Biden Expands Student Loan Forgiveness

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    The Facts

    • The Dept. of Education (DOE) has announced changes to two student loan programs in an effort to fulfill more of Biden's promise to forgive a large amount of federal student loan debt.

    • The DOE is making changes to the income-driven repayment (IDR) plan, which adjusts borrowers' payments based on their incomes. This will forgive debts for an estimated 40K people and provide some credit toward debts for another 3.6M borrowers.

    The Spin

    Left narrative

    Any student loan forgiveness is a move in the right direction, but there's still much more to be done considering the US' $1.75T in overall student debt. These are good enhancements for targeted groups, and now it's time to focus on the major structural issues that underpin this crisis.

    Right narrative

    Biden's pause on student loan forgiveness and his continued rule changes will only serve to cripple the US economy. Forestalling debt payments adds fuel to the already high inflation rate and removes any incentive for people to re-enter the workforce. This will only further contribute to labor costs and higher prices across the country.

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    Political split



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