Biden's student loan forgiveness plan can take effect after judge lets restraining order expire
Biden's student loan forgiveness plan can take effect after judge lets restraining order expire
www.nbcnews.com
Biden's student loan forgiveness plan can take effect after judge lets restraining order expire
The headline seems a bit misleading. They're just moving the lawsuit to another venue. States are arguing that forgiving student loans will affect taxes which is bologna because student loans have nothing to do with taxes.
I mean, freeing up money from the payments I could see having the effect if allowing states to bring in more from sales taxes for stuff that folks could then afford to buy, or property taxes maybe for better housing.
It's both. The case is being transferred and the program can go into effect (unless the new venue issues a TRO).
What’s the process for if the new venue doesn’t issue a stay, but the final outcome is that they strike down the relief? (I’m really asking.) My payments start back up, and then a month later they double or triple based on the outcome of the case? I just assumed the new venue would stay the relief from going into effect before making a ruling, but you’ve made me nervous.
It’s completely misleading, to me. As someone with a laughably high student loan balance, my livelihood depends on the outcome of these disingenuous court cases. When I saw this headline, my heart skipped a beat with excitement. But nope, this will only be resolved when there is a final judicial ruling (probably from the Supreme Court, eventually), and this was not that.
Actually, it's not about taxes per se, but state revenue,
Forgiven loans and cancelled loans do indeed cause lost revenue for servicers (since the servicing ends early), so unfortunately this is a legitimate argument. And this this is a state owned company, the lost revenue would have gone into state coffers, so...
It's also a bit bunk as folks winning the lottery and paying off their loans in full early - which they are fully entitled to do - causes the same lost revenue scenario. It's also easy to see a technical fix here (Congress passes an updated law giving Biden and the Department of Ed. to pay back the servicers the potential lost fees and such on each forgiven balance, and then the argument goes away. Instead of backing this, though, they want to punish the student borrowers instead.)
Source: https://www.forbes.com/sites/adamminsky/2024/10/03/judge-transfers-student-loan-forgiveness-lawsuit-in-surprise-win-for-30-million-borrowers/
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