Households earning $300K+ stand to gain biggest benefit from Biden’s student loan forgiveness plan, but middle class borrowers will still get small relief

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by bolognatowel

16 comments

  2. Yeah, the whole student loan thing was always pretty classist. Higher education should be free to the consumer.

  3. ALL I HAVE TO SAY IS PPP LOANS. LOOK IT UP!!! CONGRESS ALL GOT IT AN THEY WERE FORGIVEN…! Wake up people you are being played!!!

  5. > While the New Plans, like the SAVE plan, contain provisions to relieve debt based on individual or household income, the New Plans will also relieve some longer-term student debt for about 750,000 households making over $312,000 in average household income. The main reason for this high average household income is that the SAVE plan already provides long-term debt relief to households with lower incomes.

    You are leaving out some important details.

  6. I don’t think any benefit should be expanded to high income households, per the New Plans. I’m guessing this Table includes both the 20 year and 25 year forgiveness estimate. Higher income households are probably more likely to have attended more expensive private schools, or accumulated debt for graduate degrees. Again, these people should not receive expanded benefits under the New Plans. Imagine forgiving debt for households with that type of income. Completely disgusting.

  7. Um… no. That’s not how anything works. This is more propaganda from right wingers that want to keep that money for the 1%.

    Someone making $300k can afford their student loans. Yes, they have *more* student loans. Because *most of them are medical doctors!*

    But there are many, many more in the $150-$200 range who see a *much* bigger impact to their actual lives.

    And in turn to *your lives* because *instead of that money getting hoovered up by the 1% they’re spending it in your community!*

  8. Debt forgiveness was stupid, but making is classist is laughable. If the practice was predatory, it was predatory for everyone. Politics is largely getting other people to pay for what you want.

  10. Guys, this is narrow minded thinking. Biden created the SAVE program so those with a limited income can apply, their payments will be based on their income, and forgiven after a certain period of time. Biden has expanded his efforts to forgive student loans. This should be no surprise to anyone as he promised to do that.

    It’s interesting that people are outraged when there is an effort to provide financial relief to Americans, but barely a peep from conservatives about things like the $500B corporate slush fund Trump created in 2020, and refused to name the benefactors, and the corporate tax cuts in 2017. We can argue semantics about whether that trickled down to the working class. But the hypocrisy is astounding.

  11. Debt forgiveness is laughing in the face of people being financially conservative.

    I worked 2 jobs during my undergrad degree to pay for my school. Great slap in the face to tell me I may have just gone and partied during those work hrs…

    Something that could make sense is stop charging interest, but dont just waive off the principal. Thats messed upto anyone who worked hard to work down their debt.

  12. Sorry, but this headline is very misleading compared to what that chart actually says. The provisions are sorted by borrower type, not income. And have we forgotten how averages work? One or two borrowers who are billionaires could skew the entire dataset, and without seeing the raw data it is impossible to determine how many of those borrowers even make $50k versus $300k.

    The average household income in the US as of 2022 is [$126,500](https://fred.stlouisfed.org/series/MAFAINUSA646N), if that doesn’t seem to reflect your reality, either, that’s probably because the median is only $74,580, for reference.

    All that specific provision can really tell us is that it is for people who have been repaying for 20 years, meaning they are older generations, and that there are roughly 750,000 that will benefit.

    This chart shows that the most people helped by far are those who are seeing a waiving of accrued and capitalized interest, which is 16 million borrowers, with an average household income below the previously stated $126,500, meaning that way more middle class borrowers are receiving some form of assistance by number.

    Unless we see more granular, or at least median, income data, all we can really gather from this table is that those who are seeing the greatest average debt relief are those that have been paying off the longest (20+ years), followed closely by very low income individuals facing hardship, while the most borrowers being helped aren’t receiving the greatest amount of debt relief, but are receiving targeted relief towards their capitalized interest.

  14. Means testing is a scam to make programs like this as shitty and useless as possible.

  15. Households that make the most money gain the biggest benefit on nearly every single action the government takes.

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