SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
Activists call on President Joe Biden to not resume student loan payments in February and to cancel student debt on December 15, 2021 in Washington, D.C. (Photo: Paul Morigi/Getty Images for We, The 45 Million)
Biden Education Dept. Reverses on Student Debt Case After Reporting Stirred Outrage
"This is why we have to support journalism," one reporter said of The Daily Poster's work exposing the administration's attempt to "overturn a key legal victory for borrowers."
Feb 04, 2022
In a boon for both student borrowers and investigative reporting, the U.S. Department of Education on Friday announced a reversal related to student loan court challenge just two days after The Daily Poster revealed the Biden administration was trying to "bolster a legal precedent against millions of debtors being crushed by bankruptcy laws."
A Department of Education (DOE) spokesperson confirmed in a statement that the administration will now withdraw a notice of appeal filed last month after a federal judge in Delaware ruled in favor of providing 35-year-old Ryan Wolfson, an epileptic man who struggled to find full-time employment, with nearly $100,000 in student loan relief.
"This January 28 notice of appeal will soon be withdrawn," the DOE said. "The Department of Education has indicated publicly that it is reviewing current bankruptcy policies, a process which remains ongoing. While the student loan payment pause remains in effect, any borrower in an adversary bankruptcy proceeding can request and receive a stay on their proceedings."
U.S. Under Secretary of Education James Kvaal also tweeted Friday: "We're working hard to deliver relief to student loan borrowers and have reached 675,000 so far. We will withdraw the appeal in the Wolfson bankruptcy case and review how we handle future claims."
The administration's shift comes after two days of outcry following The Daily Poster's Wednesday reporting and as President Joe Biden faces mounting pressure from borrowers and congressional Democrats not only to deliver on his campaign promises regarding student loan relief but to go even further for those burdened by debt.
Reporting on the administration's attempt to "overturn a key legal victory for borrowers," journalists Julia Rock, Andrew Perez, and Walker Bragman noted that Biden "infamously helped his finance industry donors sculpt" U.S. bankruptcy laws during his decades representing Delaware in the Senate.
The trio of reporters explained that if the Biden administration followed through with an appeal in the case, it "would not only be aiming to keep this man overwhelmed with debt, but also moving to solidify a legal interpretation that could preclude even the most beleaguered student debtors from getting relief through bankruptcy courts."
The story was quickly picked up by other media outlets including Above the Law and Insider.
Dan Zibel, the vice president and chief counsel at the advocacy group Student Defense, criticized the administration's initial position, telling Insider that "easing the burden on student loan borrowers in bankruptcy has support across the political spectrum."
"In this case, the bankruptcy court's decision is well-reasoned," Zibel said. "It also joins a growing chorus of decisions noting how the discharge standards for student borrowers have been wrongly applied. The Department of Education should have welcomed this decision."
After the DOE confirmed that it changed course Friday, readers of The Daily Poster highlighted the importance of such reporting.
"This is why we have to support journalism," tweeted The New York Times' Peter S. Goodman.
"Real reporting matters," said Krystal Ball, co-host of the podcast and YouTube show Breaking Points. "This is exactly why I subscribe to The Daily Poster."
In an email to subscribers this week, The Daily Poster's founder and editor in chief, David Sirota--an award-winning journalist and former speechwriter for Sen. Bernie Sanders (I-Vt.)--announced the project is expanding and will soon rebrand as The Lever (LeverNews.com).
"When we started out, we really were daily posters, but we now do much more than that," he wrote. "We have live events, exclusive features, and a Citizens' Guide, and we are planning to relaunch a regular podcast in the coming weeks. All of this work is designed to hold the powerful accountable--which is why we believe The Lever is a much more accurate moniker for our work."
"We hold accountable the people moving the levers of power," Sirota added. "We believe fearless journalism can create leverage that forces politicians to fulfill their promises."
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, It’s been nearly 30 years since I co-founded Common Dreams with my late wife, Lina Newhouser. We had the radical notion that journalism should serve the public good, not corporate profits. It was clear to us from the outset what it would take to build such a project. No paid advertisements. No corporate sponsors. No millionaire publisher telling us what to think or do. Many people said we wouldn't last a year, but we proved those doubters wrong. Together with a tremendous team of journalists and dedicated staff, we built an independent media outlet free from the constraints of profits and corporate control. Our mission has always been simple: To inform. To inspire. To ignite change for the common good. Building Common Dreams was not easy. Our survival was never guaranteed. When you take on the most powerful forces—Wall Street greed, fossil fuel industry destruction, Big Tech lobbyists, and uber-rich oligarchs who have spent billions upon billions rigging the economy and democracy in their favor—the only bulwark you have is supporters who believe in your work. But here’s the urgent message from me today. It's never been this bad out there. And it's never been this hard to keep us going. At the very moment Common Dreams is most needed, the threats we face are intensifying. We need your support now more than ever. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. When everyone does the little they can afford, we are strong. But if that support retreats or dries up, so do we. Will you donate now to make sure Common Dreams not only survives but thrives? —Craig Brown, Co-founder |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
In a boon for both student borrowers and investigative reporting, the U.S. Department of Education on Friday announced a reversal related to student loan court challenge just two days after The Daily Poster revealed the Biden administration was trying to "bolster a legal precedent against millions of debtors being crushed by bankruptcy laws."
A Department of Education (DOE) spokesperson confirmed in a statement that the administration will now withdraw a notice of appeal filed last month after a federal judge in Delaware ruled in favor of providing 35-year-old Ryan Wolfson, an epileptic man who struggled to find full-time employment, with nearly $100,000 in student loan relief.
"This January 28 notice of appeal will soon be withdrawn," the DOE said. "The Department of Education has indicated publicly that it is reviewing current bankruptcy policies, a process which remains ongoing. While the student loan payment pause remains in effect, any borrower in an adversary bankruptcy proceeding can request and receive a stay on their proceedings."
U.S. Under Secretary of Education James Kvaal also tweeted Friday: "We're working hard to deliver relief to student loan borrowers and have reached 675,000 so far. We will withdraw the appeal in the Wolfson bankruptcy case and review how we handle future claims."
The administration's shift comes after two days of outcry following The Daily Poster's Wednesday reporting and as President Joe Biden faces mounting pressure from borrowers and congressional Democrats not only to deliver on his campaign promises regarding student loan relief but to go even further for those burdened by debt.
Reporting on the administration's attempt to "overturn a key legal victory for borrowers," journalists Julia Rock, Andrew Perez, and Walker Bragman noted that Biden "infamously helped his finance industry donors sculpt" U.S. bankruptcy laws during his decades representing Delaware in the Senate.
The trio of reporters explained that if the Biden administration followed through with an appeal in the case, it "would not only be aiming to keep this man overwhelmed with debt, but also moving to solidify a legal interpretation that could preclude even the most beleaguered student debtors from getting relief through bankruptcy courts."
The story was quickly picked up by other media outlets including Above the Law and Insider.
Dan Zibel, the vice president and chief counsel at the advocacy group Student Defense, criticized the administration's initial position, telling Insider that "easing the burden on student loan borrowers in bankruptcy has support across the political spectrum."
"In this case, the bankruptcy court's decision is well-reasoned," Zibel said. "It also joins a growing chorus of decisions noting how the discharge standards for student borrowers have been wrongly applied. The Department of Education should have welcomed this decision."
After the DOE confirmed that it changed course Friday, readers of The Daily Poster highlighted the importance of such reporting.
"This is why we have to support journalism," tweeted The New York Times' Peter S. Goodman.
"Real reporting matters," said Krystal Ball, co-host of the podcast and YouTube show Breaking Points. "This is exactly why I subscribe to The Daily Poster."
In an email to subscribers this week, The Daily Poster's founder and editor in chief, David Sirota--an award-winning journalist and former speechwriter for Sen. Bernie Sanders (I-Vt.)--announced the project is expanding and will soon rebrand as The Lever (LeverNews.com).
"When we started out, we really were daily posters, but we now do much more than that," he wrote. "We have live events, exclusive features, and a Citizens' Guide, and we are planning to relaunch a regular podcast in the coming weeks. All of this work is designed to hold the powerful accountable--which is why we believe The Lever is a much more accurate moniker for our work."
"We hold accountable the people moving the levers of power," Sirota added. "We believe fearless journalism can create leverage that forces politicians to fulfill their promises."
From Your Site Articles
In a boon for both student borrowers and investigative reporting, the U.S. Department of Education on Friday announced a reversal related to student loan court challenge just two days after The Daily Poster revealed the Biden administration was trying to "bolster a legal precedent against millions of debtors being crushed by bankruptcy laws."
A Department of Education (DOE) spokesperson confirmed in a statement that the administration will now withdraw a notice of appeal filed last month after a federal judge in Delaware ruled in favor of providing 35-year-old Ryan Wolfson, an epileptic man who struggled to find full-time employment, with nearly $100,000 in student loan relief.
"This January 28 notice of appeal will soon be withdrawn," the DOE said. "The Department of Education has indicated publicly that it is reviewing current bankruptcy policies, a process which remains ongoing. While the student loan payment pause remains in effect, any borrower in an adversary bankruptcy proceeding can request and receive a stay on their proceedings."
U.S. Under Secretary of Education James Kvaal also tweeted Friday: "We're working hard to deliver relief to student loan borrowers and have reached 675,000 so far. We will withdraw the appeal in the Wolfson bankruptcy case and review how we handle future claims."
The administration's shift comes after two days of outcry following The Daily Poster's Wednesday reporting and as President Joe Biden faces mounting pressure from borrowers and congressional Democrats not only to deliver on his campaign promises regarding student loan relief but to go even further for those burdened by debt.
Reporting on the administration's attempt to "overturn a key legal victory for borrowers," journalists Julia Rock, Andrew Perez, and Walker Bragman noted that Biden "infamously helped his finance industry donors sculpt" U.S. bankruptcy laws during his decades representing Delaware in the Senate.
The trio of reporters explained that if the Biden administration followed through with an appeal in the case, it "would not only be aiming to keep this man overwhelmed with debt, but also moving to solidify a legal interpretation that could preclude even the most beleaguered student debtors from getting relief through bankruptcy courts."
The story was quickly picked up by other media outlets including Above the Law and Insider.
Dan Zibel, the vice president and chief counsel at the advocacy group Student Defense, criticized the administration's initial position, telling Insider that "easing the burden on student loan borrowers in bankruptcy has support across the political spectrum."
"In this case, the bankruptcy court's decision is well-reasoned," Zibel said. "It also joins a growing chorus of decisions noting how the discharge standards for student borrowers have been wrongly applied. The Department of Education should have welcomed this decision."
After the DOE confirmed that it changed course Friday, readers of The Daily Poster highlighted the importance of such reporting.
"This is why we have to support journalism," tweeted The New York Times' Peter S. Goodman.
"Real reporting matters," said Krystal Ball, co-host of the podcast and YouTube show Breaking Points. "This is exactly why I subscribe to The Daily Poster."
In an email to subscribers this week, The Daily Poster's founder and editor in chief, David Sirota--an award-winning journalist and former speechwriter for Sen. Bernie Sanders (I-Vt.)--announced the project is expanding and will soon rebrand as The Lever (LeverNews.com).
"When we started out, we really were daily posters, but we now do much more than that," he wrote. "We have live events, exclusive features, and a Citizens' Guide, and we are planning to relaunch a regular podcast in the coming weeks. All of this work is designed to hold the powerful accountable--which is why we believe The Lever is a much more accurate moniker for our work."
"We hold accountable the people moving the levers of power," Sirota added. "We believe fearless journalism can create leverage that forces politicians to fulfill their promises."
From Your Site Articles
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.