The Supreme Court is set to announce their decision on whether or not Joe Biden’s student loan is eligible for forgiveness. If the court agrees with Biden, it could cost Trump voters millions of dollars in student loan debt. The case will be heard by the U.S. Supreme Court in October. If you are considering attending law school, I recommend you apply for admission now. In the meantime, you can read more about the current situation here.
What are the major points of the student loan bill of rights?
This week, the U.S. Supreme Court will hear arguments in a case that could have far-reaching implications for all borrowers, from private-sector individuals to public-sector entities such as schools and municipalities. The issue at hand is whether Congress has authority to regulate the lending practices of federal student loan programs and whether borrowers have the right to sue those lenders. The lawsuit against Navient, which was brought by four borrowers who say that they were misled by the company into taking out high-cost loans that they can’t afford, has already inspired a wave of student-lending reform across the country. In fact, a few months ago, Navient announced new rules aimed at preventing students from taking on too many high-cost loans and requiring lenders to provide accurate information to students when they take out loans.
What will happen if the Supreme Court Rules Against Student Loan Program?
I will tell you exactly what is going to happen if the Supreme Court rules against student loan debt forgiveness. I will explain why it is so important that you read this article right now and why this could affect you. But before we get into that, let me explain something else that you might not know. This ruling could be disastrous for student loan borrowers across the country. As of August 1st, 2012, all new federal student loans issued under Title IV will be interest-free for the first 20 months. After 20 months, the new loans will accrue interest at a variable rate between 2.41% and 5.21%. If the Supreme Court rules against the lower courts, borrowers may see their student loan payments jump significantly. Even if a borrower pays back the loan within the first 10 years, they will still have to pay interest on their debt for the remainder of the term of their loan. In addition, the current cap on federal student loan repayment will no longer be in effect, meaning student loan borrowers will no longer be protected from paying more than 10% of their income for the first 10 years.
How the Supreme Court will rule on the case of Biden’s student loan?
The U.S. Supreme Court will soon decide whether Congress has the power to regulate the terms of student loans. A ruling in favor of the government would mean that the Consumer Financial Protection Bureau could require students who borrowed money to repay private student loans to pay higher interest rates. In other words, a ruling against the government would prevent the CFPB from regulating the terms of federally backed student loans. If they rule for Trump and decide that the $1.5 trillion in student loan debt is unconstitutional, the government will still need to pay the loans back. But, that decision is expected to be made on June 5, 2020. If the Supreme Court does agree with Trump, the government may need to refund about $7 billion in payments they’ve already made to holders of the loans.
Conclusion
So far, the student loan crisis has been resolved through legislation. Legislation isn’t always the best option though. With the Supreme Court having recently decided to hear arguments on the constitutionality of the student loan program, it’s likely that we could see some major changes in the near future. The Supreme Court will now decide whether or not the student loan program is unconstitutional. In the meantime, if you’re facing a crisis due to student loan payments, there are still options available to you. Here are some of the most common ones. If you were considering taking out a student loan, and now that you know the details, you have some questions about what happens if the Supreme Court rules against the student loan program? I would say that you should take the time to read my book “The Student Loan Bible” because it covers everything you need to know about the student loan debt crisis. You can also watch the video below that was created by the consumer group called “National Consumer Law Center” to help answer some of those questions. The answers might surprise you.
