I wonder why that limit, and if they'll raise it...
this post was submitted on 12 Jan 2024
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They're doing it in small chunks to make it harder for the Republican's to block it. I think the total is above $120 billion forgiven at this point out of the $400 billion target. Couple hundred million here, few billion there. They've been doing a lot better than most people understand at getting it done as best they can.
My uneducated guess is that banking corps getting "harmed" by the fact they can't suck money out of their borrowers will have to spend more effort putting each order through the courts.
At the very least, the more times that Biden's student loan forgiveness plan is blocked like this, it will get it into voters' heads that it's not the President and Democratic party's failure to act but co-ordinated obstruction by Republicans and the financial institutions.
But, this is the opposite of what it should be. Those who needed less money and were able to pay for the last 10 years straight are likely in the wealthier class.
This was my thought as well, but it's also important that the rule is more generous then the title let's on.
With each additional $1,000 of debt, the window for forgiveness increases by one year. For example, a student who took out $13,000 in loans will now have their debts erased if they've been in repayment for 11 years — or in 12 years for those who borrowed $14,000 and so on.
So... you can't be in repayment for eternity, which is a great change. Now we just need to shorten that time frame to 0.
As the other commenter pointed out, there's a specific political party hamstringing these efforts that need to be voted out.
Probably because Republicans in Congress have been stonewalling the president's student debt forgiveness. He's been forced to lower the amount and the scope of the debt forgiveness several times.
Indeed, I'm curious how they came to that specific number, though, and what they might plan for the future...
I think it's just a bunch of people reading through all of the laws and looking for any way it can be forgiven without congress, and without the SCOTUS.