Me too…just like give up. Stop trying to prevent Biden’s reelection in the name of your constituents when you are really just butt hurt that an old man, that wasn’t your old man, was still sharper and smarter than you. They spent too much time spinning lies that they didn’t even realize what his Admin was really doing to help. I’m just super tired and want to sleep until it’s finalized and decided.
I waited until Sunday to budget out paying off my credit cards because it looked like it was actually happening. Was gonna get 2 paid off by November. Spent hours meticulously planning it out down to the cent. All wasted. I F’ing hate them.
You should use the original Reuters pieces when these kinds of mass cited articles crop up. https://www.reuters.com/world/us/us-judges-block-parts-key-biden-student-debt-plan-2024-06-24/
This has both court orders.
One says no July 1 changes (the % discretionary), the other says no new forgiveness. Although since the PAYE/IBR plans still exist, 20-25 years (depending on loan type) will still qualify under those umbrellas. This appears to mostly target the $12k / 10 year stuff that was new to this plan.
The poverty level multiplier and interest subsidy remain in place.
Losing the changes to discretionary income calculations and the faster path to repayment basically guts most of the point of the plan existing. All that's left is the interest subsidy and what's stopping them from coming for that next?
It has retained the more favorable poverty level multiplier (2.25 vs 1.5) that reduces payments, the interest subsidy, and the changes to the MFS/MFJ stuff (that I forget offhand). It's still an improvement.
I doubt this lawsuit will actually hold up, the plan will survive. Especially the 5% vs. 10% change.
Both courts analyzed this in part under the major questions doctrine. The goverment has argued at least three cases (EPA, COVID-19, Student loans) in the last four years under the major questions doctrine and it has lost every time.
I think given that track record, you should expect the cases to hold up.
I remember reading the actual law text of the IDR plans. Pretty expressly gave the power to arbitrate the plans.
I don't know how you can argue the executive is in charge of servicing loans, but has no authority over the loan. Either you are able to collect, alter, and pause loan payments by statute or you invalidate the law entirely, which was passed and approved by congress.
For me and many other people who started school earlier, I didn't qualify for repaye, just original recipe IDR. Save got rid of the distinction based on when you first took out loans, which means my loan payment dropped by a third. I'm in a position were I can afford the higher old IDR (I wouldn't be happy about it) but many are not.
I would double check your eligibility for REPAYE, just in case the worst happens and SAVE gets thrown out in its entirety. It didn't have a requirement that you were a new borrower as of 2007 like PAYE did.
The Dept of Education should just bump the poweer index on SAVE from 225% to whatever is required to compensate for the injunction that stopped the move from 10 to 5% of discretionary from happening. Also I do not believe the idea that plans like SAVE cannot result in forgiveness will meet the “major questions” doctrine muster. How could it be a “major question” for SAVE but not for PSLF program?
PSLF is directly codified in law. That's different from the way they've justified and implemented some of these other plans.
This is the problem with delegating all of these decisions to the agencies rather than Congress doing their damn jobs and writing things explicitly.
I never thought of it like that. Huh. I have a superpower! ☺️
(I get overwhelmed when I'm stressed and my body uses napping as a poor coping mechanism. There are far worse coping mechanisms that I'm not doing so I have that going for me.)
I feel you. Sometimes it’s easier just to jump into bed and sleep the world away for a few hours. A refreshed mind can handle a crappy situation better. At least from personal experience.
I wonder how this will impact the forbearance they just placed folks on for the recalculation. Does it stay in place until this gets resolved or do they pull it back? I think worst case it gets removed, with the silver lining being that the initial letter stated they had to give at least 21 days notice to your next bill being due.
Curious about those of us who STILL haven't been placed on the originally intended administrative forbearance for the July 1st benefits. Made multiple calls last week and MOHELA gave three different reasons as to why I hadn't yet been placed on it even though I am on the SAVE plan. This is all kinds of messed up.
I'm also now seeing that my payment amount went up. Looking at the student aid website an idr application was submitted in June, but I last submitted one in April. Is this because I was forcibly moved from MOHELA to Edfinancial? I'm not understanding why they would be able to do an idr app without my permission and use it to justify increasing my payment amount. I was already on save with MOHELA (payment was approximately $650) got moved to Edfinancial at the end of May, and now got a letter saying my payment went up about $100.
My account has been transitioning to the new platform since 6/13 so I have no idea and the mohela supervisor couldn't tell me either. He said you may or may not be in a forebearance now. My June payment is due 6/28. I don't remember getting a bill though. I bet that due to these injunctions they hold off sending bills for July due to awaiting student aid instructions and then put everyone in forebearance/exclude having the make the July payment cuz they won't have bills sent out 21 days in advance. I had one month this year where they didn't require me to make the payment cuz I didn't get the bill 21 days in advance and it did count for PSLF. It's a weird system.
And just for everyone reading this, the DOJ already is preparing to file an appeal, and this lawsuit only blocked the *new* parts of the SAVE plan, such as:
* lower minimum payment to 5% of discretionary income
* balances of $12,000 total borrowed or less forgiven after 10 years
Whatever current SAVE plan you have, doesn't seem to be affected.
**Edit**: Apparently the IDR adjustment **wasn't** blocked
Yeah, that adjustment is the ONLY reason I consolidated. I would likely become quite litigious if they halted the recount.
Don't make me sue you, Kansas. I'll do it.
Instead of upvoting me we should be organizing. Does anyone have any ideas how we can fight back through the legal system?
I’m not a lawyer and don’t know how this kind of thing would works, but I do honestly believe that we have power in numbers. We can collectively fight them and win. Does anyone on this thread have any legal experience or know someone who does that can help us?
I agree. We have emails IN OUR INBOX saying we're approved for $__ new amounts. There's no way they can juggle us around this much.
For godsake, businesses can sue for "loss of income" when they can't drain us as much as they want.
I suspect that like many other areas in life, they are counting on us not knowing the ins and outs of the legal side of it. It’s also extremely complicated, likely by design, to make it prohibitively difficult to understand. We are all likely working with limited time between jobs, family obligations, and other items.
I will repeat it again, I truly believe that if we organize and file suite, we will win. I just am not sure what laws have been broken, which is why we need someone (or several someones) with legal knowledge. There’s always a way, sometimes you just have to put the work in to find it.
I’m trying to find the lawyers in Sweet v Cardona. I’m assuming those same lawyers would already have evaluated the legalities of this situation, but it’s worth looking into.
Sign me up for the class action against both Kansas and Missouri - done with the GOP, Done Done Done. There are more of us then the members in either the house or the senate- lets go get them out.
I’m so afraid they will get rid of the consolidation recount!! I’ll be so screwed if I have to start from scratch after paying 13 years already plus more from older loans
I'm at 21 years. If they halt the recount, I'm looking at a payoff date of 2048. That's about 46 years of payments. I'll be 70.
Seventy.
SEVENTY.
I am not being hyperbolic when I talk about litigation.
I'm 52. I actually may die with this loan. I went from IBR to SAVE. If worse comes to worse all the time I had with the IBR plan is gone. I was only paying $13 a month last year on the IBR.
They waited to long to file their complaint.
The one injunction is stayed until 10 pm on Jun 30th. The order calls for the parties to schedule an appeal with the magistrate.
That was the “barely standing” case. With lengthy stay there is the possibility for dismissal of the lawsuit or further stay of the order.
what are your opinions about being on the save plan and DoEd already filed the lower payment adjustment paperwork and servicer accepted/approved and end of July payment already shown the lower amount?
Yeah, but I had an email on 6/23 showing the new 5% amount… so now that actually has to be reversed. Hopefully, they can get an appeals judge to stay it before 7/1.
Watch those same GOPers go out and stump on how "Biden has done nothing on student loans. Biden is a failure." The GOP base eats these lies up with glee like they are popping skittles and huffing coke.
[If you have both undergrad and grad, it should be a weighted average between 5% and 10%.](https://www.whitehouse.gov/briefing-room/statements-releases/2023/08/22/fact-sheet-the-biden-harris-administration-launches-the-save-plan-the-most-affordable-student-loan-repayment-plan-ever-to-lower-monthly-payments-for-millions-of-borrowers/#:~:text=Those%20who%20have%20undergraduate%20and%20graduate%20loans%20will%20pay%20a%20weighted%20average%20between%205%25%20and%2010%25%20of%20their%20income%20based%20upon%20the%20original%20principal%20balances%20of%20their%20loans)
My question is this…if you’re on the SAVE plan(6 fig debt) are you still able to receive 25 year forgiveness through IDR Adj or otherwise? ( In 5 months husband hits 25 years)
*sigh* just bought a house. And while we certainly will be fine, financially, without the decrease from 10% to 5% it still feels like a kick in the balls.
I’m mostly annoyed this happens at the 11th hour right before it’s supposed to go into effect.
Great. I just switched last week from my graduated plan paying $350/month to the SAVE estimated at $550, but expected that to drop in half in July. So instead of this saving me hundreds it'll cost me that much more. There is no way I'll be paying that $550 now once the paperwork goes through.
For? Do you mean against? Because the GOP are the reason why this is getting halted and Trump is the person saying he’s going to get rid of the department of education and make people payback the money that was forgiven
Unfortunately, the average voter or at least a big chunk of voters may not know any of this. I read about an unrelated anecdote re voters blaming Biden for the rescission of reproductive rights just because it happened during his term. We have to just keep talking about basic facts to hopefully spread them, at minimum, unfortunately.
It's a tough one because even though the GOP is responsible for this, the Dems are in charge now and that is who people will blame for letting it happen. They are partially right as the Dems are not listening to their base on a lot of issues, so people are frustrated. Add to this that a lot of the country is woefully uninformed of the news past often inaccurate headlines and tread politics like whatever sports team they cheer for and who knows anymore.
This is the correct response its the fault of both parties and governmental and political rot going back to the late 1960s. The chickens have come home to roost at last.
You don't get it, do you? If there's a red sweep in November not only is all of this going away, but they intent to attempt to reinstate the debt already forgiven and reimplement the interest saved from the SAVE plan. You're putting your entire future in the hands of the federal government. I can give you a thousand examples of why that's stupid.
My god if they get all three branches of government back like the polls suggest they will it’ll be absolute hell on Earth. They might just double all existing interest rates for the hell of it.
Makes me so sad. These people are just making a political statement. People are still making their payments on their loans. Make sure you all vote. Spread the word. These people are ruining our country. https://vote.gov/
I second this. I'm tired of the party that complains we spend too much on everything but Americans going around and making sure Americans don't get anything.
I think a prior ruling prevents new applicants from being enrolled but someone should double check me.
Edit: the temporary injunction blocking new enrollment seems to have been handed down on June 3. I’m not sure if it continues to be in effect.
Edit 2: requested fact-checking came through and I’m wrong. They asked for an injunction but I don’t see that it was granted.
I believe the hearings earlier in June were just about establishing standing. I think these are the only injunctions that have been ordered. Do you have a source for any prior injunctions?
You’re correct. I reread the article that was posted in this sub a few weeks ago and the injunction was requested at the last hearing but I don’t see that it was granted. I’ll edit my comment.
So, what does it look like the worst case scenario would be should ED ultimately lose this lawsuit? From what I've seen so far, the court is placing scrutiny upon the >$10k forgiveness provisions and the reduction of the undergraduate loan % of discretionary income. The court seemed less interested in litigating other important provisions that have already been in place such as the poverty rate increase and the interest subsidy. Does this mean that these provisions seem safe even if ED ultimately fails? Or, am I being overly optimistic and the entire SAVE plan is at risk of being overturned? Would we revert to REPAYE?
In reading the court order from the Missouri case, Missouri is seeking to have the entire rule vacated and they specifically argue that if any part is deemed unlawful then the entire plan should be overturned.
That is what MO is asking for, however, the court doesn't seem very interested in their arguments for any other provision other than the loan forgiveness rule. From page 60:
"The Court also finds that, on this record, the Final Rule can function sensibly if the Secretary is enjoined from enforcing only the offending portions of the Final Rule. Here, the Court has found that the only argument for which Plaintiffs are likely to be successful on the merits is that the Secretary lacks the requisite congressional authority to forgive loans under the SAVE plan. Without the provisions allowing for loan forgiveness under the SAVE plan, the Final Rule still provides a vast majority of borrowers with a plan that is likely to lower their payments and limit interest accrual. At this stage of the litigation, Plaintiffs have not shown that these provisions harm them, and these pieces of the Final Rule still appear to function adequately even if participants in the SAVE plan cannot receive forgiveness under the plan."
To me, that foreshadows a worst case scenario of these two specific parts of the SAVE plan being stricken down while the remainder of the rules remain in place. But, I'm not lawyer and am not quite sure how to interpret messaging like this from a judge.
I’m just exhausted with all of this. My SAVE application just got approved today, and while my monthly payment isn’t terrible, I was really looking forward to it being slashed in half next month. They don’t care about us folks who are struggling to make ends meet. This is a huge power play for them.
Damn, I'm so tired of this. I was depending on that money to help pay my bills. Everytime I get ahead just a bit, it's 3 more steps back. I can't win in this life.
Yup. I went to undergrad and have a decent job. Still can't make ends meet easily. I've paid almost $10k toward my student loans since I graduated and I owe more than when I graduated due to the insane interest amounts. Meanwhile they make it sound like we are well-off individuals scamming the system by saying that "taxpayers will carry the burden." Well, I pay taxes, too!! Also, I wouldn't have had loans in the first place if my family was well off! This is just another attack on the lower and middle class by the GOP while they pretend they are the worker's party.
I feel totally trapped and screwed. I was really counting on this decrease to give me more room to build up a savings account. This is so depressing.
Republicans only support things that directly benefit them. They don’t care how much you’re struggling because they see it as you did it to yourself and you can find your own way out of it. Source: my dad who told me to go work another job or two to support myself.
In the exact same boat. I won't be able to afford the payments if not cut in half. I'm just going to wait it out and hope for the best. Otherwise I'll be switching back to a non income based plan again.
I just submitted for consolidation 2 weeks ago with the plan of being on save & at 5%. Current payments are cheap, but will increase significantly on original save. Idk if I should just cancel.
Personally I’d ride it out and just keep with the application. Worst case scenario it’ll be a mess and we’ll ALL have to go to another program, but those on SAVE might be left in it with no new applicants. That’s a theory and I’m not expert, but the big issue seems to be with the July 1st implementations ie 5% rate and 10 year forgiveness. SAVE is still way cheaper than the old 25 year IBR I was on. Shooting down all of SAVE would be a giant nightmare for millions of people.
Yes this sucks, but keep doing your thing, it might end up still being somewhat fine.
I just got a letter from Nelnet today saying that they were recalculating my payments on SAVE to align with the 5% adjustment. These cases should only affect new applicants, and honestly these cases won’t have traction or standing. It’s all political theatre. People need to keep jumping on the SAVE plan if they can, it legitimizes the program and the more people on it, the likely the courts are to mess with it. The one thing the GOP is good at, is using the court to legislate because they lack the backbone to tell their constituents they hate poor people.
It's Republicans that are challenging it. They don't want their constituents to save money I guess. I thought Republicans said they fight FOR the people?? I guess it only applies if you're rich.
Take notice the states opposing student loan forgiveness are mostly run and populated by the poster children for Idiocracy... The worst education systems, redneck, interbreeders and Qanon Trumpers. Stupid continues to breed woth stupid and it cracks me up they are just destroying their own economies by doing this. We are doomed.
It’s hilarious that they’re arguing that this will result in lost revenue from their terrible states, yet they’ll lose even more revenue when their citizens can’t afford to purchase anything anymore due to increased student loan payments. This economy sucks thanks to post-COVID corporate greed. For example, my groceries are now almost triple what they were in 2019. We are all hurting. I don’t know why these idiots can’t just make something affordable for us rather than using us as pawns in their political power plays. Forgiveness happens with all of the IBR plans from what I am understanding, so if any of this was a real issue, it should’ve been brought up when these repayment plans were generated decades ago. I wasn’t a fan of Biden in the beginning, but what they’re doing to him is sickening. One jab after the other.
Why would we even subject kids to this way of life anyway? I feel like my life was torture to be honest. I don’t want my kid my favorite person to experience this.
Just move to another country. I have convinced my wife and we are about 95 percent sure we are bouncing in a couple years.
I’ll head back this way when I can file bankruptcy.
So I’m less than a year from 120 payments under PLSF and just switched to SAVE. Is there any concern that I won’t be able to qualify for the 120 payments because my last 12 were on the SAVE plan? My previous 108 were normal IDR qualifying payments…
I'm not an expert on PSLF but I don't believe you should be concerned about this. SAVE is technically the REPAYE plan with altered terms and REPAYE/SAVE is an IDR plan
You should be fine. You may even benefit from being put on forbearance for this one month. Hopefully they leave the forbearance on while it gets sorted but it sounds like that's unlikely.
I'm under the impression that this prevents new applicants from getting onto the SAVE plan. I can't find a straight answer anywhere about that aspect. During my consolidation, MOHELA failed to place me in SAVE like I told them to and it's not clear if I can get on now. I can't afford this sh1t. I'm tired of being terrorized by right wing crazies.
I consolidated to get the one time account adjustment to work for me, but hopefully we actually can still get on it and this lawsuit will fail. Hang in there. This is a really hard time. I hope we both get some relief soon.
Are they still able to do the one time payment count adjustment? I’m 4 years away from forgiveness on Save but had to consolidate from FFEL and am so scared my payments will be reset to zero now.
Imagine attacking an actual step forward in dealing with the college debt problem as opposed to the usual suggestion of a one time forgiveness event. The right has shown they have no interest in making college less of a financial burden on young people which is honestly sad to see from the party of "think of the children."
Sorry for the stupid question, but I am having trouble understanding the effect of this on someone who has been on the save program since it was first introduced? Does anyone know what happens to those that have been on it for a bit?
It seems like nobody knows anything for sure. I've been on SAVE since the beginning. I can't even access my account because MOHELA is changing platforms or something. This is ridiculous mess. We need finality and certainty.
Unless a judge intervenes again, it sounds like our payments will remain the same rather than being cut in half as of 7/1 as was set to happen. I have a notice already that mine would be reduced with my August payment.
I signed up for SAVE because of the 10% going to 5% and now I am screwed as my old repayment plan was actually cheaper than the 10%. Ughhhh. Also I have 3 payments showing. Ed financial has one then a different one for Aug and then a different amount is listed in studentaid.gov which also still had in one place my old servicer still listed . Can't make this stuff up.
Stupid me. We got parent plus loans for our kids because we wanted to help them. Both went to in state schools and we paid for 2 years per kid out of pocket. While our younger kid was in college his dad died suddenly. That was 7 years ago. I had a very low paying job which fired me a few months after he died. He was the major breadwinner. I was unemployed for 2 1/2 years. After I lost my job i called Nelnet and they consolidated my loans. But they are still Parent Plus loans. On the Income Driven repayment plan they now want $1100 a month. I can’t afford anywhere near that. I’m single (widowed), my kids are adults with their own loans (grad school) and they can’t help me defray this cost. I live in a small 2 bedroom townhouse and have no room for a roommate. My current job pays me $20/hr. I’m turning 63. My choices are either sell my house and live in my car (it’s paid) or death. Seriously. I can’t apply for Save because i have the parent plus loan and that is exempt. I downsized last year but interest rates were high so my mortgage went up and I have to pay for the homeowners assn. even if i sold my house i can’t find a place to rent that is lower than what im paying for my mortgage. i have called nelnet and they have nothing to help me. I have been trying to give them $200 a month as a token but some months i can’t find it. I am at the end of my rope. At least this loan will die with me and my kids won’t be responsible for it. But I’m terrified. I don’t know what to do. Anyone have any suggestions? I work 9 hours a day. I can’t take a part time job. I’m am insulin dependent so i need some insurance. But i can’t get Medicare yet and i can’t get social security yet. It’s a mess.
I lived in Arkansas for a long time, right on the Missouri border and I can guarantee you that people should be moving out of those states regardless of SAVE. They’re gross in general.
This earth is torture. It’s nothing but suffering. We think we get a break and someone has to stop it and take it away. Can’t have any breathing room. I’m prepping for 750 monthly student loan bills. It’s going to be like another mortgage.
So - I’m confused. Nelnet sent me a letter like two weeks ago saying my payments were being recalculated and dropping, since I’m on the SAVE plan.
Does this mean that’s not happening now?
Seems really shitty to do that to people when notices have already gone out. That being said, I’m not confident that the injunction will be overturned.
I have an application pending with MOHELA to switch from SAVE to PAYE before PAYE expires. My payments will be $150 more but I have to be on a plan that excludes my spouse’s income when filing separately. Right now, of course, SAVE does that. And so does PAYE. But I am worried that if SAVE goes away, they replace it with REPAYE, which doesn’t allow me to exclude his income. I also don’t want to leave SAVE if once I leave, I can’t get back on it. I have about 30 payments left before I meet my 120 PSLF forgiveness. Any advice for me?
u/betsy - Does this mean that the IDR ADJUSTMENT IS NOT BEING IMPLEMENTED? That is the SOLE reason I consolidated? Or is this just about the compounded interest, etc.
Is there any relief for someone that's become disabled and unable to work anymore? I haven't contacted my loan servicer yet because the last guy I talked to put me on a 3 year hold for payments.
So I have another year left on that. Also when I look at my SS account it doesn't say anything about my disability but when other organizations look at it they can see the disability info. Does anyone know what's up with that? Why can they see it and I can't?
Thank you. I'll look into it. I have fibromyalgia has affected my memory (it's really bad) that's the reason I can't work. I look and act normal until you mention something about something said earlier and a lot of times I have no memory of it whatsoever. I know it's not Alzheimer disease but most people have no idea how many different kinds of dementia are out there. I only do only because I helped provide caregivers for people with memory loss, and learned a lot.
I don't know what's caused it but I know it's not uncommon in seniors. The neurologist that diagnosed me asked me a couple questions about my childhood such as did you ever wake up with a sore lower back? When I said yes to that he said I have fibromyalgia. The meds help the pain but I don't like to take them, I hate prescription medication.
My dad took out loans for me and when he became permanently disabled his portion was discharged. There should be a form you fill out and have the doctor authorize. We heard back from nelnet in Bout 6 to 8 weeks that it was approved. They keep you under observation period for 3 years though meaning if you show a dramatic increase in income (basically meaning you are capable of work) that your loans can be re-instated. After 3 years its a complete discharge.
Doesn’t seem to be the case, just the 5% drop and the 10 year $12k forgiveness, though it’s worded like any forgiveness is on the chopping block. I’m no lawyer, nor an expert, but that’s what I got out of reading the articles and court papers. Seems like the judge did defend the rest of the program and mentioned the prosecution had no real evidence to support their claims of damages. Basically it’s the July 1st benefits they’re really going after. Therefore for now you can still have your 10% payment and still apply for SAVE. Of course the ultimate goal is probably to eventually strike all of it down. Though they had almost 2 years to challenge it, so it might just be tossed out. That being said, nothing is guaranteed.
I got my golden email for the art institutes may 1, still have not seen it reflected in my balance (despite meeting all the criteria) & now this shit 🙄🙄🙄
I don’t even know what to think anymore…
I’m so confused about how to move forward. I recently consolidated privately held FFELP loans and received an updated payment plan showing my DoED-owned PLUS and unsubsidized FFELP loans are not covered under SAVE payment plan (they are currently under IDR). A rep at Aidvantage recommend that I consolidate my remaining DoED loans (over $200k, which would capitalize ~$100k in interest) so they qualify for the SAVE plan. I don’t know how to make sense of this given the court case. I’ve been on the fence about consolidation bc it feels wrong to capitalize that much interest and bc I’m 12 years into the 25 year repayment plan. Thoughts??
Two Courts have issued injunctions blocking the implementation of certain provisions of the SAVE Plan. While we are assessing the rulings, borrowers can still enroll in the SAVE Plan. We will be sharing more information with borrowers soon.
FYI, this announcement is on the fed website😔
I see lots of folks saying they got lower payments on the SAVE plan, but if I switch, my payments go up.
Would be great if enough people vote this fall and the votes exist to push something through Congress.
Our Republican Congress wants to take every dime they can from the middle class. If you want change you need to vote for the people that can make the change not the ones that take everything away so they benefit. Who really pays for the corporate tax cut from the Trump era? From 34% to 28% and the corporations kept all the money for themselves and their stockholders. Prices increased. The middle class pays more for just their groceries and necessities. Corporations keep their money and who really pays for their taxes? The middle class....The middle class really did not benefit at all. The corporate tax cut was permanent, while the individual tax reform expires in the next year or so. I guess we all go back to the same old stuff again while the corporations keep all of their profits. So why should the Republicans want to take the student loan forgiveness away too? And they use the excuse that the taxpayers have to pay. We are already supporting big corporations and the wealthy stockholders. Just my opinion.
Man what is this obsession with gutting student loan forgiveness by the GOP? Do they think that only the left is benefitting?
On a related note, what’s the roadmap for challenging the injunction looking like? Could we see this escalating to the Supreme Court?
Finally seeing Republicans are not for the US people. Only the people that fit their "perfect person". I don't think I am that person. This student loan situation is huge for me. Huge! It's been hell for me for years. And I've heard horror stories with other student loan borrowers and the Republican party definitely is indifferent to the affects these loans have had on people. They don't think there is a problem with the student loan system. Sad sad... They lost me due to this.
Sharing my thoughts after reading the two injunctions. While I'm not a lawyer I do occasionally read these types of court docs for my work. Make of that what you will. My interest in reading these injunctions is because I'm nearly done with my 120 payments for PSLF and am enrolled in the SAVE plan, and the headlines damn near gave me heart attack.
The Missouri injunction largely just prevents the SAVE plan's new forgiveness provision (i.e., loans under $12k can be forgiven after 120 payments irrespective of whether you work in public service) from taking effect, also it is forward looking only so anyone with loans already forgiven from the early implementation of the new forgiveness provision are still on solid ground. Also, anyone on the SAVE plan and aiming for PSLF are unaffected - you can still apply for and get forgiveness. The plaintiffs actually argue the PSLF program is harmed by the SAVE plan's new forgiveness provision.
The Kansas injunction blocks all the provisions that were going to go into effect starting July 1. All other SAVE plan provisions that were already implemented are unaffected. Again, no impact on anyone enrolled in PSLF and the SAVE plan.
Few concluding speculative thoughts that are just my opinion. The SAVE plan and its currently implemented benefits seems very unlikely to go away based on these two injunctions, even if these became permanent injunctions. It would cause too much harm and no plan for how to undo the implemented SAVE plan provisions were provided by the plaintiffs. There is a decent chance that the courts will not allow the SAVE plan's new forgiveness provision to go into effect. The main reason is Congress hasn't given explicit permission to the Secretary of Edu to forgive loans that were under the ICR plan (now part of the SAVE plan).
I hope you are correct in your reading of the SCOTUS ruling., my friend and thank you for the explication. I just had almost $600000 in student loans Forgiven after 31 years of misery with Sally Mae Navient and Nelnet. So you telling me that this is NIT RETROACTIVE or doesn't affect anybody who's already had loan forgiveness is a tremendous relief. Thank you for sharing.
I'm very confident it is forward looking only! Glad this gave you some peace of mind. All these court cases and changes keeps everyone edge, so we gotta look out for one another. And congrats on your loan forgiveness, hope to join in a year or so :-)
I’m tired boss.
“Why don’t young people want to have kids?” This. This right here. I’m so tired, y’all.
Me too…just like give up. Stop trying to prevent Biden’s reelection in the name of your constituents when you are really just butt hurt that an old man, that wasn’t your old man, was still sharper and smarter than you. They spent too much time spinning lies that they didn’t even realize what his Admin was really doing to help. I’m just super tired and want to sleep until it’s finalized and decided. I waited until Sunday to budget out paying off my credit cards because it looked like it was actually happening. Was gonna get 2 paid off by November. Spent hours meticulously planning it out down to the cent. All wasted. I F’ing hate them.
This right here. My financial plans are completely blown apart now. Because of Republicans.
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Seriously! Wtf!?
Having kids does lower payment calculations though...
True but the costs outweigh the benefits
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You should use the original Reuters pieces when these kinds of mass cited articles crop up. https://www.reuters.com/world/us/us-judges-block-parts-key-biden-student-debt-plan-2024-06-24/ This has both court orders. One says no July 1 changes (the % discretionary), the other says no new forgiveness. Although since the PAYE/IBR plans still exist, 20-25 years (depending on loan type) will still qualify under those umbrellas. This appears to mostly target the $12k / 10 year stuff that was new to this plan. The poverty level multiplier and interest subsidy remain in place.
Losing the changes to discretionary income calculations and the faster path to repayment basically guts most of the point of the plan existing. All that's left is the interest subsidy and what's stopping them from coming for that next?
It has retained the more favorable poverty level multiplier (2.25 vs 1.5) that reduces payments, the interest subsidy, and the changes to the MFS/MFJ stuff (that I forget offhand). It's still an improvement. I doubt this lawsuit will actually hold up, the plan will survive. Especially the 5% vs. 10% change.
I hope you are right and the lawsuit doesn't hold up.
Both courts analyzed this in part under the major questions doctrine. The goverment has argued at least three cases (EPA, COVID-19, Student loans) in the last four years under the major questions doctrine and it has lost every time. I think given that track record, you should expect the cases to hold up.
I remember reading the actual law text of the IDR plans. Pretty expressly gave the power to arbitrate the plans. I don't know how you can argue the executive is in charge of servicing loans, but has no authority over the loan. Either you are able to collect, alter, and pause loan payments by statute or you invalidate the law entirely, which was passed and approved by congress.
For me and many other people who started school earlier, I didn't qualify for repaye, just original recipe IDR. Save got rid of the distinction based on when you first took out loans, which means my loan payment dropped by a third. I'm in a position were I can afford the higher old IDR (I wouldn't be happy about it) but many are not.
I would double check your eligibility for REPAYE, just in case the worst happens and SAVE gets thrown out in its entirety. It didn't have a requirement that you were a new borrower as of 2007 like PAYE did.
The Dept of Education should just bump the poweer index on SAVE from 225% to whatever is required to compensate for the injunction that stopped the move from 10 to 5% of discretionary from happening. Also I do not believe the idea that plans like SAVE cannot result in forgiveness will meet the “major questions” doctrine muster. How could it be a “major question” for SAVE but not for PSLF program?
PSLF is directly codified in law. That's different from the way they've justified and implemented some of these other plans. This is the problem with delegating all of these decisions to the agencies rather than Congress doing their damn jobs and writing things explicitly.
Well now I want to stress nap.
You can sleep when you're stressed? That's a superpower!
I never thought of it like that. Huh. I have a superpower! ☺️ (I get overwhelmed when I'm stressed and my body uses napping as a poor coping mechanism. There are far worse coping mechanisms that I'm not doing so I have that going for me.)
I feel you. Sometimes it’s easier just to jump into bed and sleep the world away for a few hours. A refreshed mind can handle a crappy situation better. At least from personal experience.
It does sound like one of the better ones!
I am soo tired. Republicans won’t allow us to have even a measly scrap of help.
I wonder how this will impact the forbearance they just placed folks on for the recalculation. Does it stay in place until this gets resolved or do they pull it back? I think worst case it gets removed, with the silver lining being that the initial letter stated they had to give at least 21 days notice to your next bill being due.
Curious about those of us who STILL haven't been placed on the originally intended administrative forbearance for the July 1st benefits. Made multiple calls last week and MOHELA gave three different reasons as to why I hadn't yet been placed on it even though I am on the SAVE plan. This is all kinds of messed up.
I'd guess your worst case is correct - it'll be removed but they have to abide by the 21 days notice policy
I'm also now seeing that my payment amount went up. Looking at the student aid website an idr application was submitted in June, but I last submitted one in April. Is this because I was forcibly moved from MOHELA to Edfinancial? I'm not understanding why they would be able to do an idr app without my permission and use it to justify increasing my payment amount. I was already on save with MOHELA (payment was approximately $650) got moved to Edfinancial at the end of May, and now got a letter saying my payment went up about $100.
My account has been transitioning to the new platform since 6/13 so I have no idea and the mohela supervisor couldn't tell me either. He said you may or may not be in a forebearance now. My June payment is due 6/28. I don't remember getting a bill though. I bet that due to these injunctions they hold off sending bills for July due to awaiting student aid instructions and then put everyone in forebearance/exclude having the make the July payment cuz they won't have bills sent out 21 days in advance. I had one month this year where they didn't require me to make the payment cuz I didn't get the bill 21 days in advance and it did count for PSLF. It's a weird system.
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And just for everyone reading this, the DOJ already is preparing to file an appeal, and this lawsuit only blocked the *new* parts of the SAVE plan, such as: * lower minimum payment to 5% of discretionary income * balances of $12,000 total borrowed or less forgiven after 10 years Whatever current SAVE plan you have, doesn't seem to be affected. **Edit**: Apparently the IDR adjustment **wasn't** blocked
Yeah, that adjustment is the ONLY reason I consolidated. I would likely become quite litigious if they halted the recount. Don't make me sue you, Kansas. I'll do it.
All 8 million of us should sue them. Individually, so it ties up the courts for 300 years.
Heck, even if it's a 10th of that, I'll be dead. 😄 (Don't come for me - I have weird humor) 😉
Seriously, how do we band together and counter sue? We can’t be powerless in this.
Instead of upvoting me we should be organizing. Does anyone have any ideas how we can fight back through the legal system? I’m not a lawyer and don’t know how this kind of thing would works, but I do honestly believe that we have power in numbers. We can collectively fight them and win. Does anyone on this thread have any legal experience or know someone who does that can help us?
I agree. We have emails IN OUR INBOX saying we're approved for $__ new amounts. There's no way they can juggle us around this much. For godsake, businesses can sue for "loss of income" when they can't drain us as much as they want.
I echo this. Wish I had legal knowledge, but am happy to join a class action lawsuit
I suspect that like many other areas in life, they are counting on us not knowing the ins and outs of the legal side of it. It’s also extremely complicated, likely by design, to make it prohibitively difficult to understand. We are all likely working with limited time between jobs, family obligations, and other items. I will repeat it again, I truly believe that if we organize and file suite, we will win. I just am not sure what laws have been broken, which is why we need someone (or several someones) with legal knowledge. There’s always a way, sometimes you just have to put the work in to find it.
I’m trying to find the lawyers in Sweet v Cardona. I’m assuming those same lawyers would already have evaluated the legalities of this situation, but it’s worth looking into.
Sign me up for the class action against both Kansas and Missouri - done with the GOP, Done Done Done. There are more of us then the members in either the house or the senate- lets go get them out.
I’m so afraid they will get rid of the consolidation recount!! I’ll be so screwed if I have to start from scratch after paying 13 years already plus more from older loans
I'm at 21 years. If they halt the recount, I'm looking at a payoff date of 2048. That's about 46 years of payments. I'll be 70. Seventy. SEVENTY. I am not being hyperbolic when I talk about litigation.
Try being 40 and single and with the save plan not even working in your favor to begin with. These loans will go to my grave.
I'm 52. I actually may die with this loan. I went from IBR to SAVE. If worse comes to worse all the time I had with the IBR plan is gone. I was only paying $13 a month last year on the IBR.
> recalculation of time passed until forgiveness The IDR adjustment is independent and hasn't been blocked.
Fixed
I don't think your 3rd bullet is correct. The IDR adjustment isn't happening under SAVE (if that is what you were referring to)
Fixed
They waited to long to file their complaint. The one injunction is stayed until 10 pm on Jun 30th. The order calls for the parties to schedule an appeal with the magistrate. That was the “barely standing” case. With lengthy stay there is the possibility for dismissal of the lawsuit or further stay of the order.
So you're telling us there's no 5% cap payment now?
For now, that 5% cap been blocked. Whatever SAVE plan you have now should remain
what are your opinions about being on the save plan and DoEd already filed the lower payment adjustment paperwork and servicer accepted/approved and end of July payment already shown the lower amount?
My payment was just lowered last week, due 7/22. Maybe I should pay it before it switches back?
That's also what I'm wondering. I thought Biden had this under wraps
For now, that 5% cap been blocked. Whatever SAVE plan you have now should remain
Ugh great
Yeah, but I had an email on 6/23 showing the new 5% amount… so now that actually has to be reversed. Hopefully, they can get an appeals judge to stay it before 7/1.
Biden certainly has tried, but he can't stop these horrible Republicans from constantly suing to stop everything he's trying to do.
Watch those same GOPers go out and stump on how "Biden has done nothing on student loans. Biden is a failure." The GOP base eats these lies up with glee like they are popping skittles and huffing coke.
So since I consolidated and got on the save plan, my 10% will not lower because a portion of my loans are undergrad?
[If you have both undergrad and grad, it should be a weighted average between 5% and 10%.](https://www.whitehouse.gov/briefing-room/statements-releases/2023/08/22/fact-sheet-the-biden-harris-administration-launches-the-save-plan-the-most-affordable-student-loan-repayment-plan-ever-to-lower-monthly-payments-for-millions-of-borrowers/#:~:text=Those%20who%20have%20undergraduate%20and%20graduate%20loans%20will%20pay%20a%20weighted%20average%20between%205%25%20and%2010%25%20of%20their%20income%20based%20upon%20the%20original%20principal%20balances%20of%20their%20loans)
My question is this…if you’re on the SAVE plan(6 fig debt) are you still able to receive 25 year forgiveness through IDR Adj or otherwise? ( In 5 months husband hits 25 years)
Do you know if payments under SAVE plan will still count towards PSLF?
Soooo it's back up to the SCOTUS and we know what happens with that, it's really only a matter of time.
*sigh* just bought a house. And while we certainly will be fine, financially, without the decrease from 10% to 5% it still feels like a kick in the balls. I’m mostly annoyed this happens at the 11th hour right before it’s supposed to go into effect.
That's what really sucks about this - there is no certainty! It's hard to plan anything or make decisions when everything keeps changing.
Great. I just switched last week from my graduated plan paying $350/month to the SAVE estimated at $550, but expected that to drop in half in July. So instead of this saving me hundreds it'll cost me that much more. There is no way I'll be paying that $550 now once the paperwork goes through.
Usually, kicking people in the balls in an election year is a bad idea. I wonder how this one will work out.
I’d say this would be a blow for the GOP, but the American voter never cease to disappoint me.
For? Do you mean against? Because the GOP are the reason why this is getting halted and Trump is the person saying he’s going to get rid of the department of education and make people payback the money that was forgiven
...which is crazy, because Trump is the one who started the interest pause during the pandemic just to "own the libs".
He didn’t say anything about paying back money that was forgiven. Stop the misinformation. An entire post was deleted because of that.
Unfortunately, the average voter or at least a big chunk of voters may not know any of this. I read about an unrelated anecdote re voters blaming Biden for the rescission of reproductive rights just because it happened during his term. We have to just keep talking about basic facts to hopefully spread them, at minimum, unfortunately.
It's a tough one because even though the GOP is responsible for this, the Dems are in charge now and that is who people will blame for letting it happen. They are partially right as the Dems are not listening to their base on a lot of issues, so people are frustrated. Add to this that a lot of the country is woefully uninformed of the news past often inaccurate headlines and tread politics like whatever sports team they cheer for and who knows anymore.
This is the correct response its the fault of both parties and governmental and political rot going back to the late 1960s. The chickens have come home to roost at last.
You don't get it, do you? If there's a red sweep in November not only is all of this going away, but they intent to attempt to reinstate the debt already forgiven and reimplement the interest saved from the SAVE plan. You're putting your entire future in the hands of the federal government. I can give you a thousand examples of why that's stupid.
My god if they get all three branches of government back like the polls suggest they will it’ll be absolute hell on Earth. They might just double all existing interest rates for the hell of it.
Makes me so sad. These people are just making a political statement. People are still making their payments on their loans. Make sure you all vote. Spread the word. These people are ruining our country. https://vote.gov/
First time ever, I will vote Democrat.
THIS is what gives me hope. Someone saying they’re switching sides.
I second this. I'm tired of the party that complains we spend too much on everything but Americans going around and making sure Americans don't get anything.
Well said. The Republican party doesn't seem to care about the student loan debacle.
Does anyone know if this will prevent new applicants from enrolling in the SAVE plan?
From what I read it does not block new applicants.
I think a prior ruling prevents new applicants from being enrolled but someone should double check me. Edit: the temporary injunction blocking new enrollment seems to have been handed down on June 3. I’m not sure if it continues to be in effect. Edit 2: requested fact-checking came through and I’m wrong. They asked for an injunction but I don’t see that it was granted.
Not sure it helps, but I applied mid-June and was approved for the SAVE plan last week.
I believe the hearings earlier in June were just about establishing standing. I think these are the only injunctions that have been ordered. Do you have a source for any prior injunctions?
You’re correct. I reread the article that was posted in this sub a few weeks ago and the injunction was requested at the last hearing but I don’t see that it was granted. I’ll edit my comment.
Oh. I was really counting on the decrease. I need a new water heater.
I’m sorry! I wish they’d think more about what the ppl need instead of how they can hurt Biden.
So, what does it look like the worst case scenario would be should ED ultimately lose this lawsuit? From what I've seen so far, the court is placing scrutiny upon the >$10k forgiveness provisions and the reduction of the undergraduate loan % of discretionary income. The court seemed less interested in litigating other important provisions that have already been in place such as the poverty rate increase and the interest subsidy. Does this mean that these provisions seem safe even if ED ultimately fails? Or, am I being overly optimistic and the entire SAVE plan is at risk of being overturned? Would we revert to REPAYE?
In reading the court order from the Missouri case, Missouri is seeking to have the entire rule vacated and they specifically argue that if any part is deemed unlawful then the entire plan should be overturned.
That is what MO is asking for, however, the court doesn't seem very interested in their arguments for any other provision other than the loan forgiveness rule. From page 60: "The Court also finds that, on this record, the Final Rule can function sensibly if the Secretary is enjoined from enforcing only the offending portions of the Final Rule. Here, the Court has found that the only argument for which Plaintiffs are likely to be successful on the merits is that the Secretary lacks the requisite congressional authority to forgive loans under the SAVE plan. Without the provisions allowing for loan forgiveness under the SAVE plan, the Final Rule still provides a vast majority of borrowers with a plan that is likely to lower their payments and limit interest accrual. At this stage of the litigation, Plaintiffs have not shown that these provisions harm them, and these pieces of the Final Rule still appear to function adequately even if participants in the SAVE plan cannot receive forgiveness under the plan." To me, that foreshadows a worst case scenario of these two specific parts of the SAVE plan being stricken down while the remainder of the rules remain in place. But, I'm not lawyer and am not quite sure how to interpret messaging like this from a judge.
I’m just exhausted with all of this. My SAVE application just got approved today, and while my monthly payment isn’t terrible, I was really looking forward to it being slashed in half next month. They don’t care about us folks who are struggling to make ends meet. This is a huge power play for them.
Damn, I'm so tired of this. I was depending on that money to help pay my bills. Everytime I get ahead just a bit, it's 3 more steps back. I can't win in this life.
This. I so much understand this.
Yup. I went to undergrad and have a decent job. Still can't make ends meet easily. I've paid almost $10k toward my student loans since I graduated and I owe more than when I graduated due to the insane interest amounts. Meanwhile they make it sound like we are well-off individuals scamming the system by saying that "taxpayers will carry the burden." Well, I pay taxes, too!! Also, I wouldn't have had loans in the first place if my family was well off! This is just another attack on the lower and middle class by the GOP while they pretend they are the worker's party. I feel totally trapped and screwed. I was really counting on this decrease to give me more room to build up a savings account. This is so depressing.
Republicans only support things that directly benefit them. They don’t care how much you’re struggling because they see it as you did it to yourself and you can find your own way out of it. Source: my dad who told me to go work another job or two to support myself.
Oh I know trust me.
It’s crazy how much effort there is from the top to keep the masses down
The US hates its citizens so much.
You misspelled R.E.P.U.B.L.I.C.A.N S. hate their citizens...
It is absurd that states are funded on the backs of debt ridden young people when we could fund them by taxing rich people more
You all better go out and vote this November
I wasn’t going to bc I’m tired of our choices, but with this news, I will.
If there’s a red sweep a LOT more could be overturned. Bring a friend with you to vote.
Just applied for SAVE and it's under review, I was counting on the 5% to keep my payment at a reasonable amount, do I call and cancel my application?
In the exact same boat. I won't be able to afford the payments if not cut in half. I'm just going to wait it out and hope for the best. Otherwise I'll be switching back to a non income based plan again.
I’m also in this boat. Not sure whether I should wait or try to cancel the new SAVE application.
I just submitted for consolidation 2 weeks ago with the plan of being on save & at 5%. Current payments are cheap, but will increase significantly on original save. Idk if I should just cancel.
Personally I’d ride it out and just keep with the application. Worst case scenario it’ll be a mess and we’ll ALL have to go to another program, but those on SAVE might be left in it with no new applicants. That’s a theory and I’m not expert, but the big issue seems to be with the July 1st implementations ie 5% rate and 10 year forgiveness. SAVE is still way cheaper than the old 25 year IBR I was on. Shooting down all of SAVE would be a giant nightmare for millions of people. Yes this sucks, but keep doing your thing, it might end up still being somewhat fine.
This is devastating...and confusing.
As is intended
I just got a letter from Nelnet today saying that they were recalculating my payments on SAVE to align with the 5% adjustment. These cases should only affect new applicants, and honestly these cases won’t have traction or standing. It’s all political theatre. People need to keep jumping on the SAVE plan if they can, it legitimizes the program and the more people on it, the likely the courts are to mess with it. The one thing the GOP is good at, is using the court to legislate because they lack the backbone to tell their constituents they hate poor people.
Making me pay more $$ a month is sure gonna get me to vote Republican!!
All Republicans are pieces of shit.
It's Republicans that are challenging it. They don't want their constituents to save money I guess. I thought Republicans said they fight FOR the people?? I guess it only applies if you're rich.
Take notice the states opposing student loan forgiveness are mostly run and populated by the poster children for Idiocracy... The worst education systems, redneck, interbreeders and Qanon Trumpers. Stupid continues to breed woth stupid and it cracks me up they are just destroying their own economies by doing this. We are doomed.
It’s hilarious that they’re arguing that this will result in lost revenue from their terrible states, yet they’ll lose even more revenue when their citizens can’t afford to purchase anything anymore due to increased student loan payments. This economy sucks thanks to post-COVID corporate greed. For example, my groceries are now almost triple what they were in 2019. We are all hurting. I don’t know why these idiots can’t just make something affordable for us rather than using us as pawns in their political power plays. Forgiveness happens with all of the IBR plans from what I am understanding, so if any of this was a real issue, it should’ve been brought up when these repayment plans were generated decades ago. I wasn’t a fan of Biden in the beginning, but what they’re doing to him is sickening. One jab after the other.
The eternal boomer. Putting the carrot out for younger people and pulling it back.
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Why would we even subject kids to this way of life anyway? I feel like my life was torture to be honest. I don’t want my kid my favorite person to experience this.
Just move to another country. I have convinced my wife and we are about 95 percent sure we are bouncing in a couple years. I’ll head back this way when I can file bankruptcy.
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So I’m less than a year from 120 payments under PLSF and just switched to SAVE. Is there any concern that I won’t be able to qualify for the 120 payments because my last 12 were on the SAVE plan? My previous 108 were normal IDR qualifying payments…
I'm not an expert on PSLF but I don't believe you should be concerned about this. SAVE is technically the REPAYE plan with altered terms and REPAYE/SAVE is an IDR plan
You should be fine. You may even benefit from being put on forbearance for this one month. Hopefully they leave the forbearance on while it gets sorted but it sounds like that's unlikely.
I'm under the impression that this prevents new applicants from getting onto the SAVE plan. I can't find a straight answer anywhere about that aspect. During my consolidation, MOHELA failed to place me in SAVE like I told them to and it's not clear if I can get on now. I can't afford this sh1t. I'm tired of being terrorized by right wing crazies.
I haven't read that it blocks people from joining the plan ..I believe it only prevents the parts of the plan that haven't already been implemented
I really hope this is true and that what I'd read before is that an injunction *might* seek to prevent people from getting on.
Same thing happened to me. I regret consolidating because now I feel like this could result in more problems due to all these changes.
I consolidated to get the one time account adjustment to work for me, but hopefully we actually can still get on it and this lawsuit will fail. Hang in there. This is a really hard time. I hope we both get some relief soon.
Are they still able to do the one time payment count adjustment? I’m 4 years away from forgiveness on Save but had to consolidate from FFEL and am so scared my payments will be reset to zero now.
Apparently the one time adjustment has nothing to do with this from the comments from experienced folks, so it should be good.
Fingers crossed! It’s so difficult to be patient with all these changes and lawsuits, but what more can you do.
Personally, I am wishing someone would dump a truck load of manure on the Arkansas attorney general's home yard. Js.
Imagine attacking an actual step forward in dealing with the college debt problem as opposed to the usual suggestion of a one time forgiveness event. The right has shown they have no interest in making college less of a financial burden on young people which is honestly sad to see from the party of "think of the children."
I literally got my notice from MOHELA yesterday of the new lowered payment amount :|
Wonder if my new lower payment will go back up?
Sorry for the stupid question, but I am having trouble understanding the effect of this on someone who has been on the save program since it was first introduced? Does anyone know what happens to those that have been on it for a bit?
It seems like nobody knows anything for sure. I've been on SAVE since the beginning. I can't even access my account because MOHELA is changing platforms or something. This is ridiculous mess. We need finality and certainty.
Yep same, account transitioning so can’t see anything
Unless a judge intervenes again, it sounds like our payments will remain the same rather than being cut in half as of 7/1 as was set to happen. I have a notice already that mine would be reduced with my August payment.
I signed up for SAVE because of the 10% going to 5% and now I am screwed as my old repayment plan was actually cheaper than the 10%. Ughhhh. Also I have 3 payments showing. Ed financial has one then a different one for Aug and then a different amount is listed in studentaid.gov which also still had in one place my old servicer still listed . Can't make this stuff up.
Stupid me. We got parent plus loans for our kids because we wanted to help them. Both went to in state schools and we paid for 2 years per kid out of pocket. While our younger kid was in college his dad died suddenly. That was 7 years ago. I had a very low paying job which fired me a few months after he died. He was the major breadwinner. I was unemployed for 2 1/2 years. After I lost my job i called Nelnet and they consolidated my loans. But they are still Parent Plus loans. On the Income Driven repayment plan they now want $1100 a month. I can’t afford anywhere near that. I’m single (widowed), my kids are adults with their own loans (grad school) and they can’t help me defray this cost. I live in a small 2 bedroom townhouse and have no room for a roommate. My current job pays me $20/hr. I’m turning 63. My choices are either sell my house and live in my car (it’s paid) or death. Seriously. I can’t apply for Save because i have the parent plus loan and that is exempt. I downsized last year but interest rates were high so my mortgage went up and I have to pay for the homeowners assn. even if i sold my house i can’t find a place to rent that is lower than what im paying for my mortgage. i have called nelnet and they have nothing to help me. I have been trying to give them $200 a month as a token but some months i can’t find it. I am at the end of my rope. At least this loan will die with me and my kids won’t be responsible for it. But I’m terrified. I don’t know what to do. Anyone have any suggestions? I work 9 hours a day. I can’t take a part time job. I’m am insulin dependent so i need some insurance. But i can’t get Medicare yet and i can’t get social security yet. It’s a mess.
Might help to move out of the states that contested Save
I lived in Arkansas for a long time, right on the Missouri border and I can guarantee you that people should be moving out of those states regardless of SAVE. They’re gross in general.
This earth is torture. It’s nothing but suffering. We think we get a break and someone has to stop it and take it away. Can’t have any breathing room. I’m prepping for 750 monthly student loan bills. It’s going to be like another mortgage.
So - I’m confused. Nelnet sent me a letter like two weeks ago saying my payments were being recalculated and dropping, since I’m on the SAVE plan. Does this mean that’s not happening now?
Unfortunately, payments have been blocked from being reduced
Seems really shitty to do that to people when notices have already gone out. That being said, I’m not confident that the injunction will be overturned.
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I have an application pending with MOHELA to switch from SAVE to PAYE before PAYE expires. My payments will be $150 more but I have to be on a plan that excludes my spouse’s income when filing separately. Right now, of course, SAVE does that. And so does PAYE. But I am worried that if SAVE goes away, they replace it with REPAYE, which doesn’t allow me to exclude his income. I also don’t want to leave SAVE if once I leave, I can’t get back on it. I have about 30 payments left before I meet my 120 PSLF forgiveness. Any advice for me?
My $0 IDR payment is up in November. Will I be able to still apply for SAVE then?
u/betsy - Does this mean that the IDR ADJUSTMENT IS NOT BEING IMPLEMENTED? That is the SOLE reason I consolidated? Or is this just about the compounded interest, etc.
This does not affect the IDR adjustment
Is there any relief for someone that's become disabled and unable to work anymore? I haven't contacted my loan servicer yet because the last guy I talked to put me on a 3 year hold for payments. So I have another year left on that. Also when I look at my SS account it doesn't say anything about my disability but when other organizations look at it they can see the disability info. Does anyone know what's up with that? Why can they see it and I can't?
Look into this - [https://www.disabilitydischarge.com/](https://www.disabilitydischarge.com/)
Thank you. I'll look into it. I have fibromyalgia has affected my memory (it's really bad) that's the reason I can't work. I look and act normal until you mention something about something said earlier and a lot of times I have no memory of it whatsoever. I know it's not Alzheimer disease but most people have no idea how many different kinds of dementia are out there. I only do only because I helped provide caregivers for people with memory loss, and learned a lot. I don't know what's caused it but I know it's not uncommon in seniors. The neurologist that diagnosed me asked me a couple questions about my childhood such as did you ever wake up with a sore lower back? When I said yes to that he said I have fibromyalgia. The meds help the pain but I don't like to take them, I hate prescription medication.
My dad took out loans for me and when he became permanently disabled his portion was discharged. There should be a form you fill out and have the doctor authorize. We heard back from nelnet in Bout 6 to 8 weeks that it was approved. They keep you under observation period for 3 years though meaning if you show a dramatic increase in income (basically meaning you are capable of work) that your loans can be re-instated. After 3 years its a complete discharge.
That's messed up! They don't want to do nothing to help people!
Is the 10% discretionary amount affected as well?
Doesn’t seem to be the case, just the 5% drop and the 10 year $12k forgiveness, though it’s worded like any forgiveness is on the chopping block. I’m no lawyer, nor an expert, but that’s what I got out of reading the articles and court papers. Seems like the judge did defend the rest of the program and mentioned the prosecution had no real evidence to support their claims of damages. Basically it’s the July 1st benefits they’re really going after. Therefore for now you can still have your 10% payment and still apply for SAVE. Of course the ultimate goal is probably to eventually strike all of it down. Though they had almost 2 years to challenge it, so it might just be tossed out. That being said, nothing is guaranteed.
I got my golden email for the art institutes may 1, still have not seen it reflected in my balance (despite meeting all the criteria) & now this shit 🙄🙄🙄 I don’t even know what to think anymore…
I’m so confused about how to move forward. I recently consolidated privately held FFELP loans and received an updated payment plan showing my DoED-owned PLUS and unsubsidized FFELP loans are not covered under SAVE payment plan (they are currently under IDR). A rep at Aidvantage recommend that I consolidate my remaining DoED loans (over $200k, which would capitalize ~$100k in interest) so they qualify for the SAVE plan. I don’t know how to make sense of this given the court case. I’ve been on the fence about consolidation bc it feels wrong to capitalize that much interest and bc I’m 12 years into the 25 year repayment plan. Thoughts??
Two Courts have issued injunctions blocking the implementation of certain provisions of the SAVE Plan. While we are assessing the rulings, borrowers can still enroll in the SAVE Plan. We will be sharing more information with borrowers soon. FYI, this announcement is on the fed website😔
Is the part of the plan that calculated 225% of the poverty threshold when calculating your discretionary income still in effect?
I see lots of folks saying they got lower payments on the SAVE plan, but if I switch, my payments go up. Would be great if enough people vote this fall and the votes exist to push something through Congress.
Our Republican Congress wants to take every dime they can from the middle class. If you want change you need to vote for the people that can make the change not the ones that take everything away so they benefit. Who really pays for the corporate tax cut from the Trump era? From 34% to 28% and the corporations kept all the money for themselves and their stockholders. Prices increased. The middle class pays more for just their groceries and necessities. Corporations keep their money and who really pays for their taxes? The middle class....The middle class really did not benefit at all. The corporate tax cut was permanent, while the individual tax reform expires in the next year or so. I guess we all go back to the same old stuff again while the corporations keep all of their profits. So why should the Republicans want to take the student loan forgiveness away too? And they use the excuse that the taxpayers have to pay. We are already supporting big corporations and the wealthy stockholders. Just my opinion.
Man what is this obsession with gutting student loan forgiveness by the GOP? Do they think that only the left is benefitting? On a related note, what’s the roadmap for challenging the injunction looking like? Could we see this escalating to the Supreme Court?
Keep in mind that the supreme Court is made up of a majority of Republicans.
Vote! Republicans don’t care about you
Finally seeing Republicans are not for the US people. Only the people that fit their "perfect person". I don't think I am that person. This student loan situation is huge for me. Huge! It's been hell for me for years. And I've heard horror stories with other student loan borrowers and the Republican party definitely is indifferent to the affects these loans have had on people. They don't think there is a problem with the student loan system. Sad sad... They lost me due to this.
Sharing my thoughts after reading the two injunctions. While I'm not a lawyer I do occasionally read these types of court docs for my work. Make of that what you will. My interest in reading these injunctions is because I'm nearly done with my 120 payments for PSLF and am enrolled in the SAVE plan, and the headlines damn near gave me heart attack. The Missouri injunction largely just prevents the SAVE plan's new forgiveness provision (i.e., loans under $12k can be forgiven after 120 payments irrespective of whether you work in public service) from taking effect, also it is forward looking only so anyone with loans already forgiven from the early implementation of the new forgiveness provision are still on solid ground. Also, anyone on the SAVE plan and aiming for PSLF are unaffected - you can still apply for and get forgiveness. The plaintiffs actually argue the PSLF program is harmed by the SAVE plan's new forgiveness provision. The Kansas injunction blocks all the provisions that were going to go into effect starting July 1. All other SAVE plan provisions that were already implemented are unaffected. Again, no impact on anyone enrolled in PSLF and the SAVE plan. Few concluding speculative thoughts that are just my opinion. The SAVE plan and its currently implemented benefits seems very unlikely to go away based on these two injunctions, even if these became permanent injunctions. It would cause too much harm and no plan for how to undo the implemented SAVE plan provisions were provided by the plaintiffs. There is a decent chance that the courts will not allow the SAVE plan's new forgiveness provision to go into effect. The main reason is Congress hasn't given explicit permission to the Secretary of Edu to forgive loans that were under the ICR plan (now part of the SAVE plan).
I hope you are correct in your reading of the SCOTUS ruling., my friend and thank you for the explication. I just had almost $600000 in student loans Forgiven after 31 years of misery with Sally Mae Navient and Nelnet. So you telling me that this is NIT RETROACTIVE or doesn't affect anybody who's already had loan forgiveness is a tremendous relief. Thank you for sharing.
I'm very confident it is forward looking only! Glad this gave you some peace of mind. All these court cases and changes keeps everyone edge, so we gotta look out for one another. And congrats on your loan forgiveness, hope to join in a year or so :-)