In a last-second move that surprised no one, the Mammon Mob has leapt to the defense of big bankers and the grave sin of usury.
In a remarkable reversal that will affect the fortunes of many student loan borrowers, the U.S. Department of Education has quietly changed its guidance around who qualifies for President Biden’s sweeping student debt relief plan.
At the center of the change are borrowers who took out federal student loans many years ago, both Perkins loans and Federal Family Education Loans. FFEL loans, issued and managed by private banks but guaranteed by the federal government, were once the mainstay of the federal student loan program until the FFEL program ended in 2010.
An administration official tells NPR roughly 800,000 borrowers would now be excluded from relief. Though many more borrowers could end up getting less relief than they were entitled to under the old guidance. These are the roughly 1.5 million FFEL borrowers who also have Direct Loans, which still qualify for cancellation, though their FFEL loans no longer do.
Pertinent side note: Anybody else noticed how regime organs use soft terms like “guidance” and “rules” instead of talking about laws? I’m no lawyer; it just sounds like an effeminacy tell.
Multiple legal experts tell NPR the reversal in policy was likely made out of concern that the private banks that manage old FFEL loans could potentially file lawsuits to stop the debt relief, arguing that Biden’s plan would cause them financial harm.
When FFEL borrowers consolidate their old loans into federal Direct Loans, these private banks essentially lose business. If these banks’ financial health depends, at least in part, on the assumption that they would be holding and profiting from these debts over the long-term, then losing borrowers to Biden’s debt relief plan could, possibly, constitute harm.
In fact, a new lawsuit filed Thursday by six state attorneys general, makes this very argument. One of the plaintiffs, Missouri, is home to MOHELA, which manages both federal Direct Loans and these old FFEL program loans.
Tfw fraudsters object to making fraud victims whole on the basis that doing so could cause financial harm to fraudsters.
The states suing to stop student debt relief are led by Republicans. Perhaps they’re tired of people pointing out that Conservatives have conserved nothing, so they’ve decided to conserve usury.
But it’s more likely that the GOP is just throwing the midterm elections.
Both factions of the regime exist only to advance the economic elite’s interests.
At this point, the best outcome in November is the GOP losing seats and Democrats getting full control of both houses so the uniparty drops the mask.
Happy, hopeful and practical
