Biden Races to Push Controversial Student Loan Forgiveness for Millions Before Leaving Office

Joe Biden

On Friday, the Biden administration published an interim rule to reopen enrollment for two key student loan programs in December, providing borrowers with additional paths to eventual debt forgiveness.

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Bypassing Legal Obstacles on the SAVE Plan

Joe Biden
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Since August, millions of borrowers have been left in limbo due to legal challenges against the SAVE plan—one of the administration’s cornerstone initiatives for reducing student debt.

The SAVE plan, the latest income-driven repayment (IDR) option, offers reduced monthly payments, waived excess interest, and loan forgiveness after 10 to 25 years, depending on loan type and balance. It also qualifies borrowers for Public Service Loan Forgiveness (PSLF), which forgives debt after 10 years for those in qualifying nonprofit or government careers.

Enrollment Opened in Two Income Driven Repayment Plans

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As part of the SAVE rollout, the Department of Education phased out new enrollments in two older IDR plans: Pay-As-You-Earn (PAYE) and Income-Contingent Repayment (ICR). This move aimed to streamline the IDR system but left borrowers with fewer options when the SAVE plan was blocked by ongoing litigation.

To address this gap, the Education Department has introduced an interim rule to reopen enrollment in PAYE and ICR. This measure will restore options for borrowers working toward PSLF or IDR forgiveness and provide a way to continue making progress despite the legal hurdles facing the SAVE plan.

Student Loan Forgiveness and Payment Reductions on Hold for SAVE Plan

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In August, the 8th Circuit Court of Appeals issued an injunction that halted the Education Department’s ability to implement key provisions of the SAVE plan.

This includes pausing any student loan forgiveness, interest subsidies, or reduced payments under the SAVE plan’s formula. As a result, millions of borrowers have been placed into forbearance.

Millions of Borrowers Stuck as Student Loan Forgiveness Plans Are Paused

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During the forbearance period, borrowers aren’t required to make payments, and no interest accrues. However, this forbearance period does not count toward student loan forgiveness under IDR or PSLF.

Additionally, the Education Department had to pause all processing of IDR applications, including those for other IDR plans, to comply with the 8th Circuit’s injunction. As a result, millions of borrowers have found themselves effectively stuck.

The Education Department has now announced that IDR processing will soon resume, giving borrowers a chance to switch to a different plan and get back on track for student loan forgiveness.

PAYE and ICR Plans Still Offer Paths to Student Loan Forgiveness Under PSLF and IDR

Joe Biden
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With the PAYE and ICR plans phased out, borrowers caught in the SAVE plan forbearance are left with limited options for resuming progress toward loan forgiveness under PSLF or IDR. The primary alternative available is the Income-Based Repayment (IBR) plan, which is now the main option for those looking to continue working toward debt relief.

Biden-Harris Administration Counting on Income-Based Repayment Avoiding Legal Challenges

Kamala Harris
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The Income-Based Repayment (IBR) plan, established by Congress in 2007 and expanded in 2010, is not affected by the same legal challenges that have stalled the SAVE plan and other Biden administration debt relief efforts. Like all Income-Driven Repayment (IDR) plans, IBR uses a formula based on the borrower’s income and family size, with any remaining balance eligible for loan forgiveness after 20 or 25 years. Additionally, IBR qualifies for Public Service Loan Forgiveness (PSLF).

Drawbacks of  Income-Based Repayment Plan

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However, IBR can be significantly more expensive than SAVE, offering minimal interest benefits. Additionally, IBR includes a “partial financial hardship” requirement, which can restrict new enrollments for borrowers with higher incomes. This means that borrowers who were previously enrolled in other IDR plans and switched to SAVE may now be unable to continue pursuing loan forgiveness if their income is too high to qualify for IBR.

Biden Reinstates PAYE and ICR Plans to Avoid IDR Pitfalls

Joe Biden
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The reinstatement of PAYE and ICR aims to provide relief. The Education Department notes in its updated guidance, “Borrowers who wish to resume payments” while the SAVE plan remains blocked — “such as those working toward PSLF or low-income borrowers who would owe no monthly payments — may find enrolling in PAYE or ICR a practical option.”

On Friday, the Education Department issued an interim rule allowing borrowers to once again access the PAYE and ICR plans.

The plans are now in a public comment period for 30 days and will be accessible mid-December.

Questions Loom Over PAYE and ICR Student Loan Forgiveness

Bipartisan Observations on Infrastructure Act in New York City. January 31, 2023, New York, USA: US President Joe Biden delivers a speech and discusses topics related to the Bipartisan Infrastructure Act and how it would help with traffic and transportation at the Long Island Railroad West Side Train Yard in New York on Tuesday (31). Credit: Kyle Mazza/TheNews2 (Foto: Kyle Mazza/TheNews2/Deposit Photos)
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The reopening of PAYE and ICR plans offers a glimmer of hope for borrowers working toward student loan forgiveness, but significant uncertainties remain.

The 8th Circuit Court is weighing whether forgiveness at the conclusion of the 20- or 25-year repayment terms under PAYE and ICR is permissible. Although the current legal battle primarily targets the SAVE plan, PAYE and ICR rely on the same legal framework under the Higher Education Act, which is now being scrutinized.

The Biden administration insists that the Act’s legislative history, decades of regulations, loan contracts, and bipartisan Education Department guidance leave no doubt: borrowers are entitled to forgiveness after meeting their repayment obligations. However, Republican challengers argue that the 1993 provision of the Act is ambiguous about whether Congress intended to authorize forgiveness for these programs.

Biden Has Avoided Legal Roadblocks in the Past

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One week before the elections, the Biden administration unveiled a long-awaited proposal aimed at providing student loan forgiveness to approximately eight million Americans facing “financially devastating hardships.”

The proposal included two main provisions: one allows debt cancellation for those deemed by the Department as having at least an 80% likelihood of defaulting within two years, while the other defines hardship through 17 “non-exclusive factors.”

Among these, a “catch-all” factor is intended to give the Department flexibility to forgive additional debt.

The Department projects the rule would cost $112 billion over ten years, provided the SAVE program withstands pending court challenges.

Student Loan Payment Moratorium for Six Months

Joe Biden
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The Biden administration on October 20th, announced that it will continue the moratorium on federal student loan repayments while legal challenges against the debt cancellation plan unfold.

Approximately 8 million borrowers enrolled in the administration’s Saving on a Valuable Education (SAVE) plan will not have to make monthly payments for at least another six months.

President Biden’s $475 billion loan forgiveness initiative was temporarily halted by the 8th U.S. Circuit Court of Appeals in St. Louis in July, following earlier rulings from federal judges in Kansas and Missouri, amid a lawsuit brought by seven Republican-led states.

 

Status of Broader Student Loan Forgiveness

Joe Biden
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Biden campaigned on a promise to cancel widespread student loan debt, but the Supreme Court blocked his plan last year, which aimed to forgive up to $20,000 for 40 million Americans.

In response, Biden directed his Education Department to pursue a new approach with different legal grounds, but the plan was temporarily halted by a judge in Missouri after being challenged by several Republican-led states, shutting down hopes for progress just as another judge’s pause had expired.

 

Judge Schelp Had Granted an Injunction Blocking Any Widespread Cancellation

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U.S. District Judge Matthew Schelp in Missouri issued an injunction at the beginning of October preventing any widespread cancellation.

The request for the injunction came from six Republican-led states just hours after a federal judge in Georgia opted not to extend a separate order blocking the plan.

Led by Missouri’s attorney general, the states urged Schelp to act quickly, warning that the Education Department could “illegally mass cancel up to hundreds of billions of dollars in student loans as soon as Monday.”

Seven States Had Filed Suit Against Third Biden-Harris Student Loan Forgiveness Scheme Days After SCOTUS Sides With Missouri

Joe Biden
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Judge J. Randal Hall had issued a temporary restraining order after Republican state attorneys general filed a lawsuit challenging a rule proposed by the Education Department in April.

The rule would provide full or partial debt relief to certain borrowers, affecting an estimated 30 million people.

Although the rule has not yet been finalized, the state attorneys general claimed they had obtained documents showing the department instructed federal loan servicers to begin canceling loans as soon as this week, which could unlawfully forgive $73 billion in debt overnight.

Led by Missouri, the states argue that the Education Department lacks the authority for such large-scale debt forgiveness. While the administration estimates the policy’s cost at $146.9 billion, the states suggest it could reach into the hundreds of billions.

Judge Hall stated that he “hastily” issued the restraining order to maintain the status quo until a Sept. 18 hearing. This order was again extended for 14 days and was vacated on 3rd October.

This legal action adds to the growing list of challenges against President Joe Biden’s student loan policies and could further delay his most recent attempt to provide debt relief ahead of the November election.

Supreme Court Rejects Biden Administration’s Desperate Appeal to Revive Student Loan Forgiveness Plan

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In August, the Supreme Court rejected a Biden administration plea to revive its latest multibillion-dollar student loan forgiveness plan, as lawsuits continue to move through lower courts.

In an unsigned order with no noted dissents, the court urged the appeals court to issue a more detailed ruling on the plan “with appropriate dispatch.”

 

Two Lower Court Rulings Jeopardize Biden’s Student Loan Forgiveness Plan

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Litigation in two separate cases concerning the SAVE (Saving on a Valuable Education) plan jeopardizes one of the Biden administration’s key student loan policies just months before the November election.

The plan was initially blocked in June by U.S. District Judge John Ross in St. Louis, who issued a preliminary injunction preventing the administration from implementing the forgiveness provision of the SAVE plan. The 8th U.S. Circuit Court of Appeals in St. Louis further blocked the entire debt relief plan on August 9, prompting the administration’s emergency appeal to the Supreme Court.

Meanwhile, a separate challenge by another group of Republican-led states is pending in the 10th U.S. Circuit Court of Appeals in Denver.

This marks the second emergency appeal regarding the SAVE Plan submitted to the Supreme Court this summer. Last month, three other Republican-led states asked the court to maintain a partial block on the plan as their lawsuit proceeds in lower courts.

Missouri Attorney General Issues Statement

Joe Biden
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The lawsuit alleges that the plaintiffs have obtained documents revealing the Department of Education’s intent to begin offering student debt relief as early as this week, in violation of a statute that prohibits the education secretary from implementing a rule less than 60 days after its publication.

“We successfully halted their first two illegal student loan cancellation schemes; I have no doubt we will secure yet another win to block the third one,” Missouri Attorney General Andrew Bailey, who is leading the lawsuit, said in a statement.

“The Biden-Harris Administration is dedicated to saddling working Americans with Ivy League debt, even if they have to break the law to do it. Our latest lawsuit challenges their third and weakest attempt to mass-cancel student loans in the dark of night without letting Congress – or the public – know about it. That’s illegal,” said Attorney General Bailey. “We successfully halted their first two illegal student loan cancellation schemes; I have no doubt we will secure yet another win to block the third one. They may be throwing spaghetti at the wall to see what sticks, but my office is meeting them every step of the way.”

In the suit, the States assert, “Through compulsory process at the end of August, the States have just obtained documents proving that the Secretary [of Education] is implementing this plan without publication and has been planning to do so since May. The Secretary of Education (1) is unlawfully trying to mass cancel hundreds of billions of dollars of loans, and (2) has quietly instructed federal contractors to ‘immediately’ begin cancellation as early as September 3, 2024 (but possibly beginning on September 7).”

“The actual cost of the Third Mass Cancellation Rule is thus the $146.9 billion estimated by the Department plus much of the $475 billion cost of the SAVE Plan,” the States note. “This is the third time the Secretary has unlawfully tried to mass cancel hundreds of billions of dollars in loans. Courts stopped him the first two times, when he tried to do so openly. So now he is trying to do so through cloak and dagger.”

After yesterday’s ruling, Missouri Attorney General Andrew Bailey said in a statement. “This is yet another win for the American people. The Court rightfully recognized Joe Biden and Kamala Harris cannot saddle working Americans with Ivy League debt.”

Lawsuits Against Student Loan Forgiveness Plan

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In late March, 11 Republican-led states filed a lawsuit against the Biden administration’s student loan debt forgiveness plan,

The SAVE plan emerged after the Supreme Court last year rejected a broader debt relief effort by the Biden administration under its pandemic-era plan, which aimed to erase up to $20,000 in student debt for about 43 million borrowers.

Kansas Judge Halting Final Phase on SAVE Program

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In Kansas, U.S. District Judge Daniel D. Crabtree halted the Biden administration from implementing the final phase of the Saving on a Valuable Education program, known as SAVE. Undergraduate borrowers were poised to see their payments reduced by half starting in July—from 10 percent to 5 percent of income above 225 percent of the federal poverty line. Similarly, borrowers with graduate loans would have experienced reduced payments based on a weighted average between 5 percent and 10 percent. This aspect of the program, launched in October, will remain on hold pending litigation.

Judge Crabtree, appointed by President Barack Obama, criticized the Education Department for not clearly demonstrating that Congress authorized the repayment plan initiated by the Biden administration in 2023. He emphasized the program’s significant economic impact, estimated at $230 billion over the next decade by the Congressional Budget Office, as necessitating congressional oversight.

The ruling follows Crabtree’s recent assessment that eight of the 11 states challenging the repayment plan failed to adequately prove how they would be adversely affected. He singled out Alaska, Texas, and South Carolina as states that successfully argued the plan could harm their tax revenue. Conversely, he dismissed arguments from Kansas, Idaho, Alabama, Louisiana, Montana, Utah, Nebraska, and Idaho.

Separate Ruling Against Biden Loan Forgiveness in Missouri

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In a separate ruling in Missouri, U.S. District Judge John A. Ross barred the Education Department from forgiving additional loans under the SAVE plan. This decision marks a victory for Missouri Attorney General Andrew Bailey, who led a coalition of six states in April to challenge the program.

Bailey argued that the Missouri Higher Education Loan Authority, a quasi-state agency servicing federal student loans and funding state scholarships, loses revenue when Direct Loans—those owned by the federal government—are forgiven. This argument echoed claims in the lawsuit that dismantled Biden’s debt relief plan and contributed to advancing this lawsuit, bolstering the case to halt further debt relief under the program.

Ross, also appointed by President Obama, questioned whether Congress envisioned such a comprehensive loan repayment plan as the one created by the Biden administration in 2023, indicating potential jeopardy for the SAVE plan’s future.

Joe Biden has faced criticism from Republicans who accuse him of shifting the burden to taxpayers and undermining the Supreme Court, which blocked the White House’s student loan forgiveness plan last year.

Missouri State Attorney General Applauds Ruling

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Missouri State Attorney General Andrew Bailey, representing one of the seven states that brought the lawsuit said, “By attempting to saddle working Missourians with Ivy League debt, Joe Biden is undermining our constitutional structure, Only Congress has the power of the purse, not the President. Today’s ruling was a huge win for the rule of law, and for every American who Joe Biden was about to force to pay off someone else’s debt.”

Arkansas State Attorney General Voices Support

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Arkansas Attorney General Tim Griffin said: “With Independence Day fast approaching, another court has reminded President Biden that he is not a king. He can’t go around Congress and unilaterally cancel student loans. He should have learned that from Schoolhouse Rock!”

The other states involved in the lawsuit include Florida, Georgia, North Dakota, Ohio, and Oklahoma.

 

Monthly Student Loan Forgiveness Announcements

Joe Biden
President of the United States Joe Biden’s speech on the economy. September 14, 2023, Largo, Maryland, USA: The US President Joe Biden delivered remarks on Thursday (14) afternoon on Bidenomics at Prince George’s Community College in Largo, Maryland. Credit: Jack Marain/TheNews2 (Foto: Jack Marain/Thenews2/Deposit Photos)

Prior to the November election, the administration was keen to highlight its progress in debt cancellation programs, making similar announcements almost monthly.

In April, the administration announced another round of cancellations totaling $7.4 billion for 277,000 borrowers.

On May 1st, the Biden administration has announced the cancellation of $6.1 billion in student loans for 317,000 borrowers who attended The Art Institutes.

On 22nd May, the cancellation of an additional $7.7 billion in student loans was announced.

 

$167 Billion in Loans Forgiven So Far

Joe Biden
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Including the latest forgiveness action, the administration has now cancelled over $167 billion in debt for almost 4.7 million borrowers which amounts to 10% of all outstanding student loan debt and an average of $34,783 per student.

Biden Plans To Offer More Student Loan Forgiveness

US President Joe Biden delivers remarks at National Action Network Martin Luther King, Jr. Day Breakfast. January 16, 2023, Washington, DC, USA: President of the United States Joe Biden addressed attendees on Martin Luther King, Jr. Day and commented on Republicans saying that they are fiscally demented. President Biden also commented on police and social justice. Credit: Kyle Mazza/TheNews2 (Foto: Kyle Mazza/TheNews2/Deposit Photos)
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The Biden Administration introduced broader student debt relief proposals set to take effect this fall impacting 30 million borrowers.

Biden’s recent proposal for student loan forgiveness is advancing as a proposed regulation, presenting him with a renewed opportunity to forgive more student loans.

Biden’s New Student Loan Forgiveness Plan Estimated To Cost $84 Billion, Adding To The Already Massive $475 Billion

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A recent analysis by the Penn Wharton Budget Model (PWBM) suggests that Biden’s new student debt relief plan could incur approximately $84 billion in costs if put into action. This amount is in addition to the $475 billion previously estimated for Biden’s prior SAVE plan.

The report states “We estimate that the New Plans will cost $84 billion in addition to the $475 billion that we estimated for President Biden’s SAVE plan, for a total cost of about $559 billion across both plans.”

The New Plans contain 5 main provisions

#1 Waived Accrued and Capitalized Interest

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Up to $20,000 in interest  will be waived, irrespective of borrower’s income levels. Single individuals earning under $120,000 or couples earning under $240,000 annually are eligible for a complete waiver of all balances exceeding the initial balance under any Income-Driven-repayment (IDR) plan. No application is necessary as automatic relief will be applied.

Estimated cost of $57.75 billion

#2 Forgiving Student Debt For Borrowers In Repayment For 20 Years

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Those who began repaying loans on or before July 1, 2005 (or July 1, 2000 for those with graduate debt) will have all undergraduate debt eliminated. No enrollment in IDR plans is necessary for this relief, although other application requirements for borrowers are yet to be clarified.

Estimated cost of $19.07 billion

#3 Automatic Debt Relief

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Automatically relieving debt for eligible borrowers not enrolled in specific forgiveness programs. Those who meet forgiveness criteria but aren’t enrolled will benefit from favorable repayment rules, including those of the SAVE plan or closed school discharge. No application is required as automatic relief will be applied.

Costs already included as part of the prior SAVE loan forgiveness.

#4 Assisting Borrowers From Low Value Programs or Institutions

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Debt relief will be extended to those who accrued debt from programs or institutions that did not provide “sufficient value” in terms of post-graduation earnings.

Not enough details have been provided by the administration to calculate the cost.

#5 Loan Repayment Hardships

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Relief will be tailored to each borrower’s situation, though whether it will cover partial or full debt is unspecified. The department’s hardship proposal aims to provide loan cancellation to borrowers facing a high risk of loan default. Additional details are pending on this proposal.

Breakdown of the Budget Cost Estimates

US President Joe Biden attends an event in the state of Pennsylvania. August 30, 2022, Wilkes Barre, Pennsylvania, USA: US President Joe Biden speaks on security and firearms during an event in Wilkes Barre, Pennsylvania, on Tuesday (30), the first of three trips to this key election state. November legislatures. The Democrat wants to send a message of firmness against crime and promises new reforms to the arms laws. Credit: Kyle Mazza/Thenews2 (Foto: Kyle Mazza/TheNews2/Deposit Photos)
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The Penn Wharton Budget Model breaks down the budgetary impact of each of the 5 provisions including the number of individuals benefitting along with their average household income.

One of the biggest criticisms of the New Plan is the benefit provided for about 750,000 households making over $312,000 in average household income.

 

Ranking Member Cassidy Slams Biden’s Backup Student Loan Scheme

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Sen. Bill Cassidy, R-La., the ranking member of the Senate Health, Education, Labor and Pensions Committee said, “The Supreme Court already ruled the Biden administration doesn’t have the authority to unilaterally take student debt from those who willingly took it on and transfer it to taxpayers who chose not to go to college or already worked to pay their loans off. Now, the Department of Education is completely rewriting the Higher Education Act piece by piece to resurrect this unconstitutional student loan scheme. Where is the relief for the guy who didn’t go to college but is working to pay off the loan on the truck he takes to work? What about the woman who paid off her student loans, but is now struggling to afford her mortgage? Instead, the Biden administration is sticking these Americans with the bill of someone else’s student debt.”

Public Opinion Does Not Favor Biden On Student Loan Debt

US President Joe Biden attends an event in the state of Pennsylvania. August 30, 2022, Wilkes Barre, Pennsylvania, USA: US President Joe Biden speaks on security and firearms during an event in Wilkes Barre, Pennsylvania, on Tuesday (30), the first of three trips to this key election state. November legislatures. The Democrat wants to send a message of firmness against crime and promises new reforms to the arms laws. Credit: Kyle Mazza/Thenews2 (Foto: Kyle Mazza/TheNews2/Deposit Photos)
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A new poll from the University of Chicago Harris School of Public Policy and The Associated Press-NORC Center for Public Affairs Research reveals that three in ten U.S. adults approve of how President Biden has handled student loan debt, while four in ten disapprove, with the remaining respondents either neutral or uncertain.

The outlook is similarly bleak among those with unpaid student loans, whether for themselves or a family member.

Court Challenges Ahead

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The U.S. Supreme Court struck down a student loan cancellation proposal last year. The court determined that the post-9/11 HEROES Act, which permits the federal government to waive student loans during emergencies, was not designed to provide universal loan forgiveness.

Utilizing a different legal basis, Biden Administration’s new proposal aims to forgive loans for over 25 million Americans. Opponents view it as unjust burden for taxpayers and have vowed to contest it legally.

Biden-Harris Administration Using Various Strategies Weeks After Elections

Kamala Harris
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The Biden administration has consistently canceled student loans using a variety of existing programs while also pursuing a broader one-time cancellation plan. This approach builds on a proposal that was struck down by the Supreme Court last year but utilizes different legal strategies

$4.5 Billion in Student Debt for Government and Nonprofit Workers Cancelled

Joe Biden
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A month prior to the elections, the Biden-Harris administration cancelled student loan debt under the Public Service Loan Forgiveness (PSLF) program.

The Public Service Loan Forgiveness (PSLF) program was setup for individuals working full-time for a government or nonprofit organization . If qualified, they could have the remaining balance of your Direct student loans forgiven after making 120 qualifying monthly payments.

The Biden administration’s overhaul of the Public Service Loan Forgiveness (PSLF) program has now provided relief to over 1 million Americans, a dramatic increase from the mere 7,000 borrowers approved before the changes.

In 2021, the Biden administration stepped in, declaring the program “broken” and temporarily waiving many of the restrictive rules. Since then, the Department of Education has made these changes permanent, resulting in waves of loan forgiveness for public workers. With the latest 60,000 borrowers now approved, the program has wiped out $74 billion in debt.

Questions Remain on the Timing of the Announcement

Republican Candidate Donald Trump Democratic Candidate Joe Biden
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The Department of Education (DOE) estimates that the proposed new initiative could impact between 2.67 million and 8 million borrowers. To date, under the Biden administration, the DOE has delivered $175 billion in student loan forgiveness to approximately 5 million individuals.

President-elect Donald Trump has consistently opposed Biden’s efforts to forgive student loans. Yet, the Biden-Harris administration has made the announcement following their election loss.

During a September debate with Vice President Kamala Harris, Trump criticized Biden and Harris for falling short on their promise to cancel student debt. He labeled the administration’s initial plan for broad student loan forgiveness a “complete disaster” and argued it would have been “unfair” to the millions of Americans who fulfilled their repayment obligations.

 

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Social Security Projected to be Insolvent by 2035, Medicare by 2036

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The Trustees of Social Security and Medicare unveiled their yearly financial forecasts for both programs, looking ahead over the next 75 years. The newly released projections for Social Security paint a grim picture of rapid progression towards insolvency in 10 years, underscoring the urgent need for trust fund remedies to avert widespread benefit reductions or sudden adjustments in taxes or benefits.

Social Security Projected to be Insolvent by 2035, Medicare by 2036

 

National Debt Exceeds Previous Projections, Signaling Troubling Times Ahead for the U.S. Economy as per CBO March report

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The Congressional Budget Office (CBO) performs nonpartisan analysis for the U.S. Congress. The latest Budget and Economic Outlook released March 2024, offered dire projections for the country’s fiscal and economic landscape over the upcoming decades. Unfortunately the national debt is higher than initially anticipated and is projected to hit $141 trillion by 2054.

National Debt Exceeds Previous Projections, Signaling Troubling Times Ahead for the U.S. Economy as per CBO March report

The 10 States Taxing Social Security in 2024 and the 2 That Just Stopped

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While many bask in the belief that their golden years will be tax-friendly, residents in nine specific states are facing a reality check as their Social Security benefits come under the taxman’s purview. Conversely, a wave of relief is set to wash over two states, marking an end to their era of taxing these benefits. This shift paints a complex portrait of retirement planning across the U.S., underscoring the importance of staying informed of the ever changing tax laws. Are you residing in one of these states? It’s time to uncover the impact of these tax changes on your retirement strategy and possibly reconsider your locale choice for those serene post-work years. Here are the states taxing social security benefits.

The States Taxing Social Security in 2024 and the 2 That Just Stopped

Top 10 Cities Where Home Sellers Are Losing Big, With San Francisco Seeing 20% Take a Loss, Quadruple the National Average

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In San Francisco, a significant number of home sellers are experiencing financial losses at levels not seen in over a decade. This uptick in losses can be attributed to home prices normalizing after a period of steep increases. Currently, nearly 20% of sellers in the city are selling their homes for less than their purchase price, with average losses around $155,500. In contrast, the national scene is less bleak, with only 4% of home sellers across the United States facing losses, as home prices generally continue to hover near peak levels. The typical loss for those unlucky few is about $40,000. Redfin conducted an analysis of the top 50 metros to narrow down the cities where the seller sold the home for less than they bought it for. Here are the top 10 cities where home sellers are facing losses

Top 10 Cities Where Home Sellers Are Losing Big, With San Francisco Seeing 20% Take a Loss, Quadruple the National Average

Retire Abroad and Still Collect Social Security? Avoid These 9 Countries Where It’s Not Possible

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Dreaming of retiring to a sun-drenched beach or a quaint village? Many Americans envision spending their golden years abroad, savoring the delights of new cultures and landscapes. However, an essential part of this dream hinges on the financial stability provided by Social Security benefits. Before packing your bags and bidding farewell, it’s crucial to know that not all countries play by the same rules when it comes to collecting these benefits overseas. Here are the nine countries where your dream of retiring abroad could hit a snag, as Social Security benefits don’t cross every border. Avoid living in these countries so your retirement plans don’t get lost in translation.

Retire Abroad and Still Collect Social Security? Avoid These 9 Countries Where It’s Not Possible

Americans Are Teetering on the Edge of Financial Strain As 1 in 5 Users Is Maxed-Out

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In its Quarterly Report on Household Debt and Credit for the first quarter of 2024, the New York Fed’s Center for Microeconomic Data highlighted a concerning trend: more borrowers are falling behind on credit card payments. 1 out of every 5 borrowers is maxed-out.

Americans Are Teetering on the Edge of Financial Strain As 1 in 5 Users Is Maxed-Out

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