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Biden cancels $10,000 in federal student loan debt for most borrowers

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Gidgetmom
Frequent Contributor

Re: Biden cancels $10,000 in federal student loan debt for most borrowers

https://www2.ed.gov/policy/gen/leg/foia/secretarys-legal-authority-for-debt-cancellation.pdf

 

From what I have read, this was done by the Secretary of Education claiming authority from the Heroes Act.  

Message 11 of 26
crystal626
Regular Contributor

Re: Biden cancels $10,000 in federal student loan debt for most borrowers


@D10001 wrote:

Problem is nobody will have standing to sue (i.e., demonstrate concrete and particularized injury).  


I would think anyone who pays taxes could sue based on the cost estimate to each taxpayer?

Message 12 of 26
iced
Valued Contributor

Re: Biden cancels $10,000 in federal student loan debt for most borrowers


@crystal626 wrote:

@D10001 wrote:

Problem is nobody will have standing to sue (i.e., demonstrate concrete and particularized injury).  


I would think anyone who pays taxes could sue based on the cost estimate to each taxpayer?


Not really. The top 20% of earners pay almost 80% of all income tax and the top 1% pay almost 30% of all tax (or ~40% of that 80%). 61% (in 2020, usually closer to 50% normally) actually pay no taxes after deductions and credits, so any complaints lobbed by middle-class people on such a basis would be for a laughable amount (as in maybe a few dollars per person).

 

The optics of the top 20% whining for money back isn't good either, so I don't see this approach going anywhere.

Message 13 of 26
CreditCuriosity
Moderator Emeritus

Re: Biden cancels $10,000 in federal student loan debt for most borrowers

Also where they are getting the money or saying they will get the money is laughable.  This will go likely to the supreme court and likely get shot down in it.    I would wager 90% chance this will never happen or be funded, but sure does sound good to some people!  Who doesn't like free money although the thing is it isn't forgiven just passed on to people that pay taxes.  I need to exit out of this thread before I get in trouble;. my opinions obviously are of displeasure.  

Message 14 of 26
mgood
Valued Contributor

Re: Biden cancels $10,000 in federal student loan debt for most borrowers


@crystal626 wrote:

@D10001 wrote:

Problem is nobody will have standing to sue (i.e., demonstrate concrete and particularized injury).  


I would think anyone who pays taxes could sue based on the cost estimate to each taxpayer?


I'm no expert, but I saw something recently that said just being a taxpayer and having to pay for a program does not show "standing" for such suits.



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Message 15 of 26
tcbofade
Super Contributor

Re: Biden cancels $10,000 in federal student loan debt for most borrowers


@JL276 wrote:

Really happy for everyone this helps out! You can't always pick who your tax dollars help. This is no different than paying taxes for roads i'll never drive on, playgrounds I don't play on, social welfare programs i'm not in, etc. This is part of being 'merican lol. So I say hip hip hooray! 


Well put.

 

I'm not especially happy about this, but all three of my children will benefit from it.

 

 

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Message 16 of 26
sjt
Senior Contributor

Re: Biden cancels $10,000 in federal student loan debt for most borrowers


@CreditCuriosity wrote:

Just so I and others tax payers can pay for their debt, not mine.  Wonderful idea right....  This isn't charity.   Nothing is "FREE".  Also really helps out with inflation as well. /end sarcasm


Don't forget a vast majority of PPP loans were forgiven...

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Message 17 of 26
sjt
Senior Contributor

Re: Biden cancels $10,000 in federal student loan debt for most borrowers


@Bill77 wrote:

It makes zero sense that you can discharge credit card debt in bankruptcy but not student loans.

 


You can if you file an "adversary proceeding". Its not an easy process, but its possible.

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Message 18 of 26
crystal626
Regular Contributor

Re: Biden cancels $10,000 in federal student loan debt for most borrowers


@mgood wrote:

@crystal626 wrote:

@D10001 wrote:

Problem is nobody will have standing to sue (i.e., demonstrate concrete and particularized injury).  


I would think anyone who pays taxes could sue based on the cost estimate to each taxpayer?


I'm no expert, but I saw something recently that said just being a taxpayer and having to pay for a program does not show "standing" for such suits.


Yes I heard that after I posted it. They are betting it never makes it to the Supreme Court and it may very well not. They are saying the HEROES Act specifically allows this because COVID is a national emergency. 

 

Oh well, happy for the people it helps I guess but it does nothing to address the fact that education is leaps and bounds more expensive than it should be thanks to the greed of these private schools, it's a temporary bandaid and a bad precedent at best. 

Message 19 of 26
sjt
Senior Contributor

Re: Biden cancels $10,000 in federal student loan debt for most borrowers


@crystal626 wrote:

@D10001 wrote:

Problem is nobody will have standing to sue (i.e., demonstrate concrete and particularized injury).  


I would think anyone who pays taxes could sue based on the cost estimate to each taxpayer?


Does that mean people can also sue for the cost of PPP?

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Message 20 of 26
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