Biden Struggling to Save His Student-loan Debt Relief Plan

New American ^ | 11/19/2022 | David Kelly

[Bon of Babble]

President Biden asked his administration to help save his student-loan debt relief plan from absolute failure.

[cuban leaf]

2) a new process in which individuals can seek to discharge their federal student loans in bankruptcy.

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I suppose they can try that for loans made in the future. Of course, that will change the whole program and alter who can or can’t get a student loan - and how enthusiastically banks embrace them.

[Leaning Right]

> And any college/university not maxing out their prices would also be seen as a sucker! <

I didn’t think of that, but you’re right.

Perhaps the solution is to make colleges co-sign the loans. The student must bear responsibility for choosing a worthless major. But the colleges must also bear some responsibility for even offering such a major.

I say this because college advisors will shamelessly lie to students. You’re thinking about a major in 12th century literature? Good choice! Employers will value your knowledge of the classics.

These advisors are not interested in success for the student. They are only interested in keeping the enrollment numbers up.

[JstABrdPstr]

Biden is the reason student loans current cannot be included in bankruptcy. He has probably forgotten that.

[butlerweave]

Biden struggles to remember who he is

[Night Hides Not]

Just slap a 10% annual tax on endowments’ income, and retire the tax when the loans have been paid off. It would take centuries to achieve that, but it would be a shot across the bow at those universities.

[ExTxMarine]

These advisors are not interested in success for the student.

You are NOT kidding! I have four daughters, three of which were really interested in college. One wanted to be a teacher. One wanted to be a writer. One wanted to be an artist.

Between the three of them, we visited, emailed, and talked with over twenty-five different colleges... every one of them SWORE that [insert chosen major here] would all but guarantee them a life-long, six-figure career! By the time my youngest graduated back in 2011, it was a joke my wife and I would bet how long it would take before one of the counselors or the designated representative/salesman for that chosen major would mention the "life-long, six-figure" phrase!

It was like watching the news...they get their talking points and every single one of them uses the exact same phrase (i.e., "election denier", etc.)! LOL!

[Leaning Right]

You can’t even trust the data that colleges put out. A mid-ranked college near me was involved in a scandal. They were telling prospective students that 97% of their business graduates found work in the profession.

Sounds good! But it turned out that the college was counting in that 97% graduates who could only find work as sales staff in department stores.

I tell young folks I know to consult the Federal Occupational Outlook Handbook. It is at least somewhat honest when describing careers.

https://www.bls.gov/ooh/

[GunHoardingCapitalist]

Who pays for my student loans that I paid off responsibly? Oh thats right, I went to a trade school and paid them off while I was working in a needed field.

Sh!t, I knew I should have gotten a $200k Masters in “transgender underwater basket weaving studies” degree.

My career path would have been complete, to heck with industrial automation, who needs that, when there are non binary conforming baskets needed to be woven!

[2big2fail]

There is a good reason by it’s able to be discharged. It would be a moral hazard., ie one could rack up debt and get your medical or law degree then just not get that first job until you go through bankruptcy. They do a six-month look back. Voila’. Free medical or law degree. Make sense now?

[SamAdams76]

It was nothing more than an election year tease.

This nonsense will never see the light of day. If we go down that road, why should anybody pay their car loans? Their credit cards? Their mortgages?

I feel somewhat bad for the students who were allowed to take out ridiculously large loans for a mostly useless education that barely gets them a barista job at the local Starbucks.

Shame on the colleges for jacking up their tuitions to take advantage of the government initiated taxpayer largesse (at no risk to themselves).

But these college grads need to suck it up and start paying down these loans.

[FlingWingFlyer]

I read an article last night saying that the Feddies have already started sending out tuition reparation checks to the Generation Zero College Snowflake Dropouts. Anybody know what the truth is. This was in the “media”.

[T. Rustin Noone]

Great idea.

In exchange for a manageable debt, offer the poorly educated saps the opportunity to destroy ALL their credit ratings and to be able to answer the common question “Have you ever declared bankruptcy?” in the positive. Forever.

Sheesh!

[Flint]

"absolute failure"

Kind of a trend in the Biden Administration.

[Hiddigeigei]

"Subsidize irresponsible conduct."
Its effect was to greatly subsidize colleges and universities. With family help I went through graduate school, then allowed myself to be drafted into the army. When I got out, I worked for four years for the fed government to save up enough money to go back to school for a PhD. I used the GI bill to pay for the tuition. I also used the GI Bill to only put down $500 to buy a house that I paid off in under three years. I feel the GI Bill was sort of a payoff for being forced to work for $60+ a month plus room and board. I do not feel guilty for taking advantaged of it.

[dhs12345]

Yes, it is a mess. And we would have been stuck with the bill.

Heck, if I am being forced to pay for someones crap education, I should have a say in it. No degrees allowed that can't pay for themselves. And price caps for the school (professors, administrators, etc.). Regulate the heck out of it because most of the degrees in the humanities are a complete waste of time. I am allowed to say this because I am paying the bills.

[usnavy_cop_retired]

Wouldn’t congress have to pass a bill allowing student loan debt to be discharged in bankruptcy. And s it even legal to bankrupt a debt to the US government, which these student loans are, if IRC.

[usnavy_cop_retired]

“The problem with the DOJ announcing plans to allow individuals to discharge their federal student loans is that the current law says these can only be discharged if the student can prove an “undue hardship” from having to pay these loans - period! So, instead of changing the law, the DOJ is going to redefine what “undue hardship” means!”

Each case would have to be individually adjudicated by a bankruptcy judge. They can not do a blanket redefinition of undue hardship since it is defined by statute. It can’t be redefined by regulation since it is the judiciary, (bankruptcy court), that will be required to follow the current statute, not a regulation defining the statute.