Biden administration canceling $6 billion in student loan debt for 200,000 borrowers – Fox Business
The Biden administration reached a deal this week to cancel $6 billion in federal student loan debt for about 200,000 borrowers who attended mostly for-profit colleges.
The Project on Predatory Student Lending celebrated the “momentous proposed settlement” on Thursday. A hearing for the judge to give the final sign-off is scheduled for July 28.
The Biden administration has canceled billions of dollars in federal student loan debt for borrowers who were defrauded by their colleges, and has also expanded eligibility for the Public Service Loan Forgiveness program.
The Department of Education reached a deal with the plaintiffs to wipe away the remaining federal student loan debt for 200,000 affected borrowers. Another 64,000 borrowers may also be eligible for debt relief.
President Joe Biden said he was considering some broad student loan forgiveness, though a smaller amount, and may set an income threshold to exclude high-earning borrowers.
A 2018 macroeconomic analysis of student debt cancellation estimated that it could boost real GDP by an average of $103bn to $130bn a year or $1.03tn to $1.3tn over 10 years.
Student debt cancellation is not a solution to the student debt crisis, but it does provide a clean slate for millions of Americans to move forward with their lives.
While broad student loan debt cancellation could deliver financial relief to millions of Americans, it would do nothing to lower college costs.
For more information on this story, consider the following news outlets listed below.
- Biden administration canceling $6 billion in student loan debt for 200,000 borrowers Fox Business
- Education Department agrees to cancel $6 billion in debt for some 200,000 student loan borrowers CNBC
- Education Department agrees to cancel $6B in loans, part of settlement agreement The Hill
- Conservatives claim canceling US student debt will be expensive. They’re wrong The Guardian
- Biden administration agrees to cancel another $6 billion in student loan debt for defrauded borrowers CNN