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Biden stung by student loan legal loss days before taking effect
(www.newsweek.com)
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this post was submitted on 25 Jun 2024
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It was a stupid plan to begin with:
"Under the SAVE plan, borrowers whose original principal balances were $12,000 or less will receive forgiveness after 120 payments (the equivalent of 10 years in repayment)," the White House explained in a statement in August."
So... if you borrowed $12,000 or less... First, who does that on a student loan?
AND, if you made monthly payments for 10 years...
AND if you still owed money...
It could be forgiven.
This was just a way for them to say they were doing something about student loans, but really do nothing about student loans.
2.5 million people qualified for this plan, one of 5 that were put in place.
The plan was largely targeting dropouts, because they tend to be most trapped by loans. They don't get any income benefit from a college degree, and tend to have lower paying jobs. If you're doing income based repayment at minimum wage, it's possible for your loan principle to grow continuously.
I'm not saying it's perfect, but it definitely would have helped people.
They claim 2.5 million but I doubt the real numbers would have been that high or, after 10 years of payments, that the outstanding debt would have been anything significant.
The federal government tracks all student loans, they know very explicitly how many people qualify.
If you're making income based payments, and you have low income, the debt grows over time because the payments aren't even enough to cover interest on the debt.