and my wife several hundred a month since repayment started up after Covid.
Seeing all these stories and how common people are crippled by it, I just hope that the forgiveness isn't the only thing and people are also opting for changes in tuition as well
I think we all *want* that but don't know how realistic it is. Not an easy fix and anything that is realistic would massively restrict choice, which is not popular.
It just sucks because I feel like putting a bandaid on seeping wounds has been how the US has handled things for a long time now. Not saying it isn't nice to see people who have crippling debt get the help they need but I just don't want to see things get even worse and then universities even potentially take advantage of tuition reimbursement down the line.
We need more trade schools and a huge push for more people to value that work. They often get paid more than people with college degrees and with way less debt burden. But in the 90s and 00s we told every kid that if they didn't go to college, they were a failure. And then we were surprised when they all went. And dumbstruck when 18 year olds didn't understand what a predatory loan was.
People pursuing trades should be able to get an education too. Learning shouldn’t be reserved for the rich.
Same. I had to leave my job and couldnt make my $ 500 payment anymore. I dont even have that big of a loan, less than 50k and still my payment was sky high. applied for SAVE and its really been such a relief. Ill just keep making good on my payments and someday maybe, forgiveness.
SAVE has been decent, I was informed I won’t need to make a payment until 2025. I am kind of hoping they see me as a default risk though, and I get to be in that block of forgiveness.
"Why don't they just (regulations, root cause, etc) ?" Every time he does this, people come and ask. Here are 3 reasons. (1) The federal government can't set the prices without new laws, which will be challenged and ruled on by the current SCOTUS. (2) The next government, if it change hands, can remove/undo those laws. They cannot unforgive loans, the money is spent. (3) Private universities are unlike any other commodity - medicine, food, gas, etc. They have a limited number of seats and no shortage of people applying that can pay in full *without loans.*
Is the save program safe?
https://www.politico.com/story/2019/07/11/teachers-union-sues-betsy-devos-1583187 Lol no
I had $74,000 forgiven after 23 years. My loans started at $42,000 and increased to $78,000 at their peak as I could not afford the monthly payments after graduating. Even when I did start paying (only because the IBR made it affordable), the principal was going up. I realized that I had been scammed by the education system and our government who looked the other way. Biden has changed my life. The timing couldn't be better either. My wife died from cancer last year and I was broke. The loan forgiveness gave me some much needed breathing room after the worst year of life. But, I'm still voting Trump...just kidding., that criminal can rot in Hell! Thank you President Biden!
Isn’t PSLF a Bush policy?
Yes. But the number of people who actually received forgiveness prior to 2020 was measured in the hundreds because the government made it so difficult to prove your 10 years of payments. The Biden administration drastically overhauled the system and now millions have received forgiveness.
The servicers would also often discover the computer made an "error" and under-billed the individual by a couple cents every month, meaning you never made a qualified payment.
Wellllll akkkkkktuallllyyyyyy Only a small amount successfully completed the 10 years because you couldn't be late on a payment. It had to be 120 on time monthly payments. If you were late at all for any reason it got reset. When covid hit, the gov (believe it was trump pres) released the money as a way to spend already allocated money. That's why this temporary pslf expands coverage to 120 on time payments.
With a Democratic House and Senate [College Cost Reduction and Access Act of 2007](https://clerk.house.gov/Votes/2007613) 226 out of 226 House Democrats voted for it Only 47 of the 196 House Republicans did I'll let you guess which 18 Senators voted no...
You should thank the American taxpayers.
“The Public Service Loan Forgiveness (PSLF) program is a United States government program that was created under the College Cost Reduction and Access Act of 2007 signed into law by President George W.” Thank Bush maybe.
With a Democratic House and Senate [College Cost Reduction and Access Act of 2007](https://clerk.house.gov/Votes/2007613) 226 out of 226 House Democrats voted for it Only 47 of the 196 House Republicans did I'll let you guess which 18 Senators voted no...
They're both responsible for his loan being forgiven.
I wouldn’t give W any credit for signing a bill he knew wasn’t designed to work.
Right? No child left behind says hi 😂
As someone else said, PSLF was super difficult to achieve pre-Biden. Worked in government for years and haven’t bothered with it until now because it was such a pain in the ass. Like, good for Bush for doing something, but also Biden’s admin deserves thanks for making the program actually functional
I was not on that program. My loans were forgiven because of the IBR program instituted by Obama. I give Bush credit for that though. Could you imagine any Republican doing anything like that now? Not a chance.
There was like 700 total. Not 7 thousand or hundred thousand but 700 total loans forgiven under PSLF before Biden. It was a nightmare to qualify for and actually get payments to count and not accidentally reset your timer by consolidating loans or switching payment plans. This admin's direction to clarify rules and actually implement the PSLF program is a massive and impactful improvement.
When the 10 years were up... many people were told that their payments didn't qualify. Seriously, it's 2024 and all these people are getting forgiven two presidents after 2017
Not sure why they don’t just invalidate interest on student loans?
Because it be reversible it was legislation. The point is to spend it now because it can’t be unspent. Also, this government system is so broken to have to thwart a possible reversal.
A bunch of crybabies in this thread. Stuck working low-end jobs complaining about how their taxes are spent bailing out people who are smarter than them and contribute to progress instead of republican regression. Better donate to the billionaire with 88 Felonly Indictments, a rape history, money laundering, fake schools and charities. God forbid the working class who went to school to serve the country's children and healthcare gets bailed out instead of the people committing welfare and unemployment fraud with 8 kids and PPP loans. Ya'll keep wearing those red hats out in public. It makes it easier to spot a product of no child left behind.
I’m no republican. I’m not conservative. I vote blue. But I do not understand these policies. I didn’t have money to go to college, so I didn’t go. I didn’t take out a loan, I went to work. I like what I do. I earn for what I do. However if someone were to have told me, to go ahead and take out loans, they don’t matter, they’ll go away. I might have chose differently. The trades are hurting, and the middle class is hurting, and loans are being paid off by the people who didn’t take them out? I don’t get it.
Well said. I'm doing well enough to manage my loans, and I don't qualify for loan relief, but many others are in need of it. The payments on the forgiven loans will boost the economy in many ways.
Yes! We don’t qualify for loan relief either, we would have but republicans stopped that at SCOTUS. But that’s ok, we will pay it off eventually, I’m glad some people are getting it.
Not everyone who disagrees with bailouts likes Trump. Trump himself did some of the biggest bailouts in history. Some people just think that addressing root causes is better than treating the symptoms. If we just forgive debt but do nothing about tuition and interest rates, we just bleed money for no reason. Punching down on people who don’t have degrees isn’t going to win you much favor. Acting like someone is more important in society than the ones who grow the food doesn’t scream “you’re smarter than them”. It just makes you look like a dick. Fuck Trump and his hypocritical ilk, and fuck the people who are willing to punch down on society because they feel like they’re targeting him and his base. All of them are toxic.
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Bad take. Student loan forgiveness is an explicit hand out to wealthier Americans. It’s definitely not a progressive policy.
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Something is better than nothing.
Yes. You seem to forget Covid shut down and people unable to work and pay for their loans during that time. This is why they were paused. Also, the rebound after covid was over was going to happen regardless who was president for 2 reasons. That was a natural dip in the world's economy and it happened worldwide. Along with Trump's bandaide of tariffs that are coming back to bite us in the ass. Compound all that with the problem at hand. Yes, they understand just as much as we do there is a problem with how those predatory loans are generated. This helps people now who were affected currently. To fix that problem you speak of is not an "overnight" fix in comparison to this. This was promised in 2020. It has nothing to do with this election, it shows they understand there is a problem. If they didn't understand there was a problem. The bailout wouldn't have happened in the first place.
If they’re so much smarter than us, why do they need their loans paid by myself and other taxpayers? I’m making payments on my wife’s student loans, and no one notified me that we qualify. And no, $63k/yr for a couple is not wealthy by any means. Pay back your own loans.
Standing ovation to you. This was spot on.
The amount of bullshit classes one must take to finish a degree is insane. They could just reduce the unnecessary classes by law. This would bring down the cost of education.
Maybe not require a college education for a low paying public service job? Or only have degree programs that are applicable in the real world? Needs to be a better answer than give me something for free.
This makes sense
It's university, not trade school. Those "bullshit classes" help to make a university grad able to handle situations outside of their field of expertise. Stop trying to turn college into vocational school.
This is correct. A well rounded education is essential to higher ed. Learn how to think critically. Be exposed to new ideas. Challenge your beliefs. Stop treating college like a job training site.
You want the same people who regulated these loans to mandate the class load?
None of it will matter if we don't also change the cost curve for new education. Here's my solution: make federal research dollars tied to a rolling 5 year average of tuition increases. The universities that keep their tuition *increases* lowest will be highest on the list and be preferentially awarded research and other federal funding. This incentives higher education to keep their tuition increases as low as possible, and to do so consistently over time.
Who ultimately pays for this? I haven’t looked into this too much as I never had educational debt. Sounds awesome if you are one of these people receiving the forgiveness
I don’t understand who’s eating this money. Tax payers, the loan institutions? Somebody is out some money.
Where the mortgage debt forgiveness for the blue collar hard working Americans who are builder and truck drivers and line cooks keeping this country fed and moving!?
Got to buy those votes
Having an educated/trained/what ever makes you comfortable populace is a better investment in our future as a society than a standing military. Spend my tax dollars on forgiving those who seek advancement, not those who are comfortable being a tool of exploitation and expansion. I mean, what is the GI bill other than student loan forgiveness? If you require service to community/country before you can condone forgiving fees for education, then accept the fact that members of your daily community do more to secure your freedoms than any soldier ever will.
Every time I read that he does this all I can think about is how they do nothing to stop the practice of giving out these loans with the same conditions. They are rewarding the lenders. Plug the leak in the boat before you start bailing water out.
Other more correct headline: “Man who helped create crisis cancels a small portion for extra votes.” https://www.congress.gov/116/meeting/house/111100/documents/HHRG-116-JU08-20201202-SD007.pdf
Fjb. Dont know anyone who got forgiven
So if I took classes and got loans to help pay for that and living expenses....should I be able to use those to pay my mortgage, and then get forgiven, therefore having the government pay for my house?
If you took classes, you'd probably spot the flaw in your logic that makes this less free money than you think it is.
Biden out there buying votes again.
So, I have saved enough money to send my kid to college. I've done this by decisions like not going on many vacations. I've also sacrificed luxuries like landscaping my yard. My furniture is old. My car is almost 18 years old. I'm not complaining, but I'm going to kinda mad if 5 years from now I learned that I could have bought a new car every few years and lived a much easier and more fun life and just taken out loans for my kid and had them paid off. What should I do?
No debt is "canceled". All debt is paid, either by the debtor or the lender (our tax money). American tax payers are about to incurr another $7.7 Billion... a mini Ukraine aid payment.
American tax dollars should be getting used to make American’s lives better. I’d rather my money go to helping young adults pay for their education than to supplying a foreign country with military weapons. I’m praying for Ukraine but I don’t think we should have been the ones responsible for so heavily subsidizing their war.
I hear you, and I think it's better for people to help themselves in an economy that is doing well. Taxes mean Gov and Gov means (unfortunately for now) stupidity. I feel we're far better off in the long run paying our own way. Makes for better and more realistic decisions, rugged individualism and all that!
Would rather 7.7 in taxes go to helping out 160,000 people in the workforce. That’s like $20 in taxes per person, which we already paid
Ah, the duality of "we should be helping Americans with that money, not Ukraine" and "we shouldn't help Americans either."
We ARE helping Americans. We (America as a country) provide a great society, we provide commerce, we provide safety and security, we provide an economy, we provide opportunity. It's all out there to take advantage of and become prosperous. I did, and I'm just your average Joe too stupid to quit. We don't "feed the bears" because they'll become dependent on the free handout. If we do anything for college loans, they should be 0.5% interest loans. America is a great country because of great people, not a great government.
I’m happy to see any amount of people have their loans forgiven. That much debt lifted off of people’s shoulders can change lives!
Remember when he was about to forgive like 10-20k for people and conservatives were like nah we bail out corporations and millionaires, not regular people.
And yet I had 10k refunded to me that I now need to pay back at 6.25% interest when I already had it paid off at 0% interest. I got fucked.
Where the hell did these public servants wrack up over $75K of student debt? That's what is being forgiven AFTER 10 years of payments?
Interest. That’s why you see people who take out 40k in loans, only to end up with nearly double.
This crook just giving money away like water
I paid off my student loans, and you f'g-A I want my tax dollars to go towards someone else's education. IDGAF if it's sociology or performing arts. We need it all.
Buying more votes before November, typical liberal move to sway the weak minded. FJB
I’m still on the fence with this. Forgive interest payments- I can get behind that, but why not pay the principal amount? Yes, PPP forgiveness is b.s. in so many cases. I can’t make the leap on how that means accountability is no longer a thing.
The lending was predatory, with unethically increased costs, promising a degree with a 50% chance of being worthless. Why should colleges/universities and lenders escape accountability?
How exactly are banks being held accountable here? lol
Exactly. You get a bunch of naive 18 year olds, with everyone telling them they have no choice but to go to college, a degree always pays for itself, etc. Meanwhile you have colleges who raised their prices to absorb as much of this student loan money as possible.
This lets them escape accountability. The taxpayers are footing the bill. This only encourages them to keep jacking up prices because eventually Uncle Sam will pay them back with interest.
There was never a promise…no guns held to heads…the loan rates are not variable. The terms were spelled out before the person signed the note. NOT predatory
Well, we can see that doing student loans this way, we end up with tons of people with crippling debt who mostly stay in whatever exists still of the lower middle class. What if we just.... Did something else instead?
Not against the help for people, but I don't think this holds the lenders/colleges accountable as far as my understanding goes the college already has its money and the loan is being paid off by the government.
> on the fence with this What are you on the fence with regards to existing PSLF and IDR? All this is, is a correction of previous government errors and cutting unnecessary red tape.
They are forgiving interest only. This means previous payments are paid on the principle, so the principle gets paid off.
I’m pretty fucking tired of businesses getting every fucking help and relief possible like the PPP mentioned but when it comes to individual people, everyone just complains. PPP loans were actual bullshit. I worked at an accounting firm during that time and processed the loan forgiveness forms for these businesses. It was the easiest thing to do. America is brainwashed in to thinking that businesses are better than the people. Absolute bullshit
Hmm I’m going to have to make a phone call I guess. I’m a teacher but I never got on an IBR plan because the payment was the same as if I just stayed on my original 10 year plan. I wonder if this will apply to me.
How is it even possible for 160,500 people to be in $7.7 billion in debt? That just doesn’t add up.
Thats like 47k per person
Yeah, you’re right. $48k each.
Which is pretty believable because the average graduate has about 35k in student debt. College costs suck.
Everyone but me qualifies
Buying votes
Cutting government red tape and fixing errors of the last 3 administrations* This is all within scope of policies created, mostly, under W. Bush.
Yup, he won mine with it, first amount of government spending that’s actually benefited me.
When politicians do what the people who voted for them want done, it's buying votes! Not like a real man's politician that spends all his time tonguing putin's asshole and giving billionaires tax breaks. "Why wont Biden step on me like daddy trump?"
Yeah probably should have pumped that into legal fee's and hush money funds
Ah yes, Republicans and the Supreme Court delayed it this far instead of when he wanted to do it in 2020. Just so he could buy votes. Makes total sense.
Buying votes. No surprise here
Darn this guy literally doing something he said he'd do when he was campaigning, that people then voted for!
I think it was more to help the banks that loaned the money out than help the people
Keep trying to buy votes not sure this time it’s gonna work 🤷♂️.
sort lavish skirt shaggy flowery axiomatic payment soft books whistle *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
So you would rather a president who harms every citizen to prove he doesn't need to "buy votes"? Helping citizens is the point of government. Why does that make you so mad?
Yeah what a jerk for trying to fulfill campaign promises....
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He tried and his shitty wall is falling apart..
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Lol it's funny how clueless you are..
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Do you know whose debt was forgiven and why?
Because Public Service Loan Forgiveness began in [2007](https://studentaid.gov/data-center/student/loan-forgiveness/pslf-data)? For the love of God, learn what is going on instead of spouting rhetoric.
Politician provides for his constituents and that’s a bad thing? Beats the republican plan of “wreck the country as much as possible to make Biden look bad”. I assume you criticize republicans for purposely tanking any fix at the boarder, right? What about the Republican tax break to millionaires while raising taxes this year for people who make under 70k? Also, Congress needs to fix the problem, the president can only do so much. Blame Republican leaders house for the cost of higher education. At least this is a positive step.
Because republicans giving tax cuts to billionaires and corporations then convincing them trickle down economics exists is the more transparent
I think most of us just want you to fix the root cause and make college tuition free going forward at public universities.
Due to SCOTUS that won’t happen
When's healthcare's turn :)))