Biden Regime Trots Out Their Plan To Cut Payments For Those With Student Loans

It’s a serious far cry from Brandon’s  promise to wipe out student loan debt

(Daily Caller) The Biden administration is planning to use a generous income-driven repayment plan as its main method of easing student loan debt following the Supreme Court’s Friday ruling that blocked the administration’s plan to grant student loan forgiveness to nearly 40 million Americans.

The Supreme Court ruled 6-3 that the Biden administration cannot use executive power in order to cancel up to $10,000 in student loan debt for non-Pell Grant recipients and up to $20,000 for Pell Grant recipients. To circumvent the Supreme Court’s ruling, the Department of Education (DOE) plans to use the Higher Education Act as well as expand income-driven repayment plans, which would cut payments for those making $32,800 or less annually to $0, according to a Saturday press release.

You have a college degree and you’re making $32,800 or less? How much debt did you put yourself in, and why did you get such a worthless degree? You could have just gone to community college or a trade school and made more.

Under the DOE’s repayment plans, borrowers who miss payments within the first year, beginning Oct. 1, will not be penalized, reported to credit or collection agencies or put in default, the WSJ reported. The DOE estimates that their expansion of income-driven repayment plans will save all borrowers at least $1,000 per year.

The department’s revamped income-driven repayment plans are estimated to cost taxpayers more than one-time outright forgiveness, according to a Penn Wharton Budget Model report.

How many will actually qualify for this, if it’s about people making that little money/$15 an hour? How much damage can the plan do?

(NY Post) While everyone’s focus has been on the administration’s outrageous cancellation stunt, the DOE has been working tirelessly to accomplish an even more disastrous policy: a new Income-Driven Repayment rule.

The federal student-loan policy is obscenely complex, but under the Higher Education Act, Congress created a variety of programs to help borrowers who struggle to pay their loans.

Those include Income Contingent Repayment and Income-Based Repayment programs.

With varying terms, these programs limit borrowers’ monthly payments to a percentage of their income. IBR also includes a forgiveness provision after a borrower has made payments for 20 years.

When Congress wrote the law, they essentially gave away all the power, allowing the DOE to make all the rules

Under the new plan, in a variety of formulations, the secretary proposes to dramatically reduce the monthly payments of most borrowers, with millions looking at payments of $0, while also reducing the time to forgiveness to as short as 10 years.

In other words, while styled as a rule that simply tinkers with the details of existing income-based repayment programs, it effectively does the same work as the cancellation effort: It writes off the debts of millions of college-educated borrowers.

The Penn Wharton Budget Model estimated that the actual program costs between $333 billion and $361 billion over 10 years.

Estimates that account for tuition inflation and future borrowing costs put government expenditures as high as $1 trillion.

Except a lawsuit on this, since Article I forbids giving away Congressional power, as well as “requires federal expenditures to be “in consequence of appropriations made by law.”” Besides the lawsuit question, another is how long it will take to truly get this in place, as it will take months to get it in place and it is supposed to be very difficult to navigate.

The post Biden Regime Trots Out Their Plan To Cut Payments For Those With Student Loans appeared first on Pirate’s Cove.