Biden overstepped his authority and SC stopped loan forgiveness

[GMDino]

(07-03-2023, 10:15 AM)KillerGoose Wrote: I think we have a misunderstanding of what is going on. Biden isn't forgiving loans (yet, I think he is still trying). The link that I posted is some modifications to how those loans are paid back in order to make it easier on borrowers. Here is the information...


So, it is an income-driven-repayment plan. Basically, there is a threshold where if you make too little money, your payments are "paused". For those who can make payments, the minimum amount to pay has been reduced. The forgiveness window has been reduced from 20 years to 10 years (this window already existed, mind you - this type of "forgiveness" has been happening for as long as I can remember. Biden just reduced the time period). 

That is why I believe that this should be a pretty popular reform. It is addressing some of the underlying issues instead of a forgiveness plan. I do think this is part of the answer, long-term. 

The other thing this gets at is something most of us agree on:  The student loan issue goes far beyond just who borrows what and how they'll pay it back.  There are multiple issues at work here from the institutions to the banks to the government to interest rates, etc.

Just forgiving loans isn't enough.  The system needs reworked.