The Education Department announced the latest round of cancellation on Wednesday, saying it will erase $7.7 billion in federal student loans.
The Biden administration is canceling student loans for another 160,000 borrowers through a combination of existing programs.
The Education Department announced the latest round of cancellation on Wednesday, saying it will erase $7.7 billion in federal student loans. With the latest action, the administration said it has canceled $167 billion in student debt for nearly 5 million Americans through several programs.
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The latest relief will go to borrowers in three categories who hit certain milestones that make them eligible for cancellation. It will go to 54,000 borrowers who are enrolled in Biden’s new income-driven repayment plan, along with 39,000 enrolled in earlier income-driven plans, and about 67,000 who are eligible through the Public Service Loan Forgiveness program.
Without some sort of long term strategy, it may not be.
I've always said this would be good if also paired with some moves to improve things longer term, because random infusions of lots of free money without any checks on the university side has already worked to make the education more outrageously expensive. Continuing the strategy without any sort of price management will make things work.
Same could be said of healthcare, if as much money as they ask for is provided to the pharmas and hospitals, they will ask for more and more. Relief must be paired with some sort of plan to mitigate that.
You can treat symptoms and then address longer term problems when able. It's not like it would be better for these people just to keep paying because the current divided Congress won't address the core problem.
A few Australian universities attend college fairs in the USA, because even after you include the price of the flights, accommodation, and the uni itself, studying in Australia can still end up cheaper than the USA. Americans seem to love the idea of going to Australia, too.
I think community service in lieu of debt payment is a phenomenal idea as long as its fairly generous in waiving debt such that part time community service should be able to waive medical school debt.
I honestly care about high income inequality and campaign finance reform. Can we talk about those instead of what you care about?
No, this is actually a really effective way of communicating with other people and convincing them what I have to say is worth listening to. This absolutely does not alienate people or make me come off as an insensitive bot that doesn't know hot treat people like humans before I unload my personal interests on them
It seems like government investment in education is one of the best possible ways to allocate funds, even if not every person is directly impacted by being offered more schooing or degrees.
Think about it. More educated people around you is always better than fewer educated people.
Unfortunately our politicians view education as a zero sum game. Educated people generally have a left bias, which gives detractors incentive to cut funding and shoot down improvement initiatives.
I think it sounds better if this were just about how Biden's plan is rolling out eligibility for 54,000 borrowers. Though it is a payment plan that results in forgiveness like the PSLF.
The thing about the PSLF is that it was supposed to erase debt for public service employees after 10 years of aervice and no missed payments. So when Bush signed it in 2007, people who came eligible for forgiveness under Trump starting in 2017 were denied over absolutely insane technicalities.
So he gets credit for those 67,000 and 39,000 borrowers only in that they were essentially denied forgiveness they already qualified for up until now. Honestly I think focusing on the new stuff and not a Bush era program hits better.
I can understand the perspective, but if the Trump administration deliberately interfered with the PSLF, then it's a fair point in the obvious goal (to contrast his approach versus Trump's). Of course, conveniently they waited for an election year, when they could have done this in 2021...
Problem then was covid: payments were paused so people who were 9 years and 10 months into paying under the program were left in an awkward limbo.
So now that covid emergency is "over" those kinds of cases are finally being reviewed over the period of time payments were paused.
My spouse had the clock on "10 years" reset because of a missed payment in 2015. Would have had them discharged in 2022, but now we are on track for 2025, unless the covid pause will delay how those 10 years are tracked to 2027 or later.
Great bandaid. Now stop all federal student loans otherwise this problem is just going to continue. The idea of the government cyclically giving out loans and then cancelling them is the stupidest shit I keep reading as a valid solution.
Some of these debts are from PSLF program which is a Bush era program. Trump's administration just denied or delayed qualified folks their forgiveness, and Biden is honoring mostly those who met the means testing like never missing a payment in 10 years.
7.7 billion divided by 160,000 is average ~480,000 of loan money per person. So they bailed out a large chunk of rich kids going to expensive private schools. Cool.
If they were interest free loans, yeah. Since they have interest those loans may amount to only $100,000 which is about what state schools cost at this point
The average annual income for an individual in the United States is around $76,770 so why are Americans always acting like they're done up so rough? Every American is making over 70k!
The problem with this debt forgiveness by a thousand cuts is spending hours researching it then finding out you arbitrarily don't qualify because some highly technical reason.
This technocrated BS isn't helping any but the lucky few that end up qualifying.
The problem with this debt forgiveness by a thousand cuts is spending hours researching it then finding out you arbitrarily don’t qualify because some highly technical reason.
Are you saying because this doesn't help everybody then it shouldn't be allowed to help anybody?
Are you defending a politician's fix to a broken system with dozens of highly specific and hard to understand reforms?
If Biden had the choice between one broad fix that was easily communicated vs dozens of micro reforms; I'd prefer the broad reform even if I didn't personally qualify. Democrats are our only hope and if they stop tripping over their own feet it will be better for everyone.
Congress empowered the president to forgive debt. The courts ignored standing rules to even take that case and SCOTUS has no power to overrule both congress and the president.
President's have ignored SCOTUS before but Biden doesn't even have to do that. He can forgive debt like he's doing now but do it broadly and instantaneously.
If SCOTUS later rules against that broad forgiveness, there's nothing administratively they can do. No politician D or R would reinstate $.5 trillion in voter debt just to appease the unelected SCOTUS. You can't put that genie back in the bottle.
This technocrated BS isn’t helping any but the lucky few that end up qualifying.
It helped me via the TEPSLF and we got a much more reasonable monthly payment rate for my spouse's loans. Biden and the members of Congress who moved the TEPSLF program through the legislation is awesome and we should be forgiving these loans en banc so we free up generations of fellow citizens to actually live and grow.
So just stop paying 🤷 I have over 80k and I haven't paid anything in over a decade. I just don't care. They can cancel it, or not, makes no difference to me, I'll never pay anything.
In 1978 he co-wrote a bill that introduced the first limit on how students could use bankruptcy law to reduce their debt burden.
In 1990 he helped author the Crime Control Act, which is famous for stepping up sentencing guidelines, included an entirely unrelated clause that further lengthened the time students had to wait before they could declare bankruptcy on their student loans.
In 1998 they introduced an “undue hardship” clause to federal student loan bankruptcy proceedings; making it even more difficult to declare bankruptcy on student debt.
To top all of this off, he supported adding the undue hardship clause to private student loans in 2005.
In 1978 he co-wrote a bill that introduced the first limit on how students could use bankruptcy law to reduce their debt burden.
In 1990 he helped author the Crime Control Act, which is famous for stepping up sentencing guidelines, included an entirely unrelated clause that further lengthened the time students had to wait before they could declare bankruptcy on their student loans.
In 1998 they introduced an “undue hardship” clause to federal student loan bankruptcy proceedings; making it even more difficult to declare bankruptcy on student debt.
To top all of this off, he supported adding the undue hardship clause to private student loans in 2005.
In 1978 he co-wrote a bill that introduced the first limit on how students could use bankruptcy law to reduce their debt burden.
In 1990 he helped author the Crime Control Act, which is famous for stepping up sentencing guidelines, included an entirely unrelated clause that further lengthened the time students had to wait before they could declare bankruptcy on their student loans.
In 1998 they introduced an “undue hardship” clause to federal student loan bankruptcy proceedings; making it even more difficult to declare bankruptcy on student debt.
To top all of this off, he supported adding the undue hardship clause to private student loans in 2005.
Awesome, so everyone who couldn't afford to go to college now has to pay for the people who went to college making more money than the person paying off their debt. Yeah, that seems legit.
Did you hear how much was spent on the Iraq war? Maybe the 2008 debt crises? Maybe the PPP loan forgiveness? Surely you’ve heard of one that dwarfed those in comparison. Obvious troll is obvious
Yeah, so what that there's been more money spent on other things. That has nothing to do with this. Why does that make it okay to take money from people who couldn't afford to go to college and give it to people that went to college that have a higher income than the person they took it from?