The Supreme Court rules.
Student Loan Decision
Oral argument set for February 22
and 23, 2023.
BY MARK SHERMAN
Associated Press
Washington – The Supreme Court on Thursday said the Biden administration program to cancel student loans will remain blocked for now, but the justices agreed to take up the case in late winter.
The court’s decision to hear arguments in about three months means it is likely to determine whether the widespread loan cancellations are legal by late June.
That’s about two months before the newly extended pause on loan repayments is set to expire.
The administration had wanted a court order that would have allowed the program to take effect even as court challenges proceed.
But as a fallback, it suggested the high court hold arguments and decide the issue.
What Happens Until The Court Rules?
The Supreme Court declined to lift the stay imposed by the 8th Circuit Court of Appeals so no student loan forgiveness for now.
And Department of Ed. no longer taking student loan forgiveness applications.
Biden’s Student Loan Forgiveness Reckoning – WSJ
Above includes the Biden extension of forbearance previously announced.
So, if the Court rules in June 2023, as expected, no payments due until August, 2023.
Or 60 days after Court rules, whichever comes first.
I am not sure what the record is for kicking the can down the road . . . .
As an election ploy, the gambit is no longer necessary.
It seems the Administration will concentrate arguments on procedure rather than substance.
That is, that the six states that sued have no standing to sue as they are in no way damaged by the ruling.
Rather than arguing that Biden had the right to cancel debt without Congressional authorization.
Restoring Bankruptcy Discharge Is The Answer
For the umpteenth time on this blog.
And elsewhere.
Here is an example of someone for whom $10,000 or $20,000 of relief is, well, a joke.
The story does not say why she fell behind or did not qualify for Public Service Loan Forgiveness but her pay was levied for years to pay off other student loans when:
So, when Michelle opened a letter from her alma mater in July suggesting that her Perkins loan repayments were “severely past due,” she was stunned. Even more confounding than the bill itself was the amount it said she still owed the school: $955,000.02.
Oh, but wait:
The original amount was quickly determined to be a mistake. A spokesperson at the University of Florida attributed the error to a technical issue at ECSI, a company that universities hire to act as a loan servicer for former students repaying balances through the Perkins program.
Only $8,000.
Maybe.
“They said they never received it,” said Mayotte. She noted that, in her experience, miscommunication is common between Perkins loan borrowers and their loan servicers, despite company policies that technically require loan servicers to send borrowers monthly notifications about their bills, especially when they are past due. Unlike other federal student loans that are managed by vendors or servicers affiliated with the Department of Education, Perkins loan servicers have historically been the universities themselves, which then outsource loan servicing tasks to a third party.
Michelle’s story has a happy ending.
That is the exception.
Although Michelle’s exorbitant student loan balance was a mistake, Mayotte said she has worked with a couple of clients before who really do owe close to $1 million for money borrowed to go to school.
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