#saveplan — Public Fediverse posts

Older #StudentLoan borrowers are at risk of losing a chunk of their #SocialSecurity. There's a new bill to prevent that.

Story by Ayelet Sheffey, August 17, 2026

"Student-loan borrowers could lose their Social Security checks if they fall behind on their loan payments. Democratic lawmakers want to put an end to that practice.

"On Monday, Sens. #BernieSanders, #ElizabethWarren, and #EdMarkey introduced a bill to prevent older student-loan borrowers and borrowers with disabilities from facing Social Security garnishment if they default on their payments.

"A fact sheet of the legislation reviewed by Business Insider said that the bill would prohibit the Treasury from seizing Social Security payments, including Social Security Disability Insurance, and protect those borrowers from 'unnecessary forced collections.'

"Sanders said in a statement that 'in the richest country in the history of the world, no senior should have their Social Security payments taken away from them to pay back student debt.'

" 'This is especially true when seniors throughout the country already cannot afford the skyrocketing price of healthcare, prescription drugs, groceries and housing,' Sanders said. "Congress must pass this legislation.'

"The legislation comes as student-loan defaults are at a record high. Over 9 million borrowers were in default as of March, according to the latest Education Department data, which happens when a borrower has missed payments for 270 days.

"The New York Federal Reserve's latest household debt report showed that student-loan delinquencies stood at 10.6% in the second quarter of 2026 — up from 10.3% in the first quarter. Pre-pandemic delinquency rates were around 11%, and researchers said the latest data showed that delinquency is stabilizing. Yet researchers said that number could rise again due to the elimination of the Biden-era SAVE repayment plan, which gave borrowers affordable payments and a shorter timeline to debt relief."

Read more:
https://www.msn.com/en-us/news/other/older-student-loan-borrowers-are-at-risk-of-losing-a-chunk-of-their-social-security-there-s-a-new-bill-to-prevent-that/ar-AA2ahcsA?

#SAVEPlan #StudentLoans #USPol #TrumpSucks #CharacteristicsOfFascism

If this doesn't get folks out onto the streets, I don't know what will! #StudentLoans are a HUGE burden that hangs over a lot of peoples' heads -- and #IncomeDrivenRepayment programs are the only thing keeping them from not being able to make ends meet and / or having their #credit ruined! And taxes on scholarships? Seems the #FascistGrooveThing wants to #SilenceDissent by providing barriers against an #EducatedVoter!

House Republicans mull taxes on scholarships and changes to student loan programs

By CHEYANNE MUMPHREY
Updated 11:51 PM EST, February 8, 2025

"As Republicans in Congress look for ways to slash spending, some legislators are floating new taxes on college #scholarships, an end to #StudentLoan #repayment plans and a big hike in taxes on university endowments.

"The ideas affecting #HigherEducation are among many in circulation among House committees that are exploring ways to cover the cost of extending and expanding tax cuts passed in President Donald Trump’s first term.

"The recommendations are still evolving, and it’s unclear how close any of them will get to being implemented. Regardless, advocates across higher education say they are alarmed to see such proposals gain traction at all with Republicans.

"'It’s shocking to me because this amount of cuts is not happening in reaction to like a budget crisis, like a #recession. This really feels different in the sense that it is not something that there is an external push or a need for. So, it feels more #ideological in a way,' said Jessica Thompson, a higher education policy expert with The Institute for College Access and Success.

"Here is a look at possible federal budget cuts that would affect higher education under the Trump administration:

"Cutting programs that help students pay off college debt

"The U.S. House Committee on Education and the Workforce has suggested several possible ways to overhaul student loan programs. Some would reduce student access to federal aid for college.

"On the chopping block potentially are several plans students can opt into to repay their students loans, including the #SAVEPlan introduced by the Biden administration. That plan doesn’t require borrowers to make payments if they earn less than 225% of the federal poverty line — $32,800 a year for a single person — and prevents interest from adding to balances as long as borrowers make their monthly payments. The SAVE plan was already put on hold after Republicans challenged it. Some plans do not appear to be targeted, including one that caps loan payments based on borrowers’ income level.

[...]

"An end to tax-free status for scholarships

"Scholarships and fellowships have been exempt from taxes as long as they are used for tuition and related expenses. That would change under another proposal that’s up for consideration.

"The changes could create new financial burdens for students and families, advocates say.

"'There’s been great progress in bringing down the costs of higher education. Adjusted for inflation, public university tuition is less now than it was ten years ago,' said Craig Lindwarm, senior vice president of governmental affairs with the Association of Public and Land-Grant Universities. 'But as we look at some of the proposals that are options, many would increase costs on students and families, and I think (the proposals) are heading in the direction that most don’t want to see, which is increasing expenses on students and families.'

Read more:
https://apnews.com/article/trump-administration-education-college-loans-532d52c2ccac8b4be459f7797fb63a73
#USPol #Fascism #CharacteristicsOfFascism #SignsOfFascisn #ResistFascism #Education

I just learned this morning that I don't have to make student loan payments for a while because Biden's #SAVEPlan is blocked in court. This article characterizes borrowers as "in limbo" because of this, but all I'm seeing is 0% interest and no payments. Good stuff, #Republicans. Keep it coming! 😎

#studentLoans #studentLoanForgiveness

https://thecollegeinvestor.com/47160/8th-circuit-court-blocks-bidens-save-plan-completely/