President Biden Forgives $1.2 Billion in Student Loans in Latest Relief
https://www.bloomberg.com/news/articles/2024-07-18/biden-forgives-1-2-billion-in-student-loans-in-latest-relief
President Biden Forgives $1.2 Billion in Student Loans in Latest Relief
https://www.bloomberg.com/news/articles/2024-07-18/biden-forgives-1-2-billion-in-student-loans-in-latest-relief
23 comments
*From Bloomberg News reporter Akayla Gardner:*
President Joe Biden canceled an additional $1.2 billion in student debt for public servants on Thursday, the latest effort to provide loan relief and deliver on one of his signature initiatives in the midst of a reelection campaign.
The assistance will affect 35,000 public service workers enrolled in the government’s loan forgiveness program, including nurses, firefighters and teachers. The individuals received waivers or were affected by regulatory changes that gave them more credit toward the system’s decade-long payment requirement.
“They will now have more breathing room to support themselves and their families,” Biden said in a statement.
As an undecided voter this doesn’t seem quite fair to me
Honestly the only thing I would agree with on forgiveness is principle plus a flat 15% interest on the original loan amount. No compounding interest.
Pays back what you borrowed, adds some additional money as a thank you for the loan.
Gets rid of ballooning amounts and also pays the tax payers back, everyone wins.
Imagine saying he shouldn’t do this because it takes care of people and it’s unfair 🤣
Giving thirty five thousand government workers student loan relief. That’s practically a gift placed on a silver platter for Trump
Mine are still there, damn it
I got PSLF last year
Amount I took out in loans: $28,000
Amount I had paid back: $27,000
Amount I still owed when I got forgiveness: $27,000.
This isn’t about people paying what they owe. It’s about removing an unnecessary barrier to economic stability.
Why is there interest on student loans to begin with?
Erase a majority and hey may just have a chance. Their trying to take you out Biden. Hit em where it hurts on the way out..
Took out 89k for undergrad and grad, forgiven through PSLF and it had ballooned up to 119k and I had been making monthly payments. If PPP loans can be forgiven for the littlest things then everyone on PSL.F should be as well.
Hope i am one of them
He’s pulling out all the stops now, which is a sound strategy, considering many in his own party want him gone.
if he can carve out support among young, progressive people, he stands a chance of survival.
(not for or against replacing biden to be clear)
So unlikeable! Jeez Joe do something people can get behind, like yelling and shouting
Obviously sarcasm
It’s decisions like this that make me think that these “calls” for Biden to retire are from people who think he’s too progressive. Rich donors must absolutely despise him as a candidate.
💸 FREE MONEY GIVEAWAY 💸
If that doesn’t buy a few votes, I don’t know what will
Legalize weed
Seems to be a lot of ignorant people here. This is the Public Service Loan Forgiveness program. It was signed into law by George Bush in 2007. From 2007 to 2020 around 7,000 people actually received forgiveness, because the program was mismanaged and broken from the start. Since Biden put an effort into fixing it since 2020, almost 950,000 have received forgiveness.
This is not some “scheme” giveaway socialist agenda handout like many of you want to believe. This is Biden fixing a Republican initiated program that has existed for 17 years.
And as someone who has never had student loans, but has taken out dozens of loans and had to pay them back in my life, it makes me happy. Good for Biden and his administration, and I hope those that get relief have new opportunities open to them.
How does one find out of the are included in this? My wife is a teacher, but I’m not sure how we will know if she’s getting any loans forgiven
*Tax payers* forgive 1.2 billion in student loans.
These actions do not address the root cause. I would argue they exacerbate it. It’s bad policy.
Borrowed about 30k. Paid back over 20k. Still owe almost 30k.
Bad idea.
### Consequences of Presidential Action on Student Loan Debt Relief in the U.S.
#### Introduction
The issue of student loan debt in the United States is a pressing concern, with many graduates burdened by significant financial obligations due to high tuition fees, particularly from expensive colleges. A presidential decision to clear this debt can have profound impacts on the economy, society, and individual behaviours. While there are several positive outcomes, it’s crucial to examine the potential negative consequences as well.
#### Negative Consequences
1. **Economic Burden on Taxpayers**:
– **Description**: Clearing student loan debt would require substantial government funding, potentially leading to increased taxes or national debt.
– **Impact**: This could strain public finances, reducing funds available for other essential services like healthcare, infrastructure, and education.
2. **Inflationary Pressures**:
– **Description**: Injecting a large amount of money back into the economy could lead to inflation.
– **Impact**: Increased spending power among those relieved from debt might drive up prices, diminishing the purchasing power of all consumers.
3. **Moral Hazard**:
– **Description**: Debt forgiveness might encourage irresponsible borrowing and financial behaviours.
– **Impact**: Future students might take on excessive loans, assuming they too will be bailed out, exacerbating the problem.
4. **Perceived Unfairness**:
– **Description**: Individuals who have already paid off their loans or chose less expensive education options might view the policy as unfair.
– **Impact**: This could create social and political division, undermining trust in governmental policies.
5. **Impact on College Tuition**:
– **Description**: Colleges might increase tuition fees, anticipating future debt forgiveness.
– **Impact**: This could lead to even higher educational costs, perpetuating the cycle of debt.
6. **Negative Impact on Credit Markets**:
– **Description**: Debt forgiveness might disrupt credit markets, affecting lenders and investors.
– **Impact**: Lenders could become more risk-averse, leading to stricter borrowing conditions for students and other consumers.
7. **Labour Market Distortions**:
– **Description**: Debt relief might reduce the incentive to enter high-paying fields to repay loans.
– **Impact**: This could lead to a shortage of professionals in critical sectors like healthcare, engineering, and technology.
8. **Perpetuation of Income Inequality**:
– **Description**: High-income individuals, who are more likely to have attended expensive colleges, might benefit more.
– **Impact**: This could widen the wealth gap, as lower-income individuals receive less relative benefit.
9. **Reduction in Military Enlistment**:
– **Description**: The military often attracts recruits by offering student loan repayment.
– **Impact**: Debt forgiveness could diminish this incentive, potentially impacting military recruitment.
10. **Opportunity Cost**:
– **Description**: Funds used for debt forgiveness could be allocated to other areas like healthcare, infrastructure, or early childhood education.
– **Impact**: Forgiving student loans means other potentially beneficial programs might be underfunded or delayed.
#### Conclusion
While clearing student loan debt could provide immediate relief to millions of Americans, it’s essential to consider the broader implications. The potential negative consequences span economic, social, and behavioural domains, highlighting the complexity of such a policy decision. Balancing these factors is crucial for crafting a fair and sustainable approach to addressing the student debt crisis.
JFC get this guy out of here! /s
How about some tax relief?