Parents Crushed by Kids' College Debt Get Relief in Biden's Forgiveness Plan

[RandySF]

Millions of Americans could see their loan balances reduced or wiped away under President Joe Biden’s student debt forgiveness program. And it’s not just students who can apply for relief — many parents who supported them through college are also eligible.

The program, which was formally launched on Oct. 17, allows 40 million Americans with federally held student debt to apply for up to $20,000 in forgiveness, depending on their loan type. Included are Parent PLUS loans, which are awarded to parents whose children need help paying for their education beyond any financial aid they’ve received.

The president plans to promote his initiative Friday at Delaware State University. As of Oct. 18, about 12 million people had applied for loan forgiveness, Biden has said.

Parents can borrow the full amount of annual college expenses, minus whatever grants or scholarships their children have been awarded. The interest rate on such loans is typically higher than that of other federal student loans. The rate for the 2022-2023 school year is 7.54%, compared with 4.99% for direct undergraduate loans.

Parent PLUS Loans accounted for about 10% of the $95.9 billion in student aid distributed in the 2020-2021 school year. By the second quarter of 2021, 3.6 million parents held $103.6 billion in such loans. The total amount of outstanding college debt is $1.7 trillion.





https://www.bloomberg.com/news/articles/2022-10-21/are-parent-plus-loans-eligible-for-forgiveness-under-biden-s-plan

[Ferrets are Cool]

1. A federal appeals court has issued a stay temporarily blocking President Joe Biden's plans

ST. LOUIS (AP) — A federal appeals court late Friday issued an administrative stay temporarily blocking President Joe Biden’s plan to cancel billions of dollars in federal student loans.

The Eighth Circuit Court of Appeals issued the stay while it considers a motion from six Republican-led states to block the loan cancellation program. The stay ordered the Biden administration not to act on the program while it considers the appeal.

https://www.huffpost.com/entry/court-temporarily-blocks-bidens-student-loan-forgiveness_n_635330cee4b04cf8f383aea9

[aocommunalpunch]

2. It is truly awe-inspiring to watch these folk

bend themselves into pretzels to avoid helping people. It's like a pathological need to avoid setting forth ANY positive change for people not in the club. Their raison d'etre is to brainstorm ways to keep the screws tight. As my meditation teaches me, letting go is a key way to reduce stress. They seem to BATHE in stress. It's gross.

Oh, and as a ferret rescuer for more than 20 years now, I always love seeing your name and thumbnail. One of my favorite things to do here is visit with the former residents when we board them. They remember us and know they have a forever home waiting when mom/dad comes back soon. Go Team Weezil!

[Ferrets are Cool]

5. Thank you for your hard work with the ferts.

It is so rewarding to rescue a neglected or abused furkid. We have adopted over 30 in the past 20+ years and every one was special.

[bottomofthehill]

3. Yep, got them

The pluses and minuses of being hopelessly middle class. After filling out the financial aid forums, FAFSA, my wife and I learned that my children pretty much only qualify for loans in their names and in ours. We have about $30900 in parent plus loans for our children. I guess we are somewhat lucky in that they range from about 6.4-7.2 depending on the years borrowed.

We were fortunate to be able to help our children get through school.

[OneGrassRoot]

4. I really hope...

that in 2023, assuming Dems have legislative power, that they apply the $20k forgiveness to Parent Plus loans. If the child received the Pell grant which obviously shows need and it was tied to the parents’ financials, it would be great if we could get the full $20k forgiveness. A group of Dems did file something to make that possible but it wouldn’t be addressed until 2023

[MichMan]

6. Don't need legislation, just issue another EO