#shorts On 6/30/2023, during press conference RAMAMURTI & Sec. CARDONA said, “by the way, one concern that people have had about the income-based repayment program in the past is that if you were making these smaller payments, your balance would keep growing over time. One of the reforms we’re putting in place is making sure that that balance doesn’t grow over time, even as you are making potentially a zero-dollar payment each month. It is a big deal for both current borrowers and for all the future borrowers who are out there. Now, I want to be clear: That’s not a substitute for debt relief, but it is a huge benefit for borrowers that is going to be available coming this summer. And we encourage people to sign up for it.
Sec CARDONA: I want to make it very clear to the folks who are paying attention to this that maybe don’t know the details of it: The income-driven repayment plan that we talked about today, SAVE — we’re calling it “SAVE” — will cut in half loan payments for undergraduate students. So think about the students that said, “I can’t go to college because I can’t afford the 600-, 700-dollar…” — those are going to be cut in half.
On 6/30/2023, the Supreme Court put the final nail in the coffin and invalidated Biden’s student loan bailout program. Joe Biden unilaterally announced a massive forgiveness of student loans last August to buy the Gen Z-Millennial vote in the 2022 midterms. Biden canceled over $400 billion in student loans which turns out to be up to $10,000 in student debt for borrowers who earn $125,000 a year or less and up to $20,000 for recipients of Pell Grants. Six Republican state attorneys general sued Joe Biden and argued the student loan bailout violates the separation of powers. Separately, two borrowers who did not qualify for Joe Biden’s student loan forgiveness plan (Department of Education v Brown) sued to stop the program. The Supreme Court ruled 6-3 in Biden v Nebraska that Joe Biden’s student loan forgiveness was unlawful. The 8th US Circuit Court of Appeals in November extended a block on Joe Biden’s student loan bailout plan. The DOJ then asked the Supreme Court to lift the 8th Circuit Court’s block, which they refused to do. The Supreme Court ruled 6-3 that Joe Biden overstepped his authority.
other clips of this published longer video is here: https://youtu.be/5guoqhrgHkk
Big deal: zero $ payment but balance doesn’t grow for current & future borrowers; cut in half loan payments