US Biden Won’t Extend Student Loan Relief And Confirms Student Loan Payments Restart February 1 - Melinda Scott on Suicide Watch?

The Biden administration won’t extend student loan relief and confirmed student loan payments restart February 1, 2022.

Here’s what you need to know.

Student Loans​

White House Press Secretary Jen Psaki confirmed to reporters during a press briefing that the Biden administration won’t extend student loan relief — and the student loan payment pause will end January 31, 2022. (No, Biden won’t extend student loan relief again). Here are some highlights from her comments:

• “In the coming weeks, we will release more details about our plans”
• “We will engage directly with federal student loan borrowers to ensure they have the resources they need and are in the appropriate repayment plan.”
• “We are still assessing the impact of the Omicron variant.”
• “A smooth transition back into repayment is a high priority for the administration.”
• “The Department of Education is already communicating with borrowers to help them to help to prepare for return to repayment on February 1.”
• “41 million borrowers have benefitted from the extended student loan payment pause, but it expires February 1, so right now we’re just making a range of preparations.”

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Student loan relief: this won’t sit well with progressives and advocates​

Progressive members of Congress, leading advocacy groups and student loan borrowers have lobbied President Joe Biden to extend the student loan payment pause beyond January 31, 2022. (Here’s a list of everyone who wants Biden to extend student loan relief). They cite potential financial devastation for millions of borrowers if temporary student loan forbearance isn’t extended. Senate Majority Leader Chuck Schumer (D-NY) and Sen. Elizabeth Warren (D-MA) say that 89% of student loan borrowers feel financially unprepared to restart student loan payments. They also argue that nine million student loan borrowers in default will suffer further financial detriment. (5 ways Biden could cancel more student loans). With other U.S. senators, they have pressured Biden to postpone the return to student loan payments for at least several months and at most until the end of the Covid-19 health emergency. Despite these pleas, the Biden administration seems definitively focuses on ending this student loan relief on January 31.

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Student loan cancellation won’t happen either​

Some student loan borrowers have hoped that Biden will deliver a last-minute financial lifeline by enacting wide-scale student loan cancellation. (Here’s how to get student loan forgiveness during the Biden administration). However, there is no indication that Biden will cancel everyone’s student loans. Therefore, don’t expect Biden to cancel student loans before student loan relief ends.

On the contrary, Psaki provided an update on Biden’s actions to date to enact student loan forgiveness. Since becoming president, Biden has cancelled $12.5 billion of student loan debt for approximately 640,000 student loan borrowers. When questioned by a reporter about the Biden administration’s plans to help student loan borrowers, Psaki made no mention of any future plans for wide-scale student loan forgiveness. (How to qualify for automatic student loan forgiveness). Psaki’s posture has been consistent with Biden’s in that the president supports wide-scale student loan cancellation of up to $10,000, but Congress should pass legislation on mass student loan forgiveness.

With less than 60 days remaining until the end of temporary student loan relief, it’s essential that you understand all your options for student loan repayment. Here are some popular options to save money on your student loans:

• Student loan refinancing (lower interest rate + lower monthly payment)
• Income-driven repayment plans (lower payment, but same interest rate)
• Public service loan forgiveness (student loan forgiveness for public servants)

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[The Wicked Mitch]

Tale as old as time
Dumb as it can be...
Irresponsible shitheads
Manipulative politicians

And the outcome is always the same.

"BUT YOU SAID YOU WOULD MAKE THE DEBT DISAPPEAR!!"

"I lied"

And they never, ever, learn their lesson.

Get what deserve, time for wagie to get back in cagie.

 

[The handsome tard]

Get what deserve, time for wagie to get back in cagie.

 

[DumbDude42]

Cancelling student debt basically means the end of the college industrial complex.

The reason banks give out loans for ridiculously expensive and useless degrees they KNOW many students won’t pay off with an actual job in the field is because they know for sure they can just garnish their Starbucks wages for the next 30 years. Once that guarantee is gone? Banks will start thinking twice about giving out a loan for a $80k gender studies degree that will just get defaulted on in five years.

This is why I am in full support of college debt forgiveness, by the way.

Don't forget garnishing Social Security after that.

I'm in favor of cancelling this kind of student loan debt, whether the recipients are "deserving" or not. You loaned someone $200K for gender studies? That was always predatory, you always knew it, and now you don't get your money back. Too bad.

"cancel student debt" doesnt mean the loans just vanish and the banks take the loss. it means the government just takes over the loans and pays them off with tax money. the banks stil get their cash one way or another, the question is just whether they get it from the debtors or from the taxpayer.

 

[Pentex]

Not like this, Bidenbros....

Imagine expecting the asshole who made student loan debt non-dischargeable in bankruptcy in 2005 to change his stripes.

 

[TowinKarz]

Yeah, that's why I'm against "Canceling" all the debt, it just means it gets foisted off on people who can "afford" to pay it off, and by "afford" we mean "can't say no"

We need to institute new law going forward that you can discharge student loan through bankruptcy, but, unfortunately, all loans given prior to the change will still be valid. That would ALSO end the practice, but, it would also require lawmakers to be punitive towards banks, which will never happen.

People just need to stop taking out the loans in the first place, all the bellyaching over the years about how the majority can't be paid off should be plenty of deterrence at this point.

 

[The Dude]

Don't want debt? Don't take out any loans. It's as simple as. Loans are an obligation, and part of being a grown-ass adult is fulfilling our obligations.

 

[Kosher Dill]

"cancel student debt" doesnt mean the loans just vanish and the banks take the loss.

Says who? It's not like this policy actually exists in law yet. When I advocate for it, that's exactly what I mean in the case of predatory loans, although it would probably involve revising a number of laws rather than just appending "Banks Lose" to the Federal Register.

People just need to stop taking out the loans in the first place, all the bellyaching over the years about how the majority can't be paid off should be plenty of deterrence at this point.

Maybe it "should be" plenty of deterrence, but the people are, in fact, undeterred. The question is: given that fact, what do we do now? Having decades of experience proving that deterrence on the demand side is a failure, we need to move on to deterrence on the supply side.

Don't want debt? Don't take out any loans. It's as simple as.

Do you believe bankruptcy should exist?

 

[DumbDude42]

Says who? It's not like this policy actually exists in law yet. When I advocate for it, that's exactly what I mean in the case of predatory loans, although it would probably involve revising a number of laws rather than just appending "Banks Lose" to the Federal Register.

the government does not have the authority to arbitrarily interfere in peoples legal contracts, ESPECIALLY not retroactively.
they can outlaw the issuing of new student loans for the future, or regulate the contract terms banks can put on these loans, but they can't simply step in and say "hey mister rothschild, remember those billions in student loans you own? they're gone now! poof! haha!"

 

[Kosher Dill]

but they can't simply step in and say "hey mister rothschild, remember those billions in student loans you own? they're gone now! poof! haha!"

The word you're looking for is "bankruptcy".

 

[DumbDude42]

The word you're looking for is "bankruptcy".

said loans are explicitly excluded from being discharged in bankruptcy proceedings. even if you remove that exemption now, it continues to apply to existing loans, just not any new future ones.

the only way government can 'cancel' privately held debt is to buy the debt from the current holders and then forgive it, meaning the taxpayer foots the bill.

 

[frozenrunner]

the government does not have the authority to arbitrarily interfere in peoples legal contracts, ESPECIALLY not retroactively.
they can outlaw the issuing of new student loans for the future, or regulate the contract terms banks can put on these loans, but they can't simply step in and say "hey mister rothschild, remember those billions in student loans you own? they're gone now! poof! haha!"

Not to mention the term "predatory loan" doesn't have a real meaning and would, I think it's obvious (especially these days) that the definition would just change over time to "protect" all borrowers from all risk... and loans require risk.

 

[Mr. Zed da Robot Poon Fed]

Wait the minimum wage in America isn't even $15/hr?

It could have been $15, but our fellow Democrats who years ago supported a $15 min wage went against the bill this year for some reason. Hmm.

 

[Dyn]

for some reason

Maybe they've been spending too much time in literally anywhere civilised and assumed a $15 minimum wage was a massive reduction, like I would have?

 

[TowinKarz]

Maybe it "should be" plenty of deterrence, but the people are, in fact, undeterred.

Then it's not my problem and I resent being made to pay for it through taxes. Same reason I resent being made to pay for other people's welfare - stop subsidizing bad choices because some people never learn.

Do you believe bankruptcy should exist?

Irrelevant, until the law changes, don't expect me to bail you out if bankruptcy is not an option for a loan you took out and you can't pay. It's not my call to make, it's between you and the lender. You agreed to the rules, the rules were not illegal, they were definitely grey area, but you assumed that risk. It's not my fault the loan is now essentially a ball and chain on you so I refuse to pay for your way out and resent the fact that this is seen as some kind of moral failing on MY part. I never signed anything, so I don't see why I should pay or, in this case, be MADE to pay. Yes, it's scummy, it's unfortunate, and I can commiserate about being in a financial pinch. But, again, that's not entitlement to stick me with the bill.

You signed that paper, not me.

Do I think speed limits should exist? Irrelevant, as long as they do, you risk a ticket by not obeying them. Is a 25 mph limit dumb on a wide open rural road where nobody lives? Probably, but until you successfully lobby to get it raised, don't complain to me about being given a hefty ticket for doing 55 on it. The rules say you can't and you did.

The issues here aren't if I think the theory of banking and debt management is sound, it's that I'm being asked, or rather told, that I'll have to pony up and pay for other people who got trapped in debt by their own decision to engage in scummy but legal practices.

People are always going to fuck up, sometimes small, sometimes big. Sometimes in ways that show they don't care about rules, sometimes in ways where they trip over the fine print and it's not "fair".

But, in any and all circumstances, I've never asked anyone to bail me out of my mistakes, don't demand I do it for you while also copping the attitude that it was somehow my fault.

* and "you" in this case doesn't mean YOU-you.... but the kids who think it's a moral imperative that they get to walk away consequence free from their own actions and that personal responsibility is only applicable in cases where nothing is really at stake (what flavor ice cream to get) and not ones with big consequences (do I take out a non-dischargible loan that has a high risk of becoming forever-debt if things don't work out 100% to plan?)

 

[Dyn]

Then it's not my problem and I resent being made to pay for it through taxes. Same reason I resent being made to pay for other people's welfare - stop subsidizing bad choices because some people never learn.

Why are you paying taxes like a sucker then?

 

[JosephStalin]

Dunno...have just kept on making payments on my parent loan. All the payments have gone to principal, nothing to interest, so the principal has gone down quicker.

Indeed, not everyone benefits by going to a four-year school right off the bat. Some students, especially if living in the dorms, can't handle the freedom, and their grades suffer. Community colleges are a great educational deal. Many of these colleges also teach trades.

And all those who took on megabucks of debt for an unemployable degree...tough shit. You borrowed the money, you pay it back.

 

[Secret Asshole]

Also, for old bankruptcy on student loans, you had to wait a decade before you could wipe them out. So it wasn't like people were taking out loans and immediately going bankrupt. You had a ten year waiting period before you could. Apparently this wasn't enough.

@Secret Asshole I also can't reply-quote you, but here are my hot takes.

Do anything to get off your parents tax records for financial aid. Your parents income will determine the maximum amount of Pell grants you can get. You can skirt around this by:

• Getting married or being previously married.
• Having a kid.
• Being a vet or member of the military.
• Being emancipated as a child (I'm not sure how this one works).
• Being 24 or older.

No one wants to wait until they're 24 to start school, so either knock up or marry your high school sweetheart or fake gay marry your best friend, then divorce them 6 months later.

Pell grants will pay almost all of your costs at a community college. They know this, which is why they up the costs in line with increases in Pell grants.

You can get 4 to 6 years of Pell grants (Obama changed the amount when I was in school, not sure if it's reverted back to 4 years).

DO NOT USE STUDENT HOUSING! It's how all non-hedge fund schools recoup their costs, and as such it costs between 10,000 and 20,000 per quarter/semester. It's a huge fucking scam, everything is absurdly overpriced, and you get nothing from it.

If a school forces you to do it, refuse and tell them you're not going to do it. Live at home with your parents, or in a broom closet in an apartment. Live in a van if you have to, just don't use student housing.

Apply for and use work study. Especially if you're doing anything IT or CS related. It's work on campus, and it can get you hired on full time at that campus or be a springboard to another job after you graduate.

IIRC, if you work 20 hours work study then you can apply for food stamps. Combine this with WIC (another food program for mothers and kids) if you knocked up your girlfriend or got married, and other entitlements, and you can reduce your costs to nothing or even get paid to knock up your girlfriend over and over again while you go to college.

I know a guy whose dad taught me all this. His dad bought a house 10 minutes from his son's university. He owned it via a corporation he set up, and then his son got section 8 vouchers and moved in. The government was literally paying the mortgage on a house for the privilege of his son living there, and any money his son "paid" in rent went was discreetly cashed and handed back to his son.

Only go to schools where you can get in-state tuition. The cost is a fraction of an out of state school. If you need to, take a year off school and work to get in-state tuition.

If anyone offers you a job in CS/IT while you are going to college, drop out and take the job. If you major in CS/IT, it's harder to get a job after you graduate than when you're in college.

Do not fight openly fight asshole professors, instead accuse them of woke bullshit. I almost got trespassed from my university's CS/IT classroom building because I criticized the division chair who couldn't write a lick of code after 35 years in the department. After that, I switched tactics and employed woke tactics to get him accused of misogyny and he was forced to retire in disgrace.

A community college is the best place to learn CS, IT, and trades. Like an order of magnitude better, especially in large cities where there are tons of classes. Taking 4 years of community college classes in various trades (or CS/IT and adjacent fields if that's your thing) will make you more money over your life than a bachelors or higher from a university.

Yeah, this is all good advice too.

What does prevent someone to rack up debts and then off to latin america? Can the government garnish that too?

It seems to me this is a punishment for not voting right during Virginia elections and probably they won't vote right during midterms. Lol

The government can basically garnish anything if you have a bank account attached to it. You basically would have to give up your entire life in the US in order to get away from it. Very very few people are willing to do that. I mean, if you have no family and don't care, I guess you could. But picking up and moving to another country is extremely rare.

 

[TowinKarz]

Why are you paying taxes like a sucker then?

A certain amount of taxes are unavoidable.... I'm just vehemently against the fact the amount keeps growing to pay for stuff that only ensures more will be owed.

The government can basically garnish anything if you have a bank account attached to it. You basically would have to give up your entire life in the US in order to get away from it. Very very few people are willing to do that. I mean, if you have no family and don't care, I guess you could. But picking up and moving to another country is extremely rare.

Also, if you can afford to flee to another country and start an actual above-ground legal life there, you can afford to pay off your debt.

It's like asking why a guy who just robbed a corner store is still hanging out in the same neighborhood and doesn't just flee to the French Riviera where the law will never find him.

 

[Beavis]

They'll get their 15 minimum wage soon enough with this level of inflation. It'll be hailed as a massive win for dems delivering on their promises

If you're currently working for less than $15 an hour you're worthless and too stupid to get gibs.

 

[Dyn]

A certain amount of taxes are unavoidable.... I'm just vehemently against the fact the amount keeps growing to pay for stuff that only ensures more will be owed.

No they're not just stop paying them lol.