With the latest action, the administration said it has canceled $167 billion in student debt for nearly 5 million Americans through several programs.

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.

  • Zaktor@sopuli.xyzEnglish
    2·
    4 months ago

    I don’t think the US university system is going to rework their fees because 160,000 people got public-service or low-income related forgiveness. It’s not even giving money directly to schools or financial institutions. The worst case is people who plan to either be poor or do public service may be less cost conscious when applying to schools, but the PSLF and income-based payment programs already existed and more importantly 18 year olds are just completely clueless about what taking out a $100,000 loan means. People fetishize economics like it’s a perfect mathematical system where every dollar spent will yield results in some other part of the system while just outright ignoring all the complete irrationality that exists in consumer decisions.

    • jj4211@lemmy.world
      2·
      4 months ago

      I think an individual jolt of this magnitude will not necessarily move the needle, but I’ve heard commentary about this just being a regular presidential thing to do going forward, which would be a pretty inadequate and unpredictable way (each time binging on happenstance of election, assuming that at least one of them even wants to do the “tradition”). Might be unfair for me to think overmuch on those suggestions, but they always stick in my head in these conversations. Still find it odd that the executive branch should be able to do this sort of thing unilaterally.

      • Zaktor@sopuli.xyzEnglish
        1·
        4 months ago

        These were all either existing programs or a new program that forgives loans that already weren’t being repaid (via existing IBR rules). This is “unpredictable” only insofar as the previous president refused to let the programs work.

        Still find it odd that the executive branch should be able to do this sort of thing unilaterally.

        He isn’t. He does have that ability (because Congress specifically gave it to the Executive in the Higher Education Act), but these are existing programs directed by Congress. The new group is just Biden automatically enrolling people who qualify in the old program.

        Worry about loan forgiveness to businesses and rich people rather than to poor people and public servants. There’s corn and fuel subsidies costing way more than this that have perverted the economy and actively destroy the environment. People get really worried about the economic effects of poor people getting stuff like that’s coming directly out of their wallet when there’s so much larger and more direct issues that just get assumed as normal.