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U.S. appeals court blocks Biden SAVE plan for student loans
Posted on 2/18/25 at 1:45 pm
Posted on 2/18/25 at 1:45 pm
A U.S. appeals court on Tuesday blocked the Biden administration’s student loan relief plan known as SAVE, a move that will likely lead to higher monthly payments for millions of borrowers.
The 8th U.S. Circuit Court of Appeals sided with the seven Republican-led states that filed a lawsuit against the U.S. Department of Education’s plan. The states had argued that former President Joe Biden lacked the authority to establish the student loan relief plan.
The GOP states argued that Biden, with SAVE, was essentially trying to find a roundabout way to forgive student debt after the Supreme Court blocked his sweeping debt cancellation plan in June 2023.
SAVE, or the Saving on a Valuable Education plan, came with two key provisions that the lawsuits targeted. It had lower monthly payments than any other federal student loan repayment plan, and it led to quicker debt erasure for those with small balances.
Implementing SAVE could cost as much as $475 billion over a decade, an analysis by the University of Pennsylvania’s Penn Wharton Budget Model found. That made it a target for Republicans, who argued that taxpayers should not be asked to subsidize the loan payments of those who have benefited from a higher education.
The 8th U.S. Circuit Court of Appeals sided with the seven Republican-led states that filed a lawsuit against the U.S. Department of Education’s plan. The states had argued that former President Joe Biden lacked the authority to establish the student loan relief plan.
The GOP states argued that Biden, with SAVE, was essentially trying to find a roundabout way to forgive student debt after the Supreme Court blocked his sweeping debt cancellation plan in June 2023.
SAVE, or the Saving on a Valuable Education plan, came with two key provisions that the lawsuits targeted. It had lower monthly payments than any other federal student loan repayment plan, and it led to quicker debt erasure for those with small balances.
Implementing SAVE could cost as much as $475 billion over a decade, an analysis by the University of Pennsylvania’s Penn Wharton Budget Model found. That made it a target for Republicans, who argued that taxpayers should not be asked to subsidize the loan payments of those who have benefited from a higher education.
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Posted on 2/18/25 at 1:45 pm to Padme
Good, pay yalls bills.
Stop getting pointless degrees.
Stop asking for handouts. If you want a handout move to Europe.
Stop getting pointless degrees.
Stop asking for handouts. If you want a handout move to Europe.
This post was edited on 2/18/25 at 1:46 pm
Posted on 2/18/25 at 1:46 pm to Padme
*a move that will make people pay back what they borrowed.
Posted on 2/18/25 at 1:47 pm to Padme
It still boggles my mind that leftists believe 18-21 year olds can’t comprehend the long-term consequences of a student loan but 10-12 year olds can comprehend the long-term consequences of gender reassignment.
Posted on 2/18/25 at 1:52 pm to Padme
Finished repaying my loans a handful of years ago. It was always infuriating to see Biden/Harris and the Dems in Congress act as if someone who owes on loans now is a hero and someone who owed on loans in 2013 or 2015, etc. is just some random dipshite.
Posted on 2/18/25 at 1:53 pm to Padme
quote:
The 8th U.S. Circuit Court of Appeals sided with the seven Republican-led states that filed a lawsuit against the U.S. Department of Education’s plan. The states had argued that former President Joe Biden lacked the authority to establish the student loan relief plan.
"False
Biden never attempted to do this."
~SFP
This post was edited on 2/18/25 at 2:27 pm
Posted on 2/18/25 at 1:55 pm to Darth_Vader
quote:
It still boggles my mind that leftists believe 18-21 year olds can’t comprehend the long-term consequences of a student loan but 10-12 year olds can comprehend the long-term consequences of gender reassignment.
Posted on 2/18/25 at 2:10 pm to Padme
A lady I worked with showed me her letter from the govt last year. $110,000 forgiven. Amazing
I think she qualified because she worked for a nonprofit for X number of years after graduation.
I think she qualified because she worked for a nonprofit for X number of years after graduation.
Posted on 2/18/25 at 2:11 pm to redneck hippie
quote:
A lady I worked with showed me her letter from the govt last year. $110,000 forgiven. Amazing
I think she qualified because she worked for a nonprofit for X number of years after graduation.
That would be under PSLF.
Posted on 2/18/25 at 2:12 pm to Padme
Plus interest, plus penalties
Posted on 2/18/25 at 2:14 pm to redneck hippie
quote:
I think she qualified because she worked for a nonprofit for X number of years after graduation.
Likely under Public Service Loan Forgiveness which was enacted by Congress under Bush in 2007. It includes some non profits in eligible employment. Basically, Forgiveness for remaining amounts after 120 payments while in full-time eligible position (fed, state, local, or tribal govt or some nonprofits).
Posted on 2/18/25 at 2:23 pm to Wally Sparks
quote:
That would be under PSLF.
Yep. Signed into law by Bush. Don't like it, but that wasn't a Biden or even Obama thing. Obama took advantage of it by using it as a recruiting tool to get hundreds of thousands of new government employees.
The original Bush law said 120 (10 years of payments) + working for a non-profit = forgiveness of balance. In theory, making 10 years of payments would pay off the principal and then some, so it was revenue neutral.
The Obama add on was these income contingent payment plans were drafted where your payments could be no more than 10% of your disposable income. But the calculation was very favorable = 4x poverty rate was exempt.
So if you were a family of 4 in Washington DC, the first $106k of your household income was exempt. Your payment could only be 10% of your income over $106k, divided by 12.
So if you made $130k, your monthly payment could only be $200, no matter what you owed. Many people had a $0 payment, and the Obama administration EO'd that "these payments count toward PSLF"
So in the scenario above, if someone had $150k in student loans, they would have to pay back $24k to have the balance forgiven. DC employment took off. Ultimately this is a case of good intentions hijacked. And once you have a welfare program, you can't take it away. PSLF forgiveness is here to stay. Trump needs to end the Income contingent paybacks like the one the court just blocked. This is good news.
This post was edited on 2/18/25 at 2:33 pm
Posted on 2/18/25 at 2:26 pm to redneck hippie
quote:
A lady I worked with showed me her letter from the govt last year. $110,000 forgiven. Amazing
I think she qualified because she worked for a nonprofit for X number of years after graduation.
It was a cash give out to their political supporters.
The idea of a public service cutout for student loans is crazy.
Posted on 2/18/25 at 2:28 pm to hogcard1964
quote:
Biden never attempted to do this."
No.
I said it didn't violate the Supreme Court ruling
This is a separate litigation with its own discussions of a separate policy
Posted on 2/18/25 at 2:29 pm to Lima Whiskey
quote:
It was a cash give out to their political supporters.
Republican supporters in 2007?
Posted on 2/18/25 at 2:42 pm to Padme
Wonder if this will go to SCOTUS? Since Biden is done.
Posted on 2/18/25 at 2:56 pm to TigerNAtux
Likely won't be appealed I would imagine
Posted on 2/18/25 at 3:00 pm to Padme
I paid off my student loans
My wife paid off her student loans
My daughters are paying off their student loans
My wife paid off her student loans
My daughters are paying off their student loans
Posted on 2/18/25 at 3:06 pm to Darth_Vader
quote:
It still boggles my mind that leftists believe 18-21 year olds can’t comprehend the long-term consequences of a student loan but 10-12 year olds can comprehend the long-term consequences of gender reassignment.
It’s because Lefty’s are hypocrites, dude. That is nothing new. They want to decide how everyone should be then if you don’t believe what they believe you are a terrible person. Sometimes they are right, like fighting for the the rights of women, minorities, gay, and trans people. But they also will exploit the shite out of these same groups so the same rich white people can run the party.
Posted on 2/18/25 at 3:07 pm to Padme
Income based repayment is always an option and is usually 10-15 percent of gross income. After 20 years and remaining balance is forgiven. That is plenty generous. No need for the SAVE plan.
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