President Biden said on Friday that 74,000 more borrowers would have their student loans forgiven for an additional $5 billion. After the Supreme Court invalidated his more expansive debt forgiveness plan last year, this is the most recent round of student debt cancellations. John Yang learns more about Biden’s efforts by speaking with Danielle Douglas-Gabriel, a Washington Post reporter who focuses on the economics of higher education.
Forgiveness may drive ‘votes or disengagement’
During the 2020 presidential campaign, Biden promised voters that hed forgive a large amount of student debt if he made it to the White House. That vow likely played a role in the unprecedented turnout of college students in the election, experts say. Young voters also proved crucial to Bidens success in several key states, including Arizona, Michigan and Pennsylvania.
In the end, the Supreme Court decided that the president’s $400 billion plan to cancel loans went beyond the executive branch’s authority, preventing him from carrying out his campaign pledge made during the summer. The Biden administration announced to some that it had “fully approved” their relief after accepting applications for loan relief up to $20,000 per borrower.
At the very least, that has likely left many young voters feeling frustrated with the political process, said Adam Gismondi, director of the National Study of Learning, Voting, and Engagement at Tufts University, the largest survey of college student voting in the U.S.
Gismondi stated, “It appeared to be simple and doable, but the political realities often end up complicating proposed policy solutions.” In November, he warned, it’s still unclear where young voters will stand and whether student loan forgiveness ultimately “drives votes or disengagement.”
Undoubtedly, those who favor the debt cancellation will probably not find Biden’s opponent to have a more enticing position. Republicans largely oppose debt jubilees.
During a campaign event last summer, former President Donald Trump stated that Biden’s attempt to help people pay off their debts “would have been very unfair to the millions and millions of people who paid their debt through hard work and diligence.” Trump also sought to abolish the well-liked Public Service Loan Forgiveness program, which forgives government and some nonprofit employees’ debt after ten years in office.
Are current forgiveness efforts enough for voters?
Nevertheless, Biden needs to take further action, according to Astra Taylor, co-founder of the Debt Collective, a union for debtors.
“More than 40 million individuals received cancellation promises, far exceeding the three 7 million people who have experienced some relief,” Taylor stated. “If Biden hopes to win back the confidence of voters, that ratio must drastically alter.” “.
But Amanda Taylor, a blogger in St. Louis, doesnt fault the president. (Taylor is not related to Astra Taylor.)
Rather, she places the blame on the Republican-led states that filed the lawsuit opposing Biden’s comprehensive student loan forgiveness plan, which the justices finally agreed to support.
Taylor stated, “I think Biden is doing everything in his power to keep his word.” “He is so much so that some people think he is disobeying the orders of the Supreme Courts.” (Taylor, now 47, graduated with student loan debt of about $20,000, but she has since paid it off. ).
Pasadena, California-based computer scientist Sam Berndt disagreed that Biden is doing everything he can and said the president still has legal authority that he hasn’t used.
Berndt doesn’t know who she will vote for in November and owes nearly $40,000 in student loan debt.
Meanwhile, he finds it irritating that the president blames Republicans and the Supreme Court for the student loan crisis instead of taking more action.
“President Biden is leading the 43 million borrowers of student loans,” stated Berndt.
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FAQ
Did the Supreme Court rule on student loan forgiveness?
In June, the conservative majority on the Supreme Court decided that President Joe Biden lacked the power to erase millions of Americans’ student loan debt.
What are the new rules for student loan forgiveness for 2023?
In the spring of 2023, borrowers who have made payments for IDR forgiveness for 20 or 25 years (240 or 300 months) may be eligible to have their loans forgiven. As soon as borrowers complete the necessary number of months for forgiveness, ED will continue to discharge loans. In 2024, all other borrowers will receive updates to their loan accounts.
How long before federal loans are forgiven?
Income-Based Repayment (IBR)%E2%80%94 Depending on when you first took out the loans (before, on, or after July 2014), payments are typically made out of the borrower’s discretionary income in 2010 or 2015, but never more than the 2010-year Standard Repayment Plan amount. After 20 or 25 years, the remaining loan balance is forgiven.
Should I pay off my student loans or wait for forgiveness?
It might be prudent to simply continue making your regular student loan payments and maybe wait to see if this new program can eventually result in some of your balances being forgiven. This is a great excuse to prioritize other investments or payments that are more important than paying off your student loans quickly.
Read More :
https://www.cnbc.com/2024/01/24/despite-supreme-court-ruling-biden-has-forgiven-student-debt-for-millions.html
https://www.pbs.org/newshour/show/after-supreme-court-ruling-biden-cancels-student-loan-debt-for-millions-of-borrowers