Thanks for the helpful link. I’ve shared it already.
@kelsmom
When it says ‘disbursed’…
1-- would that include loans that had been applied for during the 21-22 FAFSA open window but wouldn’t actually be disbursed until the Fall 2022 semester since the tuition due date isn’t until August?
2-- or would that include loans for Fall 2022 as long as the financial aid package was sent to the student by the June cutoff date? (and if so, even if the student didn’t hit accept by the mid-June date?)
Just wondering your thoughts on this.
This answer could be pinned, thank you so much!!
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It only includes loans already disbursed (paid out) on or before June 30, 2022.
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The national emergency is still in force
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Yes. And whether it should be, or whether this is an appropriate use of emergency powers, will be decided by the courts. As others noted, the nexus between the covid emergency and the forgiveness of student loans is not transparent.
Regardless of your opinion on student debt, the manner in which this was accomplished might give one pause, as an unusual expansion of Presidential power. Given the uncertainties over who may or has been President, that power, once granted,is hard to limit
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Are you presuming that the 2 other points in this EO will not work then?
The bullet points:
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Provide targeted debt relief to address the financial harms of the pandemic, fulfilling the President’s campaign commitment.**
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Make the student loan system more manageable for current and future borrowers by:
A. Cutting monthly payments in half for undergraduate loans.**
B. Fixing the broken Public Service Loan Forgiveness (PSLF) program by proposing a rule that borrowers who have worked at a nonprofit, in the military, or in federal, state, tribal, or local government, receive appropriate credit toward loan forgiveness.
3 Protect future students and taxpayers by reducing the cost of college and holding schools accountable when they hike up prices.
Here is the whole plan:
Why not cap/lower the interest rate on student debt instead of outright forgiveness?
the plan does this…
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Commuting to a local college will cost $60,000 here.
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I have looked through the entire plan posted and I do think that many parts of the plan will keep costs down for future borrowers. I really like the loan forgiveness after a certain number of years, the increase in the Pell Grant, and income based repayment features, especially if they become simple enough for most borrowers to use.
But the part that I am most skeptical about is how they will keep schools from increasing the costs above the rate of inflation for other goods and services, because that is where the WH bullet points are most vague. I am also worried about the long term financial ramifications (The budget estimates seem to be best case scenario numbers).
It still must be legally determined whether the Executive Branch of government can make such a large sweeping change. Even if I agreed 100% with every aspect of the Executive Action, it makes me nervous for any one person to have that much power along with the precedent that it sets.
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Wow, that’s crazy and not affordable at all.
Not assuming. I didn’t keep a log, and there are a few exceptions, but yep, most people in my daily life mentioned receiving it or discussed how they would spend/save it, etc.
May be hard to believe in CC LAND, but true in my land.
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This does illustrate the problem, to some extent. There appear to be many Pennsylvania universities throughout the state which charge much less than $60k tuition. Perhaps students could expand the scope of their search, or their commute, in considering schools.
I wish we could somehow have these links in the top post of this thread.
I think all the “popular links” are right under the top post.
I meant @kelsmom specific links!! 
Years in the political marketing realm on both sides of the aisle has me believing much of this may be disingenuous; I don’t think this was done with the intent of coming to full fruition. If it fails it’s great campaign rhetoric. If by chance they win in court, it’s another point for elections. As it stands, this will likely be buried in legal battles past this election cycle. Personally, I wouldn’t plan on this going through for the sake of creating a personal budget. Unfortunately, many who will optimistically bank on the outcome may be left in a worse financial situation if this is successfully challenged in court. I hope borrowers bank as much of the payments as possible in case it falls through.
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Tuition, yes definitely. But students have to pay entire costs, not just tuition and not all can commute. If a student of ours (my school) wants to major in engineering there is no school in commuting distance. Shippensburg just started the major not long ago, but I’m not even sure they are ABET yet.
In my land as well.
Although I still chuckle at the following. I’m on a BoD for a small organization. The other members mostly divided among three types: C-level figures at their main gig, successful self-employed/entrepreneurs, and recipients of inherited businesses/wealth. The youngest member was at the time an underemployed lawyer/entrepreneur whom I’d gotten to know outside our meetings. When I mentioned something along the lines of being PG eligible, she laughed and said something like “No way! How did you pull that off?” I said, “by not making enough money.”
Some circles have no idea that almost 50% of college students are PG eligible. Which means much more than half of all college students would qualify for the PG if HS graduates from all SES levels attended college in equal percentages. Of course, substantially lower than 50% of students at private universities are PG eligible.
A couple of my text-groups are going crazy with joy about how this news will affect their children and/or themselves.
EDIT: If anyone is curious about why I say over half of America would qualify for PG, below is a link to an IRS.gov page that includes xls files. You can choose to sort by AGI. Of 157M returns, approx 78M had AGI’s <$40K, an amount that would easily make eligible for the PG individuals filing as Married or HeadOfHousehold. Depending on the number of children in the family, <$60K might also qualify for PG qualification. The PG boost to this announcement will be a huge help to PG borrowers.
https://www.irs.gov/statistics/soi-tax-stats-individual-statistical-tables-by-size-of-adjusted-gross-income
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Yes, had the relief targeted just PG recipients, it would have been much less controversial.
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