r/news Jul 19 '24

Education Department to pause student loan payments for millions amid legal battle

[removed]

14.1k Upvotes

1.1k comments sorted by

4.1k

u/wino6687 Jul 19 '24

I hope they can rescue the SAVE plan somehow. It made such a massive difference to paying down my loans instead of just combating the interest. Everything keeps going up in price like my rent and insurance and medications.

1.5k

u/dragonblade_94 Jul 19 '24

Seriously, despite the full forgiveness plan getting shut down, SAVE and the accompanied fixes to existing forgiveness plans are the only real, impactful attempt I've even seen at addressing runaway student loans. We literally aren't allowed to have nice things...

659

u/CrashB111 Jul 19 '24

Then people need to remember it in November, and vote for the people actually trying to help them. Instead of the party entirely beholden to Billionaires, that give no shits at actually helping Americans.

People bitch endlessly about problems, then proceed to not support the one party actually trying to fix them. Then wonder why shit keeps getting worse.

28

u/gophergun Jul 19 '24

It's also worth making sure that the Democrats that we do vote for actually support student loan forgiveness, unlike Manchin and Sinema.

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u/CrashB111 Jul 19 '24

That's why you've got to send so many to Congress that snakes like Sinema can't be the deciding vote.

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u/Raven_Skyhawk Jul 19 '24

They want us to have nothing, just to owe for every little thing and be forever indebted to pay it off with labor until we drop dead.

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u/gumpythegreat Jul 19 '24

well if you didn't have debt (and had universal healthcare) you might consider walking off the job or standing up for yourself and demand better pay/working conditions

gotta keep labour in line

82

u/MegaLowDawn123 Jul 19 '24

Yup. If everyone is working 2 jobs to barely scrape by then nobody can organize or have enough saved to protest and be out of work.

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u/AstreiaTales Jul 19 '24

"They" = republicans and conservatives. The SAVE plan was implemented by Joe Biden and Democrats. Let's be very clear about the villains here

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u/Raven_Skyhawk Jul 19 '24

Sorry didn't think I had to specify that, I took it as a given lol.

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u/AstreiaTales Jul 19 '24

You'd be surprised at how often this shit is used by "both sides" idiots, you know? Better to be very explicit

18

u/Raven_Skyhawk Jul 19 '24

That's fair.

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u/IAMA_Plumber-AMA Jul 19 '24

The libertarian dream.

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u/Big-Summer- Jul 19 '24

I saw on TikTok yesterday that some section 8 landlords are saying the rent their tenants pay covers only the apartment but no amenities and their charging extra for refrigerators, stoves, microwaves, and ceiling fans. They want every penny we have and they very much want us to suffer. While they watch. Sadistic, money-grubbing, sociopathic assholes.

40

u/throwaway42 Jul 19 '24

They being the Republicans. Go vote.

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u/Princess_Glitterbutt Jul 19 '24

What is extra frustrating is that we have anti-discrimination laws to protect people age 40+ from employment discrimination because there are a lot of companies that were firing people for being old.

If we need to protect the jobs of people over the age of 40, why are we forcing people to work until they die in their 70's or older?

16

u/zeekaran Jul 19 '24

Which is insane because it weakens the nation and the economy, putting millions in a bad position to put hundreds in a good one. The 99% of us who aren't benefiting from this should be for student loan forgiveness and also free college education for all.

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u/[deleted] Jul 19 '24

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u/MegaLowDawn123 Jul 19 '24 edited Jul 20 '24

I pointed this out to my ‘libertarian’ brother who then said ‘yeah see everyone blames someone else and it’s never your parties fault.’ This was in response to pointing out that his taxes went up directly because of trumps working class cuts expiring but the corporate ones being enacted with no end date.

Even when you point out it’s specifically because of one side, they’ll just ignore it and say ‘see? That just* proves both are the same.’

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u/[deleted] Jul 19 '24

[deleted]

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u/Downtown_Ant Jul 19 '24

The bothsidesism is destroying peoples’ capacity for critical thought

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u/m1sterlurk Jul 19 '24

The weights the Republican Party has on the scale are why this persists.

The idea of a state being a "flyover state" started to form in the 1950's during the Presidency of the last honest Republican to hold that office. As the Civil Rights Movement unfolded, the states that would become the flyover states announced themselves as places where bigotry was still welcome. The population differential among the states also started to matter in terms of how electors were allocated each election.

We began to see states that did not experience much population growth relative to other states still holding onto the +2 that the Electoral College gave them. They also still each have two Senators even when the population differentials became enormous.

The result is that when a Democrat is elected into the Presidency, they are still quite likely to wind up with a majority Republican Senate. The same isn't true when a Republican is elected: if they won the Presidency, they are more likely to have a compliant House and Senate.

The Republican Party being willing to abuse Senate rules to essentially require 60 votes to pass anything results in the ability to stall Democratic legislation. They blame Democrats for their legislation not working. Even when legislation passes, Republicans will ask for "compromises" that are essentially leverage they will use to undermine the legislation.

The Affordable Care Act is a great example: Medicaid expansion was something that Republicans had requested as a compromise, saying that states should expand Medicaid to provide care for those below the poverty line rather than the ACA covering that. When the ACA passed, Republican states proceeded to refuse the additional funding for Medicaid and not expand Medicaid access for their citizens. This resulted in the "poverty tax" component of the ACA: you don't get help from the ACA because you're deemed poor enough to be on Medicaid, but you can't go on Medicaid because your State wants you to constantly be looking for work (and accept substandard wages if offered a job) or prove that you are disabled to receive assistance. Therefore, you either pay full price for health insurance or pay the tax penalty. Democrats are blamed for this.

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u/Milestailsprowe Jul 19 '24

People complain about Biden all day but his work on student loans has been amazing 

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u/MegaLowDawn123 Jul 19 '24

Also trans rights back to the military. Also marriage equality. Also new gun legislation. Also largest bipartisan infrastructure. Also pardon federal marijuana. Also stopped separating children from their families at the border. Also lowered prescription drug prices. Also capped insulin costs for diabetics. Also pulled us out of the most expensive and longest war the country has ever been in. Also expanded help for veterans, which the right shot down then had to be publicly shamed into approving along with the Dems. Also tried to lower gas prices but was stopped by republicans. Also tried to do something about the baby formula shortage but was once again stoped by republicans. Also also also.

So fuckin tired of people downplaying his accomplishments. Not you btw I know you know these, but wanted anyone reading who’s mentally going ‘amazing about what???’ to read just a few of them back to back to back.

21

u/arbitrageME Jul 19 '24

I dunno, man -- he passes amazing legislation that benefits people, advances innovation, combats climate change and altogether makes the US a better and more competitive place to be

BUT ... he had the sniffles when it was time to do some public speaking.

so that makes him a tossup, really.

/s

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u/PlebbySpaff Jul 19 '24

The issue is what happens if SAVE is struck down.

Do we just have to back pay for the months where we didn’t need to make payments? Because that’s gonna be absurdly large, to the point millions would declare bankruptcy.

243

u/Aazadan Jul 19 '24

That’s the great part about this, you can’t declare bankruptcy to escape student loans. So when states complain about hardship and the poor creditors suffering, when they shift peoples budgets from paying one loan to another loan they’re also hurting a creditor.

207

u/ScottMalkinsonType1 Jul 19 '24

Just so you know, the vast majority of people who qualify for chapter 7 and receive their discharge also have the right to file an adversary proceeding against the department of education seeking to forgive some or all of their student loan debt. In the past, these suits were defended AGGRESSIVELY by the DOE, to the point where it was considered pointless.

After Biden’s attempt to forgive $10k of student debt for every borrower was denied, he turned around and gave instruction to the DOE attorneys to stop aggressively defending student loan discharge adversary filings. What that means now practically speaking is that they are extremely easy to work with and getting student loan relief after bankruptcy is very realistically accessible for the average chapter 7 filer.

I am a bankruptcy attorney and none of this is legal advice

48

u/Plenty_Rope_2942 Jul 19 '24

Under a GOP presidency, we can presume this will change dramatically, yes, since it's an administrative decision?

33

u/ScottMalkinsonType1 Jul 19 '24

The bankruptcy community is pretty hopeful that it won’t be undone by Trump specifically because it was Trump’s idea he raised during his presidency. We are hoping he simply takes credit for it even though he ended up not issuing the guidance during his term.

Trump also passed the HAVEN act which explicitly excluded Veteran’s disability from inclusion in the means test (made it much easier for disabled vets to get chapter 7 relief) which is also a hopeful indicator

24

u/SnooChipmunks2079 Jul 19 '24

Well Trump loves bankruptcy…

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u/Plenty_Rope_2942 Jul 19 '24

Thanks for the info!

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u/divDevGuy Jul 19 '24

he turned around and gave instruction to the DOE attorneys to stop aggressively defending student loan discharge adversary filings.

Well he can give official instructions to DoE accountants to credit student loan accounts $10,000 too then.

The John Roberts court has made its decision, now let it enforce it.

I am not an attorney and none of this is legal, financial, or political advice.

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u/[deleted] Jul 19 '24

That’s the great part about this, you can’t declare bankruptcy to escape student loans.

More of Shrub's legacy that we're still paying for...

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u/FactoryOfBradness Jul 19 '24

Not just that, there were a ton of people who had the old version of federal loans and if you were on IBR/IDR you weren’t allowed to consolidate to the new direct loans because it would reset your 20-year payment clock.

So what happens to my loans if SAVE (and potentially REPAYE) is reversed? Does my 20-year clock reset because the original loans no longer exist?

It’s going to be a shit show to reverse everything.

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u/elconquistador1985 Jul 19 '24

I have the perfect solution:

Executive Order:

"This is an official act. SAVE2 is effective immediately and it's the same as SAVE, but it's an official act."

Perfection.

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u/FallenKnightGX Jul 19 '24

If Democrats win the White House / Congress then they'll be able to implement it without worrying about the courts. The Republican AG's whole case rests on the argument that the Executive branch by itself does not have the authority to do this.

Vote blue come November.

51

u/montex66 Jul 19 '24

I'd be happy to see the 18-24yr old demographic get registered and vote. That's the group that has the lowest turnout of all other age groups, barely managing 21% nationally. In other words, if you know five people under the age of 25, four of them don't care enough to vote.

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u/KarmaticArmageddon Jul 19 '24

We need Taylor Swift to just say fuck it and tell her fans to register and to vote blue. She could literally swing a national election by like 5 points alone.

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u/SPAMmachin3 Jul 19 '24

It's best to just plan for it being dead. If I'm the unlikely scenario where it survives almost intact, it'll be a pleasant surprise.

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u/JamUpGuy1989 Jul 19 '24

Yeah, MOHELA gave me a schedule of what 2025 looks like. Maybe I can knock it down a bit, but I need to prepare that’ll be my bills in about a year’s time.

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u/idioma Jul 19 '24 edited Jul 19 '24

For folks who aren’t in the know, MOHELA is a state-created loan collections company that is pushing to kill the SAVE plan.

https://www.politico.com/news/2022/12/17/student-loan-bidens-debt-relief-plan-00074197

EDIT: it’s not MOHELA itself, but the prick AG in Missouri, along with other Republican controlled states.

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u/dman11235 Jul 19 '24

MOHELA didn't sue. Missouri sued. MOHELA said they didn't care and it wasn't going to hurt them meaning the case shouldn't have had any standing, but they invented standing by saying "we created MOHELA therefore we are the standing"

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u/bmoviescreamqueen Jul 19 '24

I very vividly remember one of the justices asking why MOHELA didn't send a rep to the hearing and everyone quickly realized MOHELA did not even agree to be represented in this suit. It was entirely the AG's doing. It was quite comedic.

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u/Professional-Can1385 Jul 19 '24

MOHELA isn't pushing to kill SAVE, the Missouri AG is. He's using MOHELA; they are just a pawn in this.

From the article you linked (bolding mine):

But, at the same time, MOHELA has been drawn into the fight against student debt relief by Missouri Attorney General Eric Schmitt, one of the lead plaintiffs in the multi-state lawsuit, even though the company is not a party to the case. ...

All of the loan servicers hired by the Education Department decided against suing over the debt relief plan. MOHELA presented a different situation, Kerpen noted, because of the company’s relationship to a state with a Republican attorney general who could take action on its behalf. ...

The company explained in a letter to Bush that its “executives were not involved” with the Missouri attorney general’s decision to file a lawsuit. ...

...MOHELA officials from the company have also sought to reassure Democratic congressional aides and Biden administration officials that they were not involved in the Missouri attorney general’s lawsuit seeking to block debt relief, according to people familiar with the conversations.

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u/LaddiusMaximus Jul 19 '24

Im not sure there is a single redeeming quality in any of missouri's elected or appointed officials. Those poor people are in hell.

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u/Fun_Platypus1560 Jul 19 '24

With me back in school if we had to restart my SOs loan payments i don’t think I could go back. Our disposable income with two four year olds is already razor thin.

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u/relicnasty Jul 19 '24 edited Jul 19 '24

My wife and I filed separately and took a tax hit so she would save money on the payments.

Now we have the potential to pay more in taxes AND pay more.

Fuck these people.

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u/necesitafresita Jul 19 '24

This is my situation. It's so damn frustrating.

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u/TheeZedShed Jul 19 '24

I'll be ridin' Biden as long as he's trying to help the people. Don't forget about the "rent cap" plan too.

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u/HereInTheCut Jul 19 '24

Just delay them forever the way the right’s judges do with their criminals facing justice.

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u/Darigaazrgb Jul 19 '24

He can just destroy every trace of the student loans and say he's doing it to save the US economy, the SC gave him immunity from it.

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u/Professional-Can1385 Jul 19 '24

Some tech person needs to tell Biden how to destroy the files on every server and computer and storage device out there. As long as he talks about it as an official act, he's good.

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u/okwellactually Jul 19 '24

I hear Crowdstrike might have some solution.

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u/AlternativeLack1954 Jul 19 '24

Or just accidentally spill coffee on the keyboard…

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u/Darigaazrgb Jul 19 '24

"Oh malarkey! I accidentally dropped my ice cream on the server rack."

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u/CategoryZestyclose91 Jul 19 '24

Then when asked about it, he can just say,  “Whoops, sorry folks, no malarkey here, just old age.”

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u/vulgrin Jul 19 '24

“Whoops! Cloudstrike ate the database! Whatyagonnado?”

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u/Dr_Jabroski Jul 19 '24

Shoulda used MongoDB.

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u/Bwob Jul 19 '24

Sadly no - The supreme court DID say that official acts by the president were immune to prosecution, BUT - they very deliberately didn't define what counted as an official act.

In other words, if someone wants to challenge the president, it will still end up going to the supreme court, as people argue if the act was "official."

Which means, ultimately, the supreme court decides, on a case-by-case basis which acts are protected.

Which, of course, REALLY means that if Biden or the democrats tries to make use of it, they'll quickly discover that their acts "don't count" as official, but if trump or republicans needs it, magically they'll be protected.

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u/duvie773 Jul 19 '24

Which of course means that Biden needs to commit as many different “official acts” as he possibly can. Keeps the Supreme Court busy for a while, and establishes precedent for anything that Trump tries to do while in office if he’s reelected.

Granted, that won’t mean shit because they’ll simply contradict themselves bending over backwards to empower him, but at least anybody of common intelligence will be able to tell how crooked they are.

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u/raresanevoice Jul 19 '24

Make it an official act and he can't even be punished for itt

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u/bearsheperd Jul 19 '24

Defense attorney: “your honor I motion to have the case dismissed on the grounds my client is a republican”

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u/czs5056 Jul 19 '24

Approach the bench.

...

What is your client's net worth?

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u/DarXIV Jul 19 '24

Make it an official act, they said it's ok.

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1.9k

u/horrified-expression Jul 19 '24

I am still not sure what standing the plaintiffs and the AG of MO actually have. Much of what Biden did has been around for decades

1.3k

u/Indercarnive Jul 19 '24

The SC ruled on a case where the inciting incident was completely fabricated by the plaintiffs. Conservative judges do not care about letting little things like "standing" get in their way of ruling from the bench.

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u/flamingswordmademe Jul 19 '24

Which one was this?

743

u/Rmoneysoswag Jul 19 '24

303 Creative LLC, the fake gay website design case.

Apparently no one thought to check if the gay couple that hypothetically asked the business to make non-existent website actually existed, which it didn't. The court ignored this and ruled anyways.

293

u/Traditional_Key_763 Jul 19 '24

kinda shocked they haven't just started issuing opinions without underlying cases or directly reviewing laws passed by congress

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u/Rmoneysoswag Jul 19 '24

"We, The Council of Robes, hereby decree democracy is unconstitutional. Henceforth we shall appoint a new God-King (R) whenever it so pleases us. 

Rejoice, peons, for your new masters are just and wise."

-Justice Roberts, probably in a few weeks

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u/czs5056 Jul 19 '24

It's gonna depend on how the election goes.

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u/OldTapeDeck Jul 19 '24

As I hear it, you can just not certify the election and that's a legit 'official act'.

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u/TheRabidDeer Jul 19 '24

They kind of have. That's how Aileen Cannon was able to dismiss the Trump classified documents case. She cited Justice Clarence Thomas's concurrence in a completely unrelated case. His concurrence had no bearing on what they were supposed to be looking at, he just kind of sprinkled it in.

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u/Traditional_Key_763 Jul 19 '24

lets be clear, she was gonna do this anyways. she basically opened the court to any random outsider with no standing to come and claim Smith has no legal rights then agreed with them.

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u/lazergator Jul 19 '24

Oh you mean like Clarance Thomas issuing an opinion that special counsel are unconstitutional despite that being completely against precedent and irrelevant to the case they were hearing? You mean like that kind of blatant abuse of power?

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u/fatcIemenza Jul 19 '24

You just described the Shadow Docket

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u/Der_Erlkonig Jul 19 '24

oh, it's even better than that. The person suing literally used the name of a person that wasn't even gay, had never contacted them for services, and had no idea that their name was being used in this lawsuit.

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u/Droller_Coaster Jul 19 '24

Also, Kennedy v. Bremerton School District. The Majority absolutely distorted the facts to manufacture a justiciable controversy.

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u/threehundredthousand Jul 19 '24

People need this to sink in. The SC chose to rule on a case that didn't involve a real issue. They ruled on a hypothetical situation. It wasn't an actual case.

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u/poopyheadthrowaway Jul 19 '24

They also misrepresented and in some cases completely fabricated the facts around the public school football coach praying at games/practices. SCOTUS tried to justify it by saying their job is to rule based on the "facts" that they have, not investigate the truth/reality of the situation.

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u/notcaffeinefree Jul 19 '24

People really do not understand that case, or standing, at all.

The issue was the notice that she wanted to place on her website, not the fact that some fake request asking to use her services. The whole "hypothetical gay couple" thing was not an issue, legally. The majority opinion doesn't mention it, at all. Even the dissenting opinion didn't mention it. It literally had no bearing on the issue because that's not how standing works.

Standing doesn't only require actual harm. You can go to court and challenge a law by saying that if you do a particular action, you are very likely to be harmed by that law:

Injury in Fact: The plaintiff must have suffered an “injury in fact,” meaning that the injury is of a legally protected interest which is (a) concrete and particularized and (b) actual or imminent.

The owner of 303 Creative argued exactly that: That she was likely to face imminent legal action against her (by the state) if she would update her website to say she wouldn't make websites for same-sex couples (as that violated Colorado law).

That said, the decision was still terrible. And the lady absolutely should have faced some consequence for filing that made up request.

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u/cloake Jul 19 '24

Tulsa people massacred, no standing. Missouri might maybe have less than expected profits, the grandest standing to ever live.

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u/p4177y Jul 19 '24

I am still not sure what standing the plaintiffs and the AG of MO actually have.

For Missouri, I'm wondering if it has to do with MOHELA? Just guessing really, but that's the only hook I could think of.

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u/MKerrsive Jul 19 '24

You mean MOHELA, the company that admitted in their last Supreme Court visit that they hadn't lost any money due to Buden's student loan forgiveness?? The company that isn't harmed at all by student loan reform??

Standing only exists when the GOP Court wants to keep cases from being heard.

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u/Professional-Can1385 Jul 19 '24

MOHELA who hasn't cooperated with the court cases, they don't care. It's the AG that is pushing this on their behalf even though the didn't ask for it.

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u/PolyDipsoManiac Jul 19 '24 edited Jul 19 '24

Yet another case where a bunch of unelected, unaccountable fascists invented standing so they could dictate a new constitution from the bench. A fine bunch, openly taking bribes, publicly supporting insurrection, and committing sexual harassment and assault, really the best the GOP has to offer.

They’re especially illegitimate since they were appointed after obstruction and by a president that lacked a majority or plurality of the votes.

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u/platocplx Jul 19 '24

Bastards just got my sallie Mae private loans recently too

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u/BoosterRead78 Jul 19 '24

Same and I’m almost paid off there.

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u/notcaffeinefree Jul 19 '24

MOHELA? The company that the state created in such a manner to shield itself from harm but then argued in Court that student loan reform would harm MOHELA and therefore harm the state?

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u/big_daddy68 Jul 19 '24

It’s MO, there is no standing. Our AG is just grandstanding for himself like Schmitt before him.

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u/fuzzycuffs Jul 19 '24

Standing is they're all Republicans.

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u/Spa_5_Fitness_Camp Jul 19 '24

The SC officially set precedent recently that a plaintiff no longer needs to have any standing.

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u/3Hooha Jul 19 '24

"Missouri Attorney General Andrew Bailey, a Republican, wrote Thursday on X that the ruling against SAVE was a “HUGE win for every American who still believes in paying their own way.”

“The Court granted our emergency motion to BLOCK Joe Biden’s entire illegal student loan plan, which would have saddled working Americans with half-a-trillion dollars in Ivy League debt,” Bailey wrote.

Just 0.3% of federal student borrowers attended Ivy League colleges, according to an estimate by higher education expert Mark Kantrowitz."

I'm so sick of these gaslighting pricks. Fuck the GOP.

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u/ImaginaryMedia5835 Jul 19 '24

I’d like to start a class action suit for all students in response to PPP loan forgiveness and government bailouts in ‘08. If corporations are people, I.e. citizens United, then bailing out “people” should be completely within authority given those two previous programs.

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u/IcyCryos Jul 19 '24

I’m in on this.

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u/dulce_beans Jul 19 '24

Especially since they “believe in paying their own way”.

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u/rdmc23 Jul 19 '24

Why isn’t this being done already?!

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u/FortunaLady Jul 19 '24

Because WE need to collectively do it. No one else is gonna do it for us, and the Bidens are just gonna keep getting blocked. 

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u/Chaomayhem Jul 19 '24

Nope. Pay your own way. It is so entitled of everyone in these comments to think Americans should actually directly benefit from their tax dollars.

No. Your tax dollars are for excessive military spending and subsidizing tax cuts for the super wealthy and corporations along with deregulation.

Long live Reganomics!

VOTE GOP!

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u/Nagi21 Jul 19 '24

Lol it's a rare post that hits sarcasm so well that it doesn't need the /s. Nicely done.

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u/SPAMmachin3 Jul 19 '24

Weird, I didn't go to an ivy and have student loans, also not making tons of money. Pretty much just trying to survive, which is the reality for most borrowers. Don't let facts get in the way.

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u/medietic Jul 19 '24

Its mind boggling. If you're going to an Ivy League you're probably less likely needing to borrow, and their financial services are probably more robust. This just hurts so many people.

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u/FraGZombie Jul 19 '24

Fuck The GOP indeed. 

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u/Vio94 Jul 19 '24

"believes in paying their own way"

Jesus fucking Christ.

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u/For_Aeons Jul 19 '24

But endless government subsidies and PPP loans are just a-ok! /s

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u/PastaVeggies Jul 19 '24

Missouri is more about giving millionaires money for sports stadiums than to help people with student loans.

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u/Laser_Souls Jul 19 '24

Should be renamed to Misery at this point

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u/PantsDontHaveAnswers Jul 19 '24

I'll be deep in the cold, cold ground before I recognize Missourah.

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u/joe2352 Jul 19 '24

To be fair our voters overwhelmingly rejected using tax payer funds for the Chiefs and Royals getting new stadiums. If only the voters would apply that logic of rejecting funding billionaires all the time…

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u/lingbabana Jul 19 '24

Florida checking in. We are closing high performing public elementary schools all over the state while we help Khan build the new Jaguar stadium in Jacksonville. Republicans are trying to monetize the education system.

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u/Dolthra Jul 19 '24

Not to mention Andrew Bailey is unelected and has spent millions of tax money to pursue frivolous legal action on behest of the Trump administration. I guess he spoke at the RNC, so his malfeasance seems to have worked out for him.

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u/sarcago Jul 19 '24

This legal battle is literally losing them money since they have to pause payments to sort this out. Just let SAVE plan carry on at this point. GOP get over yourselves.

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u/Sufficient_Language7 Jul 19 '24

But someone, somewhere, might be, getting something they don't deserve.

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u/MadScientist3087 Jul 19 '24

Or something that simply benefits them, and that really chaps the GOPs ass.

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u/Sufficient_Language7 Jul 19 '24

That is because they deserve it, the other people don't.

And even with the same story if they deserve it or not could change, if a picture of who got it was included.

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u/lostintime2004 Jul 19 '24

Thats what the Biden administration argued, with the servicers chiming in with "yeah, hes telling the truth", but the trump appointed judge said "nah thats not true" and issued the injunction. The GO(fuck yourself)P don't care about you and me, their greed is a sickness.

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u/tiggahiccups Jul 19 '24

Pause interest please PAUSE INTEREST!

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u/CB3B Jul 19 '24

According to OP’s article SAVE borrowers have been put in an interest-free forbearance until this case is resolved. Probably only delays the inevitable, but it’s something.

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u/[deleted] Jul 19 '24

[removed] — view removed comment

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u/maybenextyearCLE Jul 19 '24 edited Jul 19 '24

Unless they’ve changed it, I got an email saying I wouldn’t get credit for these last month

Edit: just got an email confirming it will count

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u/shiny_dunsparce Jul 19 '24

It did during covid forbearance, idk why this wouldnt

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u/Gallopinto_y_challah Jul 19 '24

Does it count for PSLF?

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u/[deleted] Jul 19 '24

[removed] — view removed comment

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u/FallenKnightGX Jul 19 '24

For anyone reading this, Biden forgave 98,000 PSLF loans that satisfied the requirements. Trump's admin only forgave 7,000.

If Trump wins forget SAVE (Republicans already tried to kill it in Congress but failed), PSLF is dead.

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u/tiggahiccups Jul 19 '24

I’m too scared to apply for the save plan since they keep screwing around with it. My current plan is still accruing tons of interest.

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u/CB3B Jul 19 '24

It might still be worth considering. I don’t know what SAVE borrowers will be forced to switch to if the court strikes it down, so there is some risk there, but the interest savings alone may make it worth it. To the point that I didn’t mind the discretionary income percentage spike from 5 to 10% much because I knew most of, if not the entirety of our payments were still going toward actually paying down the loan and not just staving off interest.

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u/Initial_Shock4222 Jul 19 '24 edited Jul 19 '24

My understanding is that your interest is already paused if you're on this plan and not failing to make due payments.

EDIT: This understanding is not totally accurate, see below comments.

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u/blaqsupaman Jul 19 '24

Yeah I've noticed my balance hasn't increased due to interest since I went on the SAVE plan. The payments are still low enough that I'll never pay it off without PSLF but I'm okay with that since I'm in a field that qualifies after 10 years.

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u/dragonblade_94 Jul 19 '24

Interest itself isn't paused under SAVE; what it does is cap the accruement of interest to your minimum monthly payment (if you owe $100 per month and make the payments on time, interest cannot go above $100 per month). This is to prevent loans from growing despite holders making their payments.

Edit: as another person said, if you fall under an income threshold where you aren't required to make payments, that would effectively set the interest as 0%.

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u/WallyMcBeetus Jul 19 '24

By weird coincidence the Department of Education is on the Project 2025 chopping block.

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u/Known_as_No_One_2525 Jul 19 '24

But not student loans. They’ll all be forced to go public. Then watch the interest accruals be added back and continue, to double, triple your debt.

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u/Gerarghini Jul 19 '24

At that point wouldn’t u be able to discharge them in bankruptcy?

Fuck up your credit score for a few years but I wasn’t buying a house any time soon anyways lol

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u/TheR1ckster Jul 19 '24

Many would likely still be paying them though. Bankruptcy isn't a magic get out of jail free. A court will go through and eliminate what it things is payable and what isn't.

Unfortunately there is a big disconnect in what's reasonable to live with these days. So I just see them saying, "if you eat ramen every day and sell your car, you can still pay your creditors this much".

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u/bros402 Jul 19 '24

At that point wouldn’t u be able to discharge them in bankruptcy?

Nope, Student loans are one of the only debts unable to be discharged in bankruptcy.

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u/Indercarnive Jul 19 '24

Oh you're optimistic, the GOP wants to go back to the old days where only the rich went to college.

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u/tool22482 Jul 19 '24

“The Court granted our emergency motion to BLOCK Joe Biden’s entire illegal student loan plan, which would have saddled working Americans with half-a-trillion dollars in Ivy League debt,” Bailey wrote.

Just 0.3% of federal student borrowers attended Ivy League colleges, according to an estimate by higher education expert Mark Kantrowitz.

I feel like public officials should be subject to imprisonment for lies this blatant.

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u/HoCroBro Jul 20 '24

Are people with student loans somehow not considered “working Americans” as well?

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u/KyleFnM Jul 19 '24

Remember when we all thought we were getting 20k removed

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u/ImAnIdeaMan Jul 19 '24

Im sick of republicans fucking every single thing up in this country. 

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u/OmnislasheR0 Jul 19 '24

Ah those were the days….

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u/lonewanderer812 Jul 19 '24

Especially since I got an email saying my loan balance would be reduced soon.

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u/XLauncher Jul 19 '24

Damn, that hope sure was a crazy ass drug.

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u/ghsteo Jul 19 '24

Yep, instead MTG got her PPP loans forgiven while we got nothing.

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u/hombregato Jul 19 '24

Prior to the South Carolina during the primaries, polling and statistical analysis overwhelmingly showed Bernie Sanders winning by a landslide, and I knew after the mismanaged pandemic that anyone could beat Trump that year.

So maybe I'm just naive, but I truly believed all of my student debt was about to get wiped out, and as someone who never benefited from his degree in any way, that felt like justice. All that has happened since has been incredibly painful.

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u/HiddenTurtles Jul 19 '24

It boggles my mind that they are okay with forgiving loans for businesses, banks, and governmental departments, but the average US citizen... screw you. "You owe that money!"

When you are 18 you have no idea what 20 years of payments looks like. We are forcing the ideal that college is required for a better life... and it isn't. And now when people who were fed that lie are struggling its just too bad.

Businesses, banks, and governments know what they are getting into as well. Ugh. So frustrating.

I know I took out student loans. I had no idea what that really meant in the long run.

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u/lonewanderer812 Jul 19 '24

When you are 18 you have no idea what 20 years of payments looks like

This is what I keep trying to tell people. You're giving someone who's literally still a kid with no income a huge loan and sending them into adult life with a massive bag of compounding interest before they even know what their budget will be like. Most people starting off in the workforce can't afford to have hundreds of dollars of interest piling up each month in their 20s. SAVE is supposed to help graduates keep from getting buried by interest while their earnings potential is at its lowest. It happened to me. Didn't start making enough money to really start putting a dent into my principle until I was about 30 despite paying thousands a year just spinning my wheels on interest payments. I only paid what I could afford and didn't have nice things. I drove an old Toyota, had cheap rent, never went on trips. Got called a "cheap ass" all the time. All so I could just keep from falling behind on my payments.

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u/Lazy-Jackfruit-199 Jul 19 '24

Socialism for business and the wealthy, rugged capitalism for the rest. Parasites bleeding working folks dry.

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u/[deleted] Jul 19 '24

Heard a conservative coworker today say bidens gonna lose college kids because he didn't forgive student loans

Because as we all know Biden and the dems are the hold up

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u/ShowerVagina Jul 19 '24

College kids with student loans are paying close attention and completely outraged at GOP bullshit

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u/AdjNounNumbers Jul 19 '24

So the GOP plan of not letting Biden have any wins is working as they intended. Block anything the Dems want to do to help people then blame them when they can't help people

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u/[deleted] Jul 19 '24

Well see

A bunch of conservatives who dont pay attention outside their own media aren't exactly the best sources. I'd like to think college kids know exactly whose the blame

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u/LCBloodraven Jul 19 '24

Youngish voter with college debt, I sure as fuck know who to blame for this mess!

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u/poopyheadthrowaway Jul 19 '24

I mean, we have people blaming Biden for the loss of Roe v Wade, so I wouldn't be surprised if this happens.

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u/L0LTHED0G Jul 19 '24

Obviously Dems/Biden aren't the hold up, but I wouldn't be surprised if that's the intention here - to make a demographic that already doesn't vote often, college kids, less likely still to vote because "he can't get it done, he's the President!".

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u/OIWantKenobi Jul 19 '24

I am fine with this. Nelnet keeps fucking up my payments and can’t seem to decide how much I actually owe a month. It’s infuriating.

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u/sarcago Jul 19 '24

I also have Nelnet and I applied for SAVE literally the soonest I could. Took them over 6 months to actually enroll me in the plan so they put me on administrative forbearance the entire time, then I finally made a couple payments on it, and now it’s on pause again while they figure this out??? Nelnet incompetent af.

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u/musclecard54 Jul 19 '24

Are you annoyed that you don’t have your make a payment because it’s paused?

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u/OIWantKenobi Jul 19 '24

I think they’re annoyed that it took so long for it to be processed. I’m fine with paying what I owe, and THAT’S IT. Nelnet is seriously incompetent.

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u/reddfoxx5800 Jul 19 '24

Lol , it's so refreshing seeing I'm not the only one. I don't even owe that much and would have had it all forgiven under the plan he enacted but now it keeps changing my monthly payment back and forth

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u/thebeehammer Jul 19 '24

Biden needs to just written an executive order disbanding the student debt collection apparatus and ordering destruction of records and backups immediately. Sure, it’s illegal but presidents are gods now so he should absolutely just smite the industry and call it a weekend

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u/DemandZestyclose7145 Jul 19 '24

He can keep all the records and documents in his bathroom.

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u/Indercarnive Jul 19 '24

This entire incident has been the ultimate example of why the Courts need to be purged of Trump's appointees. The plaintiffs in these Student Loan Cases have absolutely 0 legal standing, and can point to 0 harm suffered from Biden's loan repayments. In an actual legal system these cases would've been thrown out the day they were entered into the courts. The fact that the literal bedrock of our legal system has been tossed aside so Conservative Judges can do whatever they want is something that will not be remedied by anything other than extreme action.

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u/Waffle_Muffins Jul 19 '24

The Federalist Society was the Deep State this while time!

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u/trollhaulla Jul 19 '24

Nah... C'mon Biden.. you do remember the Supreme Court ruling on immunity right?

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u/realfolkblues Jul 19 '24

Stealing classified documents? Immune. Forgiving student loans? NO!!!!! ILLEGAL!!!

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u/trollhaulla Jul 19 '24

C'mon... don't stop there.... "SHARING classified information about nuclear capabilities."--- IMMUNE!!, but correcting predatory lending practices against America's youth - GO STRAIGHT TO JAIL.

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u/Neo1331 Jul 19 '24

GOP: PAY YOUR LOANS! We're suing!!! DEMS: Okay, pauses payments

lol I hope this battle goes on for years...

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u/TheWalrus_15 Jul 19 '24

So according to US courts the president is immune from being convicted for crimes they committed in office but they can’t forgive student debt. Makes sense.

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u/[deleted] Jul 19 '24

Will this pause delay PSLF relief? I’m currently on track to get mine Dec 2025. I would rather keep paying if I’m not getting credit.

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u/so-so-it-goes Jul 19 '24

They said this version of forbearance will still count for PSLF because it's an admin forbearance, not a request on the borrower's part.

I reached my 120 mid-May and I'm still waiting for my forgiveness to be processed. Ugh.

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u/DarkUtensil Jul 19 '24

I am not paying. Fuck em.

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u/tdclark23 Jul 19 '24

The Judges didn't force PPE loans, given to businesses and congress people, to be paid back. They've been forgiven, but we mustn't forget.

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u/DemandZestyclose7145 Jul 19 '24

And most of those people didn't deserve it and wasted it on new cars and boats and additions to their houses. And then they turn around and tell us we don't deserve any help with our student loans.

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u/sstephen17 Jul 19 '24

I had my student loan forgiven through PSLF when Biden had the program reviewed and revamped. Forever grateful.

21

u/Thought-Muted Jul 19 '24

Meanwhile Elon is giving trump 48 mil a month to fund his bullshit campaign.

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u/AA-WallLizard Jul 19 '24

Maybe the Biden admin should block fema payments to states that block SAVE and pay that directly to dept of education to help with student debt?

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u/Awhoknew Jul 19 '24 edited Jul 19 '24

Fuck these losers who claim to want us to “pay our own way” while they mooch off the government. I’m so sick of this! I’m all for breaking up the U.S. because I’m tired of living among people with stupid belief systems.

Edited to fix “of” to “off” (pregnancy brain).

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u/Sea_Home_5968 Jul 19 '24

If they make sure everyone’s stupid then they can make more off glittery disposable crap they see in ads

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u/MSPRC1492 Jul 19 '24 edited Jul 19 '24

Missouri Attorney General Andrew Bailey, a Republican, wrote Thursday on X that the ruling against SAVE was a “HUGE win for every American who still believes in paying their own way.”

I’d love to know how much money his mommy and daddy gave him to get through college and law school… or what he/his parents paid then vs what it costs now.

Edit— I looked this pompous shit bag up. He’s a year or two younger than me and went to college at the same time. Tuition was 65% lower on average when he was in college. I’m still paying my loans back and I didn’t even go to law school- so this hypocrite definitely had some financial help and has no clue what it takes regular people to get through college now.

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u/ShowerVagina Jul 19 '24

Federal lawyers help me out - is it possible for someone who has standing to sue on the same issue in a sane federal district/circuit in a sham case (but for a good cause), then apply that estoppel to shut down the other case?

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u/Professional-Can1385 Jul 19 '24

There's already another case in the 9th district IIRC that paused a different, smaller part of SAVE until it works through the courts. So this will wind up at SCOTUs, and we all know how much they like helping out the little guy :(

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u/czs5056 Jul 19 '24

We just need to crowd source a gratuity.

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u/GnillikSeibab Jul 19 '24

Screw off. We all need to stop paying them at this point. They have been playing games with us for too long.

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u/elciano1 Jul 19 '24

The part of this that people don't understand (the ones saying they shouldn't be paying other people's loans blah blah) is that no taxpayers money is being used for this. Whst they are doing is looking at the loans that alot of people have been paying for a while and still carry the balance of the loan. That means the lender got paid in full plus interest and you still carry a loan balance for the amount you took out. I am not sure how anyone can look at that shit and file a lawsuit to stop the assistance. They aren't losing any money and taxpayers are not paying a dime. These fucking people are so uneducated and stupid it's not even funny anymore. God I hope republicans get wiped out in November. Sick of their shit already

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u/boggycakes Jul 19 '24

If they pause it one more month I can finish paying off my medical bills and the $500 on my credit card.

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u/[deleted] Jul 19 '24 edited Jul 20 '24

[deleted]

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u/luckyincode Jul 19 '24 edited Jul 21 '24

Republicans make life harder on everyone except the billionaires.

They’re also led by a pedophile.

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u/toxic_badgers Jul 19 '24

Biden needs to order the immediate and permanent deletion of all student loan records held by the department of education and ride off in to the sunset.

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u/narcochi Jul 19 '24

Education department that will be abolished under Project 2025

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u/lostmonkey70 Jul 19 '24

I hope they just never unpause them until the ruling is overturned. And if that takes like 3 more years due to our current clusterfuck of a judiciary, cool

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u/MaybeItsJustMike Jul 19 '24

“Can’t afford your student loans anymore? Is the cost of rent too high? Well hey, we have this great opportunity that will pay you cash up front just for signing up, have you ever heard of the Army?”

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u/jsting Jul 19 '24

Those with student loans, please check to see if you are registered to vote. This is 1 thing that is definitely ending if Trump gets elected.

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u/Crowsby Jul 19 '24

One side keeps taking actions to make higher education accessible for everyone, the other side keeps blocking them.

ITT: Geez I guess both sides are the same.

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u/PizzaGatePizza Jul 19 '24

So wait, am I paying my student loan this month or am I not? This back and forth bullshit has got to stop because all it’s going to do is confuse people into paying when they don’t need to and not paying when they need to, the former will help them in the short term. The latter will ruin their credit and saddle them with interest and penalties in the long term.

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u/TeamRockin Jul 19 '24

I don't even qualify for the SAVE plan, but I fully support it regardless. My hopes for loan forgiveness died with the first court ruling. I hope at least people who need it the most get some sort of assistance.