8 million student-loan borrowers on Biden's new repayment plan just got more bad news after a federa

[mystery-ak]

8 million student-loan borrowers on Biden's new repayment plan just got more bad news after a federal court officially blocked cheaper payments and debt cancellation
Ayelet Sheffey
Fri, August 9, 2024 at 4:08 PM CDT

    The 8th Circuit officially blocked the SAVE student-loan repayment plan in its entirety.

    It replaces its temporary stay on the plan from July, which paused cheaper payments and debt relief.

    Enrolled borrowers will likely be in limbo for long as the legal process progresses.

The legal roller coaster for millions of student-loan borrowers continues.

On Friday, the 8th Circuit Court of Appeals placed a preliminary injunction on President Joe Biden's SAVE income-driven repayment plan, intended to lower monthly payments and shorten the timeline for relief for the 8 million borrowers enrolled.

If this sounds familiar, that's because it is: on July 18, the 8th Circuit placed a temporary stay on the plan in response to a lawsuit led by Missouri's attorney general to block the plan from being implemented. This latest ruling replaces that stay, and it likely means that enrolled borrowers will be in limbo for longer as the legal process is carried out.

"Among the considerations here are that all borrowers currently impacted by our administrative stay are in administrative forbearance and thus not required to pay principal or interest on their loans, borrowers who have remained in PAYE and REPAYE plans are not impacted, and the States cannot turn back the clock on any loans that have already been forgiven," the 8th Circuit said in its ruling.

The Education Department did not immediately respond to a request for comment from Business Insider on what this latest ruling will mean for borrowers. As a result of the legal challenges, the department has already placed all enrolled borrowers on administrative forbearance, during which the borrowers are not required to make any payments and interest will not accrue.

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https://www.yahoo.com/news/8-million-student-loan-borrowers-210800444.html

[Hoodat]

There is a solution to all of this.  Simply have borrowers pay back the money they borrowed. 

[IsailedawayfromFR]

One borrower on SAVE previously told BI that he's worried he'll have to sell his house or get a second job if he no longer has access to cheaper payments under the plan.

"Right when my wife and I felt like we were in a position to start a family and start the next chapter of our lives, it feels like the rug got pulled out from underneath us because it sure seemed like the SAVE plan was something that we could rely on," he said.

Who else feels sorry for this jerk, expecting the rest of us to pony up for his free ride?

Man up like the vast majority of those who paid up for college instead of sucking on the government tit.

[Hoodat]

One borrower on SAVE previously told BI that he's worried he'll have to sell his house or get a second job if he no longer has access to cheaper payments under the plan.

How was he able to qualify for a mortgage with all that student debt?

[jafo2010]

The lie is that many of these folks are making huge money, and getting out of a debt they are solely responsible for is just the mindset of people under 45 today.  They are not responsible for anything.

[verga]

I had a student loan with about $3,500 on it. The day Biden announced his plan vergette went and paid the whole thing off. She said I will be D@MNED if I pass any of our debt onto anyone else.

[DefiantMassRINO]

Why does college cost so much?

Why has the cost of college been increasing faster than the rate of inflation for the past 40 - 50 years?

[verga]

Why does college cost so much?

Why has the cost of college been increasing faster than the rate of inflation for the past 40 - 50 years?

Government loans. When the Government said they would insure loans the college could charge whatever they wanted. If you went into a college and could not hack it, the government paid off your loan. Combined that with useless degrees like Wymn's studies and Dance theory, that will not get you a job and you have a recipe for disaster. 

[IsailedawayfromFR]

I had a student loan with about $3,500 on it. The day Biden announced his plan vergette went and paid the whole thing off. She said I will be D@MNED if I pass any of our debt onto anyone else.

That attitude does not prevail unfortunately among so many of today's citizens.

It used to be a shame that anyone would be found to be on welfare.  Now it is not just acceptable, but expected to take handouts.

[verga]

That attitude does not prevail unfortunately among so many of today's citizens.

It used to be a shame that anyone would be found to be on welfare.  Now it is not just acceptable, but expected to take handouts.

25 years ago teaching  up north, we had parent conference day, inner city Buffalo. I had one student whose Grandmother was 5 years older than me. (I was 37 at the time, the student was 14)

[IsailedawayfromFR]

25 years ago teaching  up north, we had parent conference day, inner city Buffalo. I had one student whose Grandmother was 5 years older than me. (I was 37 at the time, the student was 14)

Grandparents have gone a long way toward overcoming the lack of competent parenting.

My wife is an ex teacher and has commented many times on the stability those grandparents give to families with dysfunctional parent(s).

[berdie]

I think a lot of students signed on to loans they didn't understand.

I get that. But those loans shouldn't be forgiven. They still went to college. Give them a way to refinance in a way they can afford. jmho

[goatprairie]

That attitude does not prevail unfortunately among so many of today's citizens.

It used to be a shame that anyone would be found to be on welfare.  Now it is not just acceptable, but expected to take handouts.

Yes, as the old saying goes, those who rob Peter to pay Paul can usually count on the support of Paul.

[Hoodat]

Why does college cost so much?

Why has the cost of college been increasing faster than the rate of inflation for the past 40 - 50 years?

Government money flooding the tuition market.

[Hoodat]

I think a lot of students signed on to loans they didn't understand.

A lot of students also voted to have their 3% competitive market student loan rates replaced by a government monopolized 6.8% rate in 2009.

[jafo2010]

berdie...
I think a lot of students signed on to loans they didn't understand.

Do you really think folks in college/universities are that dumb?  Really?

They had to go to a financial institution and fill out an application for the loan, requesting the money, knowing full well why, what, how, when, etc of the transaction!

Anyone applying for  a loan not understanding all of that has no business attending an advanced school.  He/she should be serving burgers at McDonald's. 

Didn't understand, uggh!

[berdie]

A lot of students also voted to have their 3% competitive market student loan rates replaced by a government monopolized 6.8% rate in 2009.

I don't doubt you in the least @Hoodat but why did this happen? I tried to research this and can't find it. Why would they vote for this?

[berdie]

Do you really think folks in college/universities are that dumb?  Really?

They had to go to a financial institution and fill out an application for the loan, requesting the money, knowing full well why, what, how, when, etc of the transaction!

Anyone applying for  a loan not understanding all of that has no business attending an advanced school.  He/she should be serving burgers at McDonald's. 

Didn't understand, uggh!

I will agree @jafo2010  that many of these folks shouldn't be attending college. Not everyone should go.

But yes, I do think they are this stupid. They just see some dream with an unrealistic degree and say "Hot Diggity!" if I just sign  this piece of paper I'll be set for life.

Yes, I do think these people are that stupid. The youth of today are not as mature or educated as I, and depending on your age you, were. It reminds me of them buying a car. They look at the monthly payment...not the interest or total outlay.

Eventually a person can get out of a bad car loan. A college loan is, mostly, for life.

I'm not saying forgive it. I'm just suggesting a refinance.

[Hoodat]

I don't doubt you in the least @Hoodat but why did this happen? I tried to research this and can't find it. Why would they vote for this?

@berdie

Before Obama, there were several lenders that issued student loans.  The lenders competed amongst themselves, lending their money at market rates, typically for ten year durations.  And government's role was to guarantee those loans in the event that a borrower defaulted.

But Obama changed all that.  Instead of students choosing one of these independent lenders to borrow from, the student now had only one lender - the federal government.  And as sole lender, the federal government set the rate - 6.78%.

I took out student loans in 2005 and 2006 from Citi at an adjustable rate.  The risk with an adjustable rate is that rates can go up (or down).  The benefit is that adjustable rates are typically a couple of points below the fixed rate.  For me, my rate was 2.34% which is a hell of a lot better than 6.78%.  This made it easier to pay off my loans early.

Which now bring us to the question 'Why would students vote for this?'  They voted for it because Obama was hip, slick, and cool.

[berdie]

Thanks for the reply @Hoodat. I didn't connect the date with the event. Sometimes I'm a little slow.

But this just reinforces my opinion that the younguns then and today just aren't that smart. But they sure are woke and cool, aren't they?

[jafo2010]

berdie...
I'm not saying forgive it. I'm just suggesting a refinance.


First, they in fact signed a contract.  No one put a gun to their head, did they?  No!  And refinance, with higher interest rates existing today?  Brilliant!  What is your degree in, basket weaving?

When they applied for the loans, they were adults, not ten year olds.  I am tired of hearing the 18-30 year olds today are not mature enough.  That is flat out bogus.  Talk about being woke!

Accountability, how about  dose of that?  For you and all these jerk offs that think the taxpayer has nothing better to do than pay for their decisions, good or bad.  No thank you.

If this is what is going to happen, perhaps the time has come to END STUDENT LOANS.  Let them work to earn the money and then go to school. 

I AM TIRED OF THE TAXPAYER BEING EXPECTED TO PAY THE TAB FOR EVERY DEADBEAT CROSSING THE PATH OF A STINKING POLITICIAN LOOKING TO BUY A VOTE!!!!!!!!!

[berdie]

berdie...
I'm not saying forgive it. I'm just suggesting a refinance.


First, they in fact signed a contract.  No one put a gun to their head, did they?  No!  And refinance, with higher interest rates existing today?  Brilliant!  What is your degree in, basket weaving?

When they applied for the loans, they were adults, not ten year olds.  I am tired of hearing the 18-30 year olds today are not mature enough.  That is flat out bogus.  Talk about being woke!

Accountability, how about  dose of that?  For you and all these jerk offs that think the taxpayer has nothing better to do than pay for their decisions, good or bad.  No thank you.

If this is what is going to happen, perhaps the time has come to END STUDENT LOANS.  Let them work to earn the money and then go to school. 

I AM TIRED OF THE TAXPAYER BEING EXPECTED TO PAY THE TAB FOR EVERY DEADBEAT CROSSING THE PATH OF A STINKING POLITICIAN LOOKING TO BUY A VOTE!!!!!!!!!

Darn, did you wake up on the wrong side of the bed this morning @jafo2010 ? lol The personal attacks seem a little extreme for a simple difference of opinion.

Frankly, a basket weaver doesn't need a degree. They could very well parlay that talent into a viable business and not be thousands of dollars in debt.

The Feds could set the terms of a refi how ever they choose. They could at least recover the debt instead of a "bad debt write off" in order to buy votes.

I get annoyed, as well, over the lack of maturity but it is what it is. It's more of a societal issue and the subject for another thread.

I hope the rest of your day went a little better. Signing off on this topic now.

[roamer_1]

make the colleges, many of whom led starry-eyed kids with heads full of mush... led them kids right down the garden path, and left them the bag holders... Let the colleges eat that debt, and watch what happens.

[berdie]

make the colleges, many of whom led starry-eyed kids with heads full of mush... led them kids right down the garden path, and left them the bag holders... Let the colleges eat that debt, and watch what happens.

 :beer:Also a viable solution.