Biden administration can move forward with student loan forgiveness, federal judge rules

MicroWave@lemmy.world to News@lemmy.world – 380 points – Biden administration can move forward with student loan forgiveness, federal judge rules
cnbc.com
  • A federal judge will let expire a temporary restraining order against the Biden administration's sweeping new student loan forgiveness plan, which could deliver relief to tens of millions of Americans.
  • The ruling means President Joe Biden may move forward with his administration's student loan forgiveness plan, just weeks before the November election.

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So.. nothing actually changed, they just moved the case to Missouri. Since Missouri has a state-run program that suffers tangible harm from forgiveness, and Georgia didn’t have standing to sue.

The headlines sound really optimistic about what is basically nothingsauce. Sure they can move forward with stuff, but the situation hasn’t really changed that much.

Which is more or less what happened the last time Biden tried to forgive student loans. Eventually Missouri was found to have standing, and all his efforts were thrown out.

Aside from a nagging feeling that it was known this was going to happen, and this was all for political talking points, I wanted to info dump.

A few tidbits from that prior lawsuit:

  • MOHELA supported loan forgiveness, although I can’t recall why. (I think it was about simplifying administration in the face of a bunch of loans that had already paid for themselves in terms of the interest collected. At this point the cost to maintain the loan on their books and or chase accounts they can’t write off is more expensive than attempting to recover the loan.)
  • MOHELA refused to be a plaintiff, and it was the state of Missouri claiming standing.
  • The state of Missouri only had standing due to a voluntary agreement where MOHELA would pay a certain percentage of revenue back to the state of Missouri - something it had not done for nearly a decade. Missouri’s standing was merely technical, and more or less un-realized.
  • Yet it still was used to fuck over millions of people, because Misery loves company.

So many consequential Supreme Court cases lately being decided even though there shouldn't ever have been standing... They all seemed to go one way too....

Thank you for this. I got excited for a moment. I should know better by now.

Yeah, so did I, so I went looking at a few sources, and the takeaway from all of them is what’s above.

The articles are all pretty sparse on detail, but clearly trying to downplay that nothing tangibly changed, and I really don’t fully understand why, when this sort of thing often gets skewered. Maybe because it’s breaking news, and the negativity/reality is yet to come? Maybe it’s a sort of media focus shift toward that stuff actually happening?

Either way, this is definitely one of those “just have to wait and see how this move plays out” sort of things, because it could be great, as the headlines indicate, or it could be the same bullshit all over.

"Tangible harm." Right. Despite the company itself (MOHELA) stating it had no involvement in the original suit that named them as a plaintiff, and as a company that exists solely to process government paperwork, they have no opinion on the matter.

They said this, but it did not matter. The main plaintiff of the case that went to the Supreme Court, didn't even want to be a part of it. They were just a pawn for Boomer Republicans who greedily ate up billions in PPP loans that they may or may not have needed, before pulling the ladder up behind them and making sure nobody else can get anything remotely similar.

Fuck all of these people.

I wonder if they can send a representative and make a motion to dismiss it.

Wouldn't matter. The Biden admin can move to dismiss without them. The motion is decided on the merits, which means it isn't stronger just because it has Mohela's signature on it.

Tl;dr “What if we took some bullshit from over HERE and moved it over THERE”

I just assume I'll have to specify my student loan in my will at this point to hand off to the next family member. Mine is almost old enough to buy beer now.

I'm still voting Democrat no matter what. LOL. I would have to get some sort of brain amoeba infection 🤧 to turn republican. But it doesn't matter either because we don't vote for the president. The electoral college does the voting. We just gotta live with the assholes they vote for.