Biden forgives another $4.5B in student debt

The Biden administration is forgiving $4.5 billion in student loan debt for over 60,000 public service workers as part of the White House's Public Service Loan Forgiveness program. This will benefit teachers, nurses, firefighters, lawyers, and other public service professionals working at various states levels or at nonprofit organizations. "One of the impacts that student loans have is that it makes it more difficult for people to go into public service because they take out the same amount of loans, but they have to accept a lower salary," US Department of Education Under Secretary James Kvaal tells Brad Smith on Wealth. Kvaal acknowledges the challenges public service workers faced in receiving student loan relief in the past: "We've changed how we administer the program, and we want to make sure that student debt doesn't stand in a way when young people want to become a teacher or a nurse or a first responder, we have to make it possible for people to give back." In 2024 alone, President Biden forgave $3.2 billion in student debt for 43,900 public service workers in January and then an additional $1.2 billion for 35,000 workers in July. Debt relief under the PSLF program now totals over $70 billion since October 2021. "Some people say, 'It's not my problem, they chose to take out the loan,' but the reality is for these 40 million people, it's not just an economic weight for them, it's for their families," Kvaal says on the broader burden for all Americans with student debt. "It makes it harder to buy a home, to start a business, to go into a public service job. So it's really a problem for all of us and something that we all need to help fix as the student debt crisis." To watch more expert insights and analysis on the latest market action, check out more Wealth here.
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[DanH-uf]

He just increased the Federal debt by 4.5 billion.

[jessedcruz]

Why is my taxes going to people who already make more money than me 🤔

[AKAAAK]

Government $34T in guess they dont need the money 🤔. Glad I don't pay taxes anymore to our pathetic government 😊

[hh-xs]

How about be financially responsible, go to trade schools, go part time ect.

[anonymity]

Welp I'm about done paying my taxes

[midnightcaptain]

I don’t understand why the government feels the need to coddle people with student debt like they are children who can’t afford to pay their own bills. 13% of the population has student loan debt, they are a severe minority of financially irresponsible people who have found themselves in debt. I could never imagine getting on my knees and asking the government to pay my mortgage or my car note, I took on the debt, I’ll pay it.

[boldadvocacy]

This comes to $75, 000 per person on average - meaning it's going primarily to graduate students. Also, largely due the generosity of income driven plans and counting long periods of non payments as "payments" made, the average amount paid to receive this is less than 10 percent of what they originally borrowed. Was this congress' intent when they created this in 2007? The average loan at that time was $19, 000.

[JJyo]

The best thing they can do is halt the interest on the loans giving people the chance to pay down on the principal and eliminate the debt on their own. So far he has forgiven debt to those who signed up for college, couldn't finish and dropped out. Why they don't award people such as nurses, doctors, first responders, and other essential workers who have to go to 8 + years of school most times to provide services for the communities. Let's continue to award people who don't have the fortitude to finish what they started. Yeah, that makes sense.

[SRunni_]

I stand by this 100%, but not Biden's relaxed immigration policy

[soloman]

Bold plan. Let's see if it works 😉