#shorts On 6/30/2023, a reporter asked, “Are you on totally solid legal footing with the income-based repayment changes or could there be lawsuits challenging that as well?
MR. RAMAMURTI: That authority is crystal clear. There is a specific statute allowing the Secretary to design these income-based repayment programs. And the specific details of this income-based repayment program are — are clearly within what’s permitted under the statute there. And so, we — I would be surprised, frankly, if there was a legal challenge to that proposal.
Reporter: And you say it’s not a substitute, obviously, for debt forgiveness. Are there — and — and I think this is a known answer, so I’m sorry for even asking it — but, like, how big is the universe of people who don’t qualify for the income-based repayment who just aren’t going to be covered by this exciting thing you just offered?
MR. RAMAMURTI: Sure. Every single borrower is eligible for this program. Now, the key is that if you’re an extremely high-income borrower, your income may be so high that the specific benefit, where you cap your payment at a percentage of your income, doesn’t actually benefit you because that percentage is still higher than what your monthly payment would be. But it — it stretches pretty far up the income spectrum
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/44mh8SgAsd4
Q: new exciting thing solid legal footing? lawsuits challenging as well? A: authority is crystal clear