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Biden is considering cancelling $321 billion in federal student loans.
That's a lot more than the estimated reduction in federal debt projected as a result of the recently signed Inflation Reduction Act. And no one can figure out if the cancellation of that debt is inflationary or not.
Keep in mind these are college students getting a higher education so they can become responsible adults.
Full disclosure: I am biased because a few years ago I paid off a $64,000 student loan debt for a doctoral program. And it hurt.
How do people worried about our financial future feel about all of that?
Aug. 31 is an important date for millions of Americans with federal student loans — it’s not just the day the pause on payments is set to expire, but also the deadline by which President Joe Biden will decide on broader federal student loan forgiveness.
CNBC has reported that White House officials are zeroing in on canceling $10,000 for all borrowers who earn less than $150,000 per year, but the administration has yet to confirm such plans.
More than 40 million Americans carry student loan debt. A wide-scale student loan cancellation of $10,000 per borrower would forgive a total of $321 billion of federal student loans and eliminate the entire balance for about 11.8 million borrowers, according to the Federal Reserve. The average borrower would receive $8,478 in student loan forgiveness.
That's a lot more than the estimated reduction in federal debt projected as a result of the recently signed Inflation Reduction Act. And no one can figure out if the cancellation of that debt is inflationary or not.
Keep in mind these are college students getting a higher education so they can become responsible adults.
Full disclosure: I am biased because a few years ago I paid off a $64,000 student loan debt for a doctoral program. And it hurt.
How do people worried about our financial future feel about all of that?
Student loan forgiveness decision will come ‘before Aug. 31,’ Biden administration confirms: What you need to know
Published Thu, Aug 11 202212:42 PM EDTUpdated 3 Hours AgoAug. 31 is an important date for millions of Americans with federal student loans — it’s not just the day the pause on payments is set to expire, but also the deadline by which President Joe Biden will decide on broader federal student loan forgiveness.
CNBC has reported that White House officials are zeroing in on canceling $10,000 for all borrowers who earn less than $150,000 per year, but the administration has yet to confirm such plans.
More than 40 million Americans carry student loan debt. A wide-scale student loan cancellation of $10,000 per borrower would forgive a total of $321 billion of federal student loans and eliminate the entire balance for about 11.8 million borrowers, according to the Federal Reserve. The average borrower would receive $8,478 in student loan forgiveness.
Student loan forgiveness decision will come 'before Aug. 31,' Biden administration confirms: What you need to know
White House officials are zeroing in on canceling $10,000 for all borrowers who earn less than $150,000 per year, CNBC reported.
www.cnbc.com