Biden finds loophole and forgives $9 billion in student loan debt

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After the U.S. Supreme Court ruled in June that the Biden Administration’s $400 billion college student loan forgiveness program was unconstitutional, President Joe Biden has found a workaround.

On Wednesday, Biden canceled $9 billion in student debt for 125,000 people who qualify under certain programs, particularly government workers, teachers, firefighters, and those Americans with who receive disability payments.

Student loans from the government had been put on “pause” for three years, starting during the Covid pandemic, when college and the job market was greatly disrupted. The Biden Administration attempted to cancel all the debt. But payment requirements started up again this month, after the Supreme Court’s decision.

 According to the White House, some 1,330 borrowers in Alaska will be relieved of $89.5 million in student loans.

The Biden-Harris Administration approved:

  • $5.2 billion in additional debt relief for 53,000 borrowers under Public Service Loan Forgiveness programs.
  • Nearly $2.8 billion in new debt relief for nearly 51,000 borrowers through fixes to income-driven repayment. These are borrowers who made 20 years or more of payments but never got the relief they were entitled to.
  • $1.2 billion for nearly 22,000 borrowers who have a total or permanent disability who have been identified and approved for discharge through a data match with the Social Security Administration.

Visit this link to see the state-by-state breakdown.

“This kind of relief is life changing for individuals and their families,” Biden said.

The president’s earlier plan, which made the deft forgiveness under the HEROES Act, forgave more than $400 billion in student debt for about 43 million borrowers.

155 COMMENTS

  1. There is no work- around. SCOTUS made it clear that Congress makes appropriations- not POTUS. So what the criminal- Biden just did will be overturned in the courts, again- and Biden probably knows this, even in his dementia. This is entirely a vote buying attempt.

    • If for no other reason than that the public’s tax dollars are not collected w/ the intention of supplying same to a privileged class.

      The US goes from calamity to calamity. Covid-19 > Broken Supply Chain > TP Shortage > Drug Addled Bums > ANTIFA dirtbag nonsense > Storming the Grounds of the Whitehouse > ad nauseum. That process leaves us constantly in need of another calamity and this one is too weak to fill the bill.

      Thank you, Sir. May I have another.

    • These are not illicit workarounds but are standard programs within the federal student loan program, and therefore are unlikely to be overturned by the court. The PSLF plan, for example, has been in effect for 16 years. People with permanent disabilities have long been able to have their loans discharged. The only difference this time was that the Social Security agency worked with the student loan system to find eligible recipients. The income driven repayment plan was in disarray for a number of years, so many borrowers who were eligible for forgiveness were not properly processed. This administration just looked harder for people who were already eligible for forgiveness.

        • If you collect Social Security payments and are qualified for total and permanent disability status, your federal student loans should be discharged. Here’s the info: ‘https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge

      • Most of which went to cover the losses people incurred by the now proven useless Wuhan Flu closures.

      • So?
        That is still $3T less than 0bama added.
        .
        Besides, just because one President added a bunch of money to the debt does not mean every other President can ignore it and spend like a leftists. Tell me, if your spouse (assuming anyone could tolerate you long enough to date, much less marry) were to run every credit card up to the limit, would your response be to spend more?

    • It’s convenient how he suddenly discovered a work around when his poll numbers hit rock bottom.

      Assist to Gaetz for creating the perfect diversion.

  2. Rather ironic, since Government workers, Teachers, and Firefighters are high on the income scale. I’d rather no loan forgiveness, however if there is going to be “forgiveness”, how about just workers making less than $30,000 or $40,000?????

    • The Public Service Loan Forgiveness plan is based solely on service to the public, such as teachers and firefighters. The determination is made based on the number of years borrowers served in public service. How much they earned in salary is not part of the calculation, although they had to have been making at least income-dependent consecutive payments on time for 120 months to qualify for forgiveness.

      • Okay so here is a dumb question, if they all have an income and are gainfully employed by a government entity of some kind, WHY in all the world do they need or deserve loan forgiveness? Shouldn’t they have the funds to pay it off as agreed like every other person in the private sector?

        • It’s another incentive meant to attract workers. You could make the same amount of money in the private sector sure, but the promise of loan forgiveness factors into the reason why some take the public jobs.

        • Think of it like a contract or agreement. You need more doctors or lawyers or whatever. I agree to get educated to do that and work for you for ten years. You pay my bill in exchange for my work. Even knuckle draggers should be able to understand that.

        • Many, if not most, college-educated professionals who work in public service jobs could earn much higher salaries in private industry. This is especially true for scientists, researchers, engineers, and other STEM workers. And as ketchikantstandyall noted, the PSLF program helps to attract and retain workers in the public sector who could probably make more money–and earn the social security benefits denied to public workers–if they chose to work in the private sector.

          • If they choose to job that does not pay enough for them to cover their bills, how is that my problem?
            Not getting paid enough? Get a job that does pay enough. If not enough qualified people apply for government jobs, the pay will go up. it is how the market works.
            (And, cue the flood of anecdotal examples saying otherwise. Pointing out the exception does not disprove the rule.)

    • And what does that have to do with Government workers’, Teachers’, and Firefighters’ loans being “forgiven” ???????

      Alaska oil workers’ college loans aren’t being “forgiven”.

        • And the high Federal Taxes the oil workers pay will go to the government that owes over $33 Trillion in debts due to ineptness like “forgiving” loans.

  3. The republic doesn’t have three branches of government anymore. We are living under a dictator and the regime has neutered congress and the supreme court. This is terrible for anyone who cherishes their freedoms. The regime can now do as it pleases while most American are oblivious to the fact. Ben Franklin was correct when he responded with these words. “Republic, if you can keep it”.

  4. Can you be more specific on how this alleged “work around” actually works?

    And who, if anybody will have the stones to challenge it in court?

    • Oh come now Sarah. You did it to the Birthright Owner of Russia…and made out like a bandit. Must be why you liked being on the Masked show and have the nickname here of Masked Avenger. Too bad BoBo is going to take you out like the white trash you are…lol.

      • It was worth over $108.401,500.00 in 1989.
        Where is that money at now? Laundered. ICC knows about it and has been seizing assets since. Ol Sarah will lose everything and end up in prison. Just like Trump will. Don’t steal. No one likes a thief.

      • Again, assuming it doesn’t get dumped again,

        what in hell are you babbling about?

        It’s cute you want me to be someone named Sarah. Infantile, but cute.

  5. It’s not a ‘loophole’, it is just them making good on the promise to public-service workers that if they make on time payments for ten years then the remaining balance will be forgiven. Alot of folks have been working as police and teachers and other public jobs for over ten years and never had the forgiveness that was promised. That’s all this is.

      • If you took out a loan under the condition that your debt would be forgiven after ten years of a specific service, then Mr. KB you deserve your goody.

        • Gov promises a lot of things it doesn’t deliver on – freedom and police protection immediately come to mind. A person has to be naive to expect it to fulfill its worthless promises. The govt is in the hole financially and doesn’t have the money to reimburse millennials for foolish purchases.

    • Actually tim, it appears this is a contractual matter of “serve and pay” for x amount of years and the government reneged on their part of paying the remainder of loans after the contractually agreed upon time and condition were met. You should be mad at the current occupant for not all along fulling this obligation. This isn’t loan forgiveness this is contractual fulfillment of obligations being rebranded and abused to make the current office holder LOOK like he is keeping a promise on the backs of people he appears to have ignore all along.

  6. Wow thats a lot of votes using taxpayer dollars.
    Fire up the printing press we have a war to fund.
    Just rack up the credit card Hunter. We will pay later.

  7. Let’s go, Brandon.

    It’s so easy to spend other people’s money. Why do I bother working? The federal governement takes a ton of my money to give to other people. The borough punishes me if I use my $ to improve my property. (“Nice sidewalk. That will be $500 more in your property tax payments.”) Our Alaska delegation (of Murkowski, Sullivan, and Young) pushed through a $Trillion+ bill that contributed greatly to devaluing my savings and the dollar. Thanks for nothing.

  8. By my math, $5.2 billion divided by 53,000 is just over $98,000 “forgiven” per. What were these people thinking when they racked up $100k in student loans for mostly useless degrees???? Rhetorical question. To them, it’s Monopoly money subsidizing a college lifestyle, but the rest of us are stuck with the bill.

      • Curiously, those degrees generally have job prospects that pay well enough that servicing and closing the loan are not a problem.
        On the other hand, the folks clamoring for loan “forgiveness” are the ones with worthless degrees in hyphenated-American studies.

          • If you get a degree in law, medicine, or education, and cannot afford to pay back your loan, you are not actually working in the field you studied, therefore, you degree is worthless.
            And, I do not want society to reward people for doing things that do not benefit society.

    • And that’s the balance left after years & years of payments. 72% of these useless degrees we’re bestowed on students whose families have high income brackets.

  9. This $9 Billion financed by the taxpayer will go right back into the economy and provide multiple returns for the GDP. Similar to the reasoning used by the Republicans when they passed the 2017 Tax Cuts for the wealthy

    • Please explain just how the money “will go right back into the economy and provide multiple returns for the GDP”, if you can.

    • Oh “Frank”…

      You argue this but complain about the PFD.

      My grandchildren have more consistency and fiscal sense than you do. And one is still in diapers.

    • Oh Frank! The country needs certain professions to operate. If that education is long and costly, few will go there creating a shortage. Why build a submarine when they are expensive? Because we need them.

    • No, it won’t.
      On the other hand, if the Briben admin spent $7B to help US companies improve their factories, that has been demonstrated to have more than a six to one return.
      Welfare, at best has less than a 2:1 return rate. (And, the 2:1 is very optimistic.)

    • Nonsense. I pray that the “forgiveness” is considered by the IRS as a cash benefit, and declared taxable income.

  10. Truly, a banana republic.

    I’m old, I’ll outrun this. Those younger than me need to study what happened to the citizens of the Soviet Union when it collapsed. That’s your future.

  11. No one told me that, when working to help support my family, I would be responsible for other people’s bills too. The US taxpayers, the 50% or so of us that do pay taxes, are once again left holding the bag and there is not even money in that bag to pay these bills this incompetent person and his minions are pushing on us. I just read this morning that for roughly 575 US counties, home prices in 99% of those counties are beyond the reach of average income earner. With mortgage rates topping 7% and the median cost of homes now, it’s no wonder. Inflation is fed by the government spending money like a drunken sailor and when money is that is loaned and then forgiven and not paid back, that’s spending money we don’t have, continuing to fuel inflation. The voters better make a change next year or our country will continue to sink deeper and deeper into a hole we will never get out of.

      • Greg, it seems that you are misunderstanding what Ms. Rupe is saying. She is contrasting what the Federal government doing by paying back some people’s student debt with fiscal rationality and responsibility from the perspective of one who pays out, not receives back. The utilities and city roads you appear to reference are from a different tax source, one where you can typically see where your money is going. (Unless you live in Anchorage) -Cheers

      • Ahhh… the favorite of the leftists rears it little head.
        The roads.
        .
        I paid for the roads. I continue to pay for the roads. Excise taxes on every gallon of fuel, and on the gross weight of trucks (of which I pay for through purchase of the products they are carrying) paid for the roads, and continues to pay for the roads. The Federal Highways Administration grants billions of taxpayer dollars, collected from excise taxes every year for the roads. I pay for my use.
        And so does everyone in the USA.
        .
        On the other hand, the people getting their debt wiped out did nothing for me to justify that handout taken from my taxes.

          • Look, Greg… we all know you are a leftist, but do you have to push this socialist claptrap so vigorously?
            .
            The Federal Government should not be forgiving any loans. None. Zip, zero, nada. No loans. End of story.
            If an employer wants to offer student loan pay off as a benefit of employment, that is between the employer and their employees. If the Muni wants to use taxpayer dollars to pay off loans their police and firefighters incurred, that is a Muni issue, not Federal.
            .
            Stop worshiping at the altar of the all-powerful State. No one is on your side here.

  12. Where are my Loan reparations!?
    LOL.. American Politics are a JOKE!!
    The world is laughing at us..
    -Tar and Feathers anyone?

          • Curious how you equate a smaller government as doing bad for the country. Or, are you making a massive assumption that I have not done anything good for my country?
            Children…. errr… I mean leftists will make assumptions that are derogatory against anyone who disagrees with them. Baseless assumptions. I bet you are proud of that as well.

  13. What’s a few more billion dollars when we are nearly 33 TRILLION of dollars in debt?

    In August 2023, the public debt of the United States was around 32.91 trillion U.S. dollars, around two trillion more than a year earlier, when it was around 30.94 trillion U.S. dollars.

    ‘https://www.statista.com/statistics/273294/public-debt-of-the-united-states-by-month/#:~:text=U.S.%20publicly%20held%20debt%202013%2D2023%2C%20by%20month&text=In%20August%202023%2C%20the%20public,around%2030.94%20trillion%20U.S.%20dollars.

  14. Just to be clear this isn’t a new thing. These programs have been around for decades, it’s just the fact that the bureaucracy has been so piss poor at doing what they said they’d do that somewhere north or 99% of people who believed that government was the answer were left out to hang.

    Obviously the ethical considerations of “forgiving” a substantial amount of money to someone who is a high income earner should be factored in, but if you can’t buy votes as a politician then what good are you?

      • I believe You left out the biden crime family….

        For reference, please read Alex Marlow’s ‘Breaking Biden”

      • Trump paid plenty of taxes.
        Then again, leftists such as yourself will actually believe what the news media says without question. Never realizing that someone like Trump pays taxes throughout the year, so that their yearly returns in April do not come with a massive bill.

        • When all else fails, call someone a leftist, or a troll or a commie. That’s what you bullies do but usually it’s water off a ducks back. Mud doesn’t stick to Teflon.

          • And… you think you are teflon coated?
            Actually responding to my comments proves otherwise.
            .
            Curiously, you did not address what I said in my comment, instead focusing on a (supposed) personal affront. Tell me, do you still believe Trump did not pay taxes? if so, what do you have to back that up. (Note, his annual tax returns are not proof. Remember, estimated taxes paid throughout the year…)

  15. Good??? Wow. No Greg sorry, the working people are sick of this moron making them pay for this crap! There should be no forgiveness!! You go to school, YOU PAY FOR IT!! It’s not my dam job to pay YOUR WAY thru school!!! Ridiculous!!!! Why the F are we even working!?!
    Pathetic comments like the above come from those who apparently don’t care where their money goes, or they are being paid by the government! Working people are ticked!

    • Your thinking is so small. 2 dimensional. Public service is usually a lower paying job than the private sector. Usually there is a shortage of workers. The government has to fill these needed positions. It’s all part of your job as a member of society to fund it.

    • Yes; why the F are you even working?!? That’s the whole point: to get enough people to just say F it let’s go bowling and when enough of the incentive to work has been plundered and morale has been decimated then the whole system will collapse and VOILA! Slaves R Us! Welcome to the collective (collective poverty that is)! Now go stand in line for your bread that there won’t be enough of.

    • You’re my new hero. I agree with your sentiments. I also have a problem with holding up certain professions as being more noble than others. People should be judged as individuals, not collectively, as part of a group.

    • Greggy doesn’t get it or care too, he’s one of those that soaked up the gravy back in Alaskas fat oil money days, then split for warmer cheaper environments. Weren’t you a “teacher” in one of the villages Greg? Back in the 80s that would have been about as difficult as night security guard at a cardboard box factory.
      Teachers have been getting student loan forgiveness for decades, this is nothing new. Engineers, accountants, computer nerds, business jerks, etc get nothing. I guess those jobs aren’t as important as a teacher.

      • Yes, I was a shop teacher for 2 years. But i’m not sure if that qualifies. Living in Florida isn’t all it’s cracked up to be. Right now we are choking from Canadian wild fires. Can we just get the fires out please? I think you should watch outtakes of the Carol Burnett show. Get in a better mood.

  16. If you must have your debt relieved (it’s automatic for some) and you may be the responsible type who may even want to pay it back, then use the freed-up debt to support anti-Left causses or even better use it to purchase guns and ammo. Lots of it. Or use it to fund the education of your children (if you have any) outside of the public school system. Use the vote-bribing money to thwart those who would try to use it on you that way.

  17. The last I knew was that if you take out a loan, it’s not a gift, that it has to be repaid. I have never ever had any loan forgiven that I’ve taken out. NEVER!!! Is this all about buying votes? Just how much does a vote cost? If my calculations are anywhere close for the 1330 Alaska loans forgiven, it amounts to $67,293 per loan per vote. Chump change!! Especially when it isn’t even the big guy’s money!!

      • So, a lot of people fail to pay back their loans?
        That somehow makes this OK?
        .
        If you get robbed, can I pop by a few weeks later and rob you too? After all, robberies happen all the time.

          • Well, it will make no sense to someone who refuses to examine their own behavior, and refuses to take a look at what they wrote and realize it reads very different than you may have intended.
            .
            Your statement that “many loans are not repaid.” was obviously made to justify this overreach by the government. So, if someone does something wrong, it is OK by you for someone else to do something wrong?

  18. Astounding. There are no loop holes except those crafted by delusion. No one should be excused from paying back loans they willingly agreed to receive and pay back. I had student loans as also did my husband. We are not wealthy but we paid back every penny and never expected anyone to pay our debts. What a joke and insult to the generations of honest hard working people that have paid their student loans off. Disgusting. Add to that this asinine action is just the proverbial tip of the gross irresponsible pork spending iceberg This whole administration is appalling.

  19. As long as Grandpa is creating laws and ignoring others, how about paying off my Visa?

    Just because I knowingly acquired the debt shouldn’t mean I actually have to pay for it.

  20. This is not student loan “forgiveness”….this a transfer of debt from those who benefited from the loan to those who now must pay for it.

    • Spending well beyond their means and accumulating excessive debt.
      Focusing on inane topics that do nothing to stimulate the economy
      Unhindered immigration and dilution of the Roman Culture

    • It’s not at all relevant to the discussion, but since you asked:

      A partial list

      -massive overspending.
      -a failure to anticipate the future.
      – they armed most of the people who sacked them.
      -there was a shortage of men willing to do “grunt work”. Citizenship and opportunities were handed out like candy to persons not at all interested in Romes survival.
      -overall societal decadence.

      The list is quite extensive, but I’m not doing your homework for you. There are any number of YouTube docs that can fill in the gaps.

      Assuming you weren’t just failing to make a vapid point.

  21. Keep printing that free money you moron. Our country is bankrupt. This manipulative moron has done what no president in history has accomplished, Destroying us in 36 months time. Since when does a president have a free run on the tax payers money.

  22. 🐜 I said to thumb: “Why do you lend to nadeeves like me? YOU, KNOW, or should have known, I’m not hireable due to ethnic heritage in Alaska. You know that the unemployment rate is a static 48 percent OF ALL ALASKA NADEEVE ADULTS residing in ANC are permanently unemployed 🐜 it will never change. YOU ARE DEFRAUDING these people by loaning them funds they can never pay back in this region. Is that SO FAIR? :*[ Also, show me where in the US Constitution it expressly states YOU have the subject matter and personal jurisdiction and authority to DO this. (You know what the letter of the law means don’t you?) Just point to it and grunt. I’ll wait…

  23. Yes. This kind of relief is life changing. Life changing for the taxpayers who now have to pay for somebody elses debt and will have an even harder time paying their own bills and put food on the table.

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