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Over 43M Americans with federal student debt
Sep 21, 2022 22:49:42   #
thebigp
 
More than 43 million Americans have federal student debt, with nearly a third owing less than $10,000 and more than half owing less than $20,000, according to the latest federal data. Pandemic-era payment freezes were set to end on Aug. 31. A recent analysis from the Committee for a Responsible Federal Budget (CRFB) found that the $10,000 forgiveness plan would undermine the Inflation Reduction Act by consuming nearly 10 years of deficit reduction and wipe out disinflationary benefit "[D]ebt cancellation would boost near-term inflation far more than the IRA will lower it," CRFB also wrote in its analysis. The "$10,000 of debt cancellation could add up to 15 basis points up front and create additional inflationary pressure over time."
Fox News Digital's Bradford Betz and Megan Henney — as well as the Associated Press and Elizabeth Economou — contributed to this report.
Maureen Mackey is managing editor of lifestyle for Fox News Digital
The national debt, according to the Treasury Department, currently sits at $30.7 trillion. Biden said his administration will forgive student loan debt up to $20,000 for borrowers who attended college on Pell Grants and $10,000 for borrowers who did not receive Pell Grants. He said the forgiveness "only applies to those earning less than $125,000." Biden also said that borrowers with undergraduate student loans are able to "cap repayment at 5% of your monthly income."
STUDENT LOAN DEAL COULD COST $900B AND FAVOR TOP EARNERS, ANALYSIS SHOWS: August 24, 2022 9:20am EDT
Student loan deal could cost $900B and favor top earners, analysis shows
Penn Wharton: Majority of student loan debt forgiven would boost top earners
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By Megan Henney FOXBusiness
Forgiving student loan debt could cost upward of $900 billion and disproportionately benefit wealthy Americans, according to a new analysis published on Tuesday.
The findings from the Penn Wharton Budget Model, a nonpartisan group at the University of Pennsylvania's Wharton School, come as President Biden announced that he will cancel $10,000 of federal student loan debt for certain borrowers earning less than $125,000, and $20,000 for Pell Grant recipients.
Penn Wharton estimated that a one-time forgiveness of $10,000 per borrower would cost about $300 billion if the policy is limited to individuals with incomes less than $125,000. The cost jumps to $330 billion if the program continues over the next decade and would cost $344 billion if the White House scrapped the income limits. Should Biden opt to wipe out $50,000 per borrower, it would cost the federal government roughly $980 billion, according to the analysis.
Canceling debt would also add to the nation's already ballooning national debt, which surged to a record-high $30 trillion last year. Between 69% and 73% of any debt forgiven would accrue to households that are in the top 60% of income distribution in the U.S.
LARRY SUMMERS WARNS STUDENT LOAN DEBT RELIEF COULD WORSEN INFLATION--
The White House has weighed for months whether to cancel some federal student loan debt. Biden campaigned on erasing at least $10,000 in student loan debt for most borrowers and has since floated income-based parameters that would cut off forgiveness for any household earning more than $125,000.
However, the matter has been complicated further by the soaring prices of everything from food to gasoline to rent, with fears that wiping out billions in loan debt could exacerbate the inflation crisis.
Critics, including former Treasury Secretary Larry Summers, have argued that putting more money back into borrowers' pockets could keep inflation painfully high in the coming months and years "I hope the Administration does not contribute to inflation macro economically by offering unreasonably generous student loan relief or micro economically by encouraging college tuition increases," Summers, a Harvard University professor, wrote in a series of tweets this week.
Biden also announced on Wednesday tha he intends to extend the federal student loan payment pause that was poised to expire at the end of August. The freeze — which also set the interest rate to 0% — began in March 2020 at the onset of the coronavirus pandemic. About 41 million Americans are benefiting from the federal government’s pause on student loan payments, which has been extended six times — twice by former President Trump and four times by Biden. At least $72 billion has been provided in relief on student loan interest alone.
Pandemic-era payment freezes were set to end on Aug. 31, but Biden on Wednesday also extended the payment pause "one final time through Dec. 31, 2022." The Department of Education on Wednesday said the application for loan cancellation will become available "no later than when the pause on federal student loan repayments terminates at the end of the year."
"Earning a college degree or certificate should give every person in America a leg up in securing a bright future. But for too many people, student loan debt has hindered their ability to achieve their dreams — including buying a home, starting a business, or providing for their family," Education Secretary Miguel Cardona said in a statement Wednesday. "Getting an education should set us free; not strap us down! That’s why, since Day One, the Biden-Harris administration has worked to fix broken federal student aid programs and deliver unprecedented relief to borrowers."
Cardona added that the Biden administration is "delivering targeted relief that will help ensure borrowers are not placed in a worse position financially because of the pandemic, and restore trust in a system that should be creating opportunity, not a debt trap." As for the income-driven repayment plan, the Education Department said the update will "substantially reduce future monthly payments for lower- and middle-income borrowers." The proposed rule would cut in half the amount borrowers have to pay each month on undergraduate loans — from 10% to 5%. The rule would also have borrowers with both undergraduate and graduate loans paying a weighted average rate. That proposed rule would also forgive loan balances after 10 years of payments, instead of the current 20 years under many income-driven repayment plans, for borrowers with original loan balances of $12,000 or less.
According to a Penn Wharton Budget Model, a one-time maximum debt forgiveness of $10,000 for borrowers who make less than $125,000 will cost around $300 billion for taxpayers.
The announcement comes as the U.S. is facing record-high inflation. But when asked if the plan would increase inflation, a senior administration official said the steps the Biden administration is taking will offset each other, noting there are "certain conditions and assumptions under which it could well be neutral or deflationary." The official said that the "combination" of an extension in the pause in loan payments and the "targeted debt relief" will "largely offset" inflation. "That's our view," the official said, adding that "if all borrowers claim the relief that they are entitled to, 43 million federal student loan borrowers will benefit, and of those, 20 million will have their debt completely canceled."
STUDENT LOAN HANDOUT: WALL STREET JOURNAL ROASTS BIDEN'S ‘INFLATION EXPANSION ACT’
Republicans are blasting the Biden administration's move, with Republican National Committee Chairwoman Ronna McDaniel calling it "Biden's bailout for the wealthy." "As hardworking Americans struggle with soaring costs and a recession, Biden is giving a handout to the rich," McDaniel said. "Biden's bailout unfairly punishes Americans who saved for college or made a different career choice, and voters see right through this short-sighted, poorly veiled vote-buy." And Senate Minority Leader Mitch McConnell slammed the move, saying Democrats have "found yet another way to make inflation even worse, reward far-left activists, and achieve nothing for millions of working American families who can barely tread water."
"President Biden’s student loan socialism is a slap in the face to every family who sacrificed to save for college, every graduate who paid their debt, and every American who chose a certain career path or volunteered to serve in our Armed Forces in order to avoid taking on debt," McConnell said. "This policy is astonishingly unfair." McConnell noted that the "median American with student loans already has a significantly higher income than the median American overall." "Experts who studied similar past proposals found that the overwhelming benefit of student loan socialism flows to higher-earning Americans," he said. "Democrats specifically wrote this policy to make sure that people earning six figures would benefit." McConnell added: "This is the one consistent thread that connects Democrats’ policies: Taking money and purchasing power away from working families and redistributing it to their favored friends."

Reply
Sep 21, 2022 23:15:13   #
Milosia2 Loc: Cleveland Ohio
 
thebigp wrote:
More than 43 million Americans have federal student debt, with nearly a third owing less than $10,000 and more than half owing less than $20,000, according to the latest federal data. Pandemic-era payment freezes were set to end on Aug. 31. A recent analysis from the Committee for a Responsible Federal Budget (CRFB) found that the $10,000 forgiveness plan would undermine the Inflation Reduction Act by consuming nearly 10 years of deficit reduction and wipe out disinflationary benefit "[D]ebt cancellation would boost near-term inflation far more than the IRA will lower it," CRFB also wrote in its analysis. The "$10,000 of debt cancellation could add up to 15 basis points up front and create additional inflationary pressure over time."
Fox News Digital's Bradford Betz and Megan Henney — as well as the Associated Press and Elizabeth Economou — contributed to this report.
Maureen Mackey is managing editor of lifestyle for Fox News Digital
The national debt, according to the Treasury Department, currently sits at $30.7 trillion. Biden said his administration will forgive student loan debt up to $20,000 for borrowers who attended college on Pell Grants and $10,000 for borrowers who did not receive Pell Grants. He said the forgiveness "only applies to those earning less than $125,000." Biden also said that borrowers with undergraduate student loans are able to "cap repayment at 5% of your monthly income."
STUDENT LOAN DEAL COULD COST $900B AND FAVOR TOP EARNERS, ANALYSIS SHOWS: August 24, 2022 9:20am EDT
Student loan deal could cost $900B and favor top earners, analysis shows
Penn Wharton: Majority of student loan debt forgiven would boost top earners
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• Twitter

• Comments

• Print

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By Megan Henney FOXBusiness
Forgiving student loan debt could cost upward of $900 billion and disproportionately benefit wealthy Americans, according to a new analysis published on Tuesday.
The findings from the Penn Wharton Budget Model, a nonpartisan group at the University of Pennsylvania's Wharton School, come as President Biden announced that he will cancel $10,000 of federal student loan debt for certain borrowers earning less than $125,000, and $20,000 for Pell Grant recipients.
Penn Wharton estimated that a one-time forgiveness of $10,000 per borrower would cost about $300 billion if the policy is limited to individuals with incomes less than $125,000. The cost jumps to $330 billion if the program continues over the next decade and would cost $344 billion if the White House scrapped the income limits. Should Biden opt to wipe out $50,000 per borrower, it would cost the federal government roughly $980 billion, according to the analysis.
Canceling debt would also add to the nation's already ballooning national debt, which surged to a record-high $30 trillion last year. Between 69% and 73% of any debt forgiven would accrue to households that are in the top 60% of income distribution in the U.S.
LARRY SUMMERS WARNS STUDENT LOAN DEBT RELIEF COULD WORSEN INFLATION--
The White House has weighed for months whether to cancel some federal student loan debt. Biden campaigned on erasing at least $10,000 in student loan debt for most borrowers and has since floated income-based parameters that would cut off forgiveness for any household earning more than $125,000.
However, the matter has been complicated further by the soaring prices of everything from food to gasoline to rent, with fears that wiping out billions in loan debt could exacerbate the inflation crisis.
Critics, including former Treasury Secretary Larry Summers, have argued that putting more money back into borrowers' pockets could keep inflation painfully high in the coming months and years "I hope the Administration does not contribute to inflation macro economically by offering unreasonably generous student loan relief or micro economically by encouraging college tuition increases," Summers, a Harvard University professor, wrote in a series of tweets this week.
Biden also announced on Wednesday tha he intends to extend the federal student loan payment pause that was poised to expire at the end of August. The freeze — which also set the interest rate to 0% — began in March 2020 at the onset of the coronavirus pandemic. About 41 million Americans are benefiting from the federal government’s pause on student loan payments, which has been extended six times — twice by former President Trump and four times by Biden. At least $72 billion has been provided in relief on student loan interest alone.
Pandemic-era payment freezes were set to end on Aug. 31, but Biden on Wednesday also extended the payment pause "one final time through Dec. 31, 2022." The Department of Education on Wednesday said the application for loan cancellation will become available "no later than when the pause on federal student loan repayments terminates at the end of the year."
"Earning a college degree or certificate should give every person in America a leg up in securing a bright future. But for too many people, student loan debt has hindered their ability to achieve their dreams — including buying a home, starting a business, or providing for their family," Education Secretary Miguel Cardona said in a statement Wednesday. "Getting an education should set us free; not strap us down! That’s why, since Day One, the Biden-Harris administration has worked to fix broken federal student aid programs and deliver unprecedented relief to borrowers."
Cardona added that the Biden administration is "delivering targeted relief that will help ensure borrowers are not placed in a worse position financially because of the pandemic, and restore trust in a system that should be creating opportunity, not a debt trap." As for the income-driven repayment plan, the Education Department said the update will "substantially reduce future monthly payments for lower- and middle-income borrowers." The proposed rule would cut in half the amount borrowers have to pay each month on undergraduate loans — from 10% to 5%. The rule would also have borrowers with both undergraduate and graduate loans paying a weighted average rate. That proposed rule would also forgive loan balances after 10 years of payments, instead of the current 20 years under many income-driven repayment plans, for borrowers with original loan balances of $12,000 or less.
According to a Penn Wharton Budget Model, a one-time maximum debt forgiveness of $10,000 for borrowers who make less than $125,000 will cost around $300 billion for taxpayers.
The announcement comes as the U.S. is facing record-high inflation. But when asked if the plan would increase inflation, a senior administration official said the steps the Biden administration is taking will offset each other, noting there are "certain conditions and assumptions under which it could well be neutral or deflationary." The official said that the "combination" of an extension in the pause in loan payments and the "targeted debt relief" will "largely offset" inflation. "That's our view," the official said, adding that "if all borrowers claim the relief that they are entitled to, 43 million federal student loan borrowers will benefit, and of those, 20 million will have their debt completely canceled."
STUDENT LOAN HANDOUT: WALL STREET JOURNAL ROASTS BIDEN'S ‘INFLATION EXPANSION ACT’
Republicans are blasting the Biden administration's move, with Republican National Committee Chairwoman Ronna McDaniel calling it "Biden's bailout for the wealthy." "As hardworking Americans struggle with soaring costs and a recession, Biden is giving a handout to the rich," McDaniel said. "Biden's bailout unfairly punishes Americans who saved for college or made a different career choice, and voters see right through this short-sighted, poorly veiled vote-buy." And Senate Minority Leader Mitch McConnell slammed the move, saying Democrats have "found yet another way to make inflation even worse, reward far-left activists, and achieve nothing for millions of working American families who can barely tread water."
"President Biden’s student loan socialism is a slap in the face to every family who sacrificed to save for college, every graduate who paid their debt, and every American who chose a certain career path or volunteered to serve in our Armed Forces in order to avoid taking on debt," McConnell said. "This policy is astonishingly unfair." McConnell noted that the "median American with student loans already has a significantly higher income than the median American overall." "Experts who studied similar past proposals found that the overwhelming benefit of student loan socialism flows to higher-earning Americans," he said. "Democrats specifically wrote this policy to make sure that people earning six figures would benefit." McConnell added: "This is the one consistent thread that connects Democrats’ policies: Taking money and purchasing power away from working families and redistributing it to their favored friends."
More than 43 million Americans have federal studen... (show quote)


Really ????
Giving indentured slaves a break would cause more inflation ?
It would also give us a stronger economy.
And the big question I have is
Who is this money owed to ????
Who is it that is vacuuming $3 trillion in debt from our economy.
What better could we do with this money, to curb inflation maybe.

And please tell me why you think living in a country that is totally privatized. And pay as you go would be a better place to live, for anyone.
Aside from one capitalist who owns everything.
At what point does the balance of sanity tip ???

Reply
Sep 22, 2022 01:51:49   #
CounterRevolutionary
 
thebigp wrote:
More than 43 million Americans have federal student debt, with nearly a third owing less than $10,000 and more than half owing less than $20,000, according to the latest federal data. Pandemic-era payment freezes were set to end on Aug. 31. A recent analysis from the Committee for a Responsible Federal Budget (CRFB) found that the $10,000 forgiveness plan would undermine the Inflation Reduction Act by consuming nearly 10 years of deficit reduction and wipe out disinflationary benefit "[D]ebt cancellation would boost near-term inflation far more than the IRA will lower it," CRFB also wrote in its analysis. The "$10,000 of debt cancellation could add up to 15 basis points up front and create additional inflationary pressure over time."
Fox News Digital's Bradford Betz and Megan Henney — as well as the Associated Press and Elizabeth Economou — contributed to this report.
Maureen Mackey is managing editor of lifestyle for Fox News Digital
The national debt, according to the Treasury Department, currently sits at $30.7 trillion. Biden said his administration will forgive student loan debt up to $20,000 for borrowers who attended college on Pell Grants and $10,000 for borrowers who did not receive Pell Grants. He said the forgiveness "only applies to those earning less than $125,000." Biden also said that borrowers with undergraduate student loans are able to "cap repayment at 5% of your monthly income."
STUDENT LOAN DEAL COULD COST $900B AND FAVOR TOP EARNERS, ANALYSIS SHOWS: August 24, 2022 9:20am EDT
Student loan deal could cost $900B and favor top earners, analysis shows
Penn Wharton: Majority of student loan debt forgiven would boost top earners
• Facebook

• Twitter

• Comments

• Print

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By Megan Henney FOXBusiness
Forgiving student loan debt could cost upward of $900 billion and disproportionately benefit wealthy Americans, according to a new analysis published on Tuesday.
The findings from the Penn Wharton Budget Model, a nonpartisan group at the University of Pennsylvania's Wharton School, come as President Biden announced that he will cancel $10,000 of federal student loan debt for certain borrowers earning less than $125,000, and $20,000 for Pell Grant recipients.
Penn Wharton estimated that a one-time forgiveness of $10,000 per borrower would cost about $300 billion if the policy is limited to individuals with incomes less than $125,000. The cost jumps to $330 billion if the program continues over the next decade and would cost $344 billion if the White House scrapped the income limits. Should Biden opt to wipe out $50,000 per borrower, it would cost the federal government roughly $980 billion, according to the analysis.
Canceling debt would also add to the nation's already ballooning national debt, which surged to a record-high $30 trillion last year. Between 69% and 73% of any debt forgiven would accrue to households that are in the top 60% of income distribution in the U.S.
LARRY SUMMERS WARNS STUDENT LOAN DEBT RELIEF COULD WORSEN INFLATION--
The White House has weighed for months whether to cancel some federal student loan debt. Biden campaigned on erasing at least $10,000 in student loan debt for most borrowers and has since floated income-based parameters that would cut off forgiveness for any household earning more than $125,000.
However, the matter has been complicated further by the soaring prices of everything from food to gasoline to rent, with fears that wiping out billions in loan debt could exacerbate the inflation crisis.
Critics, including former Treasury Secretary Larry Summers, have argued that putting more money back into borrowers' pockets could keep inflation painfully high in the coming months and years "I hope the Administration does not contribute to inflation macro economically by offering unreasonably generous student loan relief or micro economically by encouraging college tuition increases," Summers, a Harvard University professor, wrote in a series of tweets this week.
Biden also announced on Wednesday tha he intends to extend the federal student loan payment pause that was poised to expire at the end of August. The freeze — which also set the interest rate to 0% — began in March 2020 at the onset of the coronavirus pandemic. About 41 million Americans are benefiting from the federal government’s pause on student loan payments, which has been extended six times — twice by former President Trump and four times by Biden. At least $72 billion has been provided in relief on student loan interest alone.
Pandemic-era payment freezes were set to end on Aug. 31, but Biden on Wednesday also extended the payment pause "one final time through Dec. 31, 2022." The Department of Education on Wednesday said the application for loan cancellation will become available "no later than when the pause on federal student loan repayments terminates at the end of the year."
"Earning a college degree or certificate should give every person in America a leg up in securing a bright future. But for too many people, student loan debt has hindered their ability to achieve their dreams — including buying a home, starting a business, or providing for their family," Education Secretary Miguel Cardona said in a statement Wednesday. "Getting an education should set us free; not strap us down! That’s why, since Day One, the Biden-Harris administration has worked to fix broken federal student aid programs and deliver unprecedented relief to borrowers."
Cardona added that the Biden administration is "delivering targeted relief that will help ensure borrowers are not placed in a worse position financially because of the pandemic, and restore trust in a system that should be creating opportunity, not a debt trap." As for the income-driven repayment plan, the Education Department said the update will "substantially reduce future monthly payments for lower- and middle-income borrowers." The proposed rule would cut in half the amount borrowers have to pay each month on undergraduate loans — from 10% to 5%. The rule would also have borrowers with both undergraduate and graduate loans paying a weighted average rate. That proposed rule would also forgive loan balances after 10 years of payments, instead of the current 20 years under many income-driven repayment plans, for borrowers with original loan balances of $12,000 or less.
According to a Penn Wharton Budget Model, a one-time maximum debt forgiveness of $10,000 for borrowers who make less than $125,000 will cost around $300 billion for taxpayers.
The announcement comes as the U.S. is facing record-high inflation. But when asked if the plan would increase inflation, a senior administration official said the steps the Biden administration is taking will offset each other, noting there are "certain conditions and assumptions under which it could well be neutral or deflationary." The official said that the "combination" of an extension in the pause in loan payments and the "targeted debt relief" will "largely offset" inflation. "That's our view," the official said, adding that "if all borrowers claim the relief that they are entitled to, 43 million federal student loan borrowers will benefit, and of those, 20 million will have their debt completely canceled."
STUDENT LOAN HANDOUT: WALL STREET JOURNAL ROASTS BIDEN'S ‘INFLATION EXPANSION ACT’
Republicans are blasting the Biden administration's move, with Republican National Committee Chairwoman Ronna McDaniel calling it "Biden's bailout for the wealthy." "As hardworking Americans struggle with soaring costs and a recession, Biden is giving a handout to the rich," McDaniel said. "Biden's bailout unfairly punishes Americans who saved for college or made a different career choice, and voters see right through this short-sighted, poorly veiled vote-buy." And Senate Minority Leader Mitch McConnell slammed the move, saying Democrats have "found yet another way to make inflation even worse, reward far-left activists, and achieve nothing for millions of working American families who can barely tread water."
"President Biden’s student loan socialism is a slap in the face to every family who sacrificed to save for college, every graduate who paid their debt, and every American who chose a certain career path or volunteered to serve in our Armed Forces in order to avoid taking on debt," McConnell said. "This policy is astonishingly unfair." McConnell noted that the "median American with student loans already has a significantly higher income than the median American overall." "Experts who studied similar past proposals found that the overwhelming benefit of student loan socialism flows to higher-earning Americans," he said. "Democrats specifically wrote this policy to make sure that people earning six figures would benefit." McConnell added: "This is the one consistent thread that connects Democrats’ policies: Taking money and purchasing power away from working families and redistributing it to their favored friends."
More than 43 million Americans have federal studen... (show quote)


"Experts who studied similar past proposals found that the overwhelming benefit of student loan socialism flows to higher-earning Americans," he said. "Democrats specifically wrote this policy to make sure that people earning six figures would benefit." McConnell added: "This is the one consistent thread that connects Democrats’ policies: Taking money and purchasing power away from working families and redistributing it to their favored friends."

And there you have it.

Of course, the students could help with the harvest on summer vacation the way they used to and pay down their loans.
Oh, Lordy, are they too smart to work?

Reply
 
 
Sep 22, 2022 02:14:39   #
elledee
 
thebigp wrote:
More than 43 million Americans have federal student debt, with nearly a third owing less than $10,000 and more than half owing less than $20,000, according to the latest federal data. Pandemic-era payment freezes were set to end on Aug. 31. A recent analysis from the Committee for a Responsible Federal Budget (CRFB) found that the $10,000 forgiveness plan would undermine the Inflation Reduction Act by consuming nearly 10 years of deficit reduction and wipe out disinflationary benefit "[D]ebt cancellation would boost near-term inflation far more than the IRA will lower it," CRFB also wrote in its analysis. The "$10,000 of debt cancellation could add up to 15 basis points up front and create additional inflationary pressure over time."
Fox News Digital's Bradford Betz and Megan Henney — as well as the Associated Press and Elizabeth Economou — contributed to this report.
Maureen Mackey is managing editor of lifestyle for Fox News Digital
The national debt, according to the Treasury Department, currently sits at $30.7 trillion. Biden said his administration will forgive student loan debt up to $20,000 for borrowers who attended college on Pell Grants and $10,000 for borrowers who did not receive Pell Grants. He said the forgiveness "only applies to those earning less than $125,000." Biden also said that borrowers with undergraduate student loans are able to "cap repayment at 5% of your monthly income."
STUDENT LOAN DEAL COULD COST $900B AND FAVOR TOP EARNERS, ANALYSIS SHOWS: August 24, 2022 9:20am EDT
Student loan deal could cost $900B and favor top earners, analysis shows
Penn Wharton: Majority of student loan debt forgiven would boost top earners
• Facebook

• Twitter

• Comments

• Print

• Email
By Megan Henney FOXBusiness
Forgiving student loan debt could cost upward of $900 billion and disproportionately benefit wealthy Americans, according to a new analysis published on Tuesday.
The findings from the Penn Wharton Budget Model, a nonpartisan group at the University of Pennsylvania's Wharton School, come as President Biden announced that he will cancel $10,000 of federal student loan debt for certain borrowers earning less than $125,000, and $20,000 for Pell Grant recipients.
Penn Wharton estimated that a one-time forgiveness of $10,000 per borrower would cost about $300 billion if the policy is limited to individuals with incomes less than $125,000. The cost jumps to $330 billion if the program continues over the next decade and would cost $344 billion if the White House scrapped the income limits. Should Biden opt to wipe out $50,000 per borrower, it would cost the federal government roughly $980 billion, according to the analysis.
Canceling debt would also add to the nation's already ballooning national debt, which surged to a record-high $30 trillion last year. Between 69% and 73% of any debt forgiven would accrue to households that are in the top 60% of income distribution in the U.S.
LARRY SUMMERS WARNS STUDENT LOAN DEBT RELIEF COULD WORSEN INFLATION--
The White House has weighed for months whether to cancel some federal student loan debt. Biden campaigned on erasing at least $10,000 in student loan debt for most borrowers and has since floated income-based parameters that would cut off forgiveness for any household earning more than $125,000.
However, the matter has been complicated further by the soaring prices of everything from food to gasoline to rent, with fears that wiping out billions in loan debt could exacerbate the inflation crisis.
Critics, including former Treasury Secretary Larry Summers, have argued that putting more money back into borrowers' pockets could keep inflation painfully high in the coming months and years "I hope the Administration does not contribute to inflation macro economically by offering unreasonably generous student loan relief or micro economically by encouraging college tuition increases," Summers, a Harvard University professor, wrote in a series of tweets this week.
Biden also announced on Wednesday tha he intends to extend the federal student loan payment pause that was poised to expire at the end of August. The freeze — which also set the interest rate to 0% — began in March 2020 at the onset of the coronavirus pandemic. About 41 million Americans are benefiting from the federal government’s pause on student loan payments, which has been extended six times — twice by former President Trump and four times by Biden. At least $72 billion has been provided in relief on student loan interest alone.
Pandemic-era payment freezes were set to end on Aug. 31, but Biden on Wednesday also extended the payment pause "one final time through Dec. 31, 2022." The Department of Education on Wednesday said the application for loan cancellation will become available "no later than when the pause on federal student loan repayments terminates at the end of the year."
"Earning a college degree or certificate should give every person in America a leg up in securing a bright future. But for too many people, student loan debt has hindered their ability to achieve their dreams — including buying a home, starting a business, or providing for their family," Education Secretary Miguel Cardona said in a statement Wednesday. "Getting an education should set us free; not strap us down! That’s why, since Day One, the Biden-Harris administration has worked to fix broken federal student aid programs and deliver unprecedented relief to borrowers."
Cardona added that the Biden administration is "delivering targeted relief that will help ensure borrowers are not placed in a worse position financially because of the pandemic, and restore trust in a system that should be creating opportunity, not a debt trap." As for the income-driven repayment plan, the Education Department said the update will "substantially reduce future monthly payments for lower- and middle-income borrowers." The proposed rule would cut in half the amount borrowers have to pay each month on undergraduate loans — from 10% to 5%. The rule would also have borrowers with both undergraduate and graduate loans paying a weighted average rate. That proposed rule would also forgive loan balances after 10 years of payments, instead of the current 20 years under many income-driven repayment plans, for borrowers with original loan balances of $12,000 or less.
According to a Penn Wharton Budget Model, a one-time maximum debt forgiveness of $10,000 for borrowers who make less than $125,000 will cost around $300 billion for taxpayers.
The announcement comes as the U.S. is facing record-high inflation. But when asked if the plan would increase inflation, a senior administration official said the steps the Biden administration is taking will offset each other, noting there are "certain conditions and assumptions under which it could well be neutral or deflationary." The official said that the "combination" of an extension in the pause in loan payments and the "targeted debt relief" will "largely offset" inflation. "That's our view," the official said, adding that "if all borrowers claim the relief that they are entitled to, 43 million federal student loan borrowers will benefit, and of those, 20 million will have their debt completely canceled."
STUDENT LOAN HANDOUT: WALL STREET JOURNAL ROASTS BIDEN'S ‘INFLATION EXPANSION ACT’
Republicans are blasting the Biden administration's move, with Republican National Committee Chairwoman Ronna McDaniel calling it "Biden's bailout for the wealthy." "As hardworking Americans struggle with soaring costs and a recession, Biden is giving a handout to the rich," McDaniel said. "Biden's bailout unfairly punishes Americans who saved for college or made a different career choice, and voters see right through this short-sighted, poorly veiled vote-buy." And Senate Minority Leader Mitch McConnell slammed the move, saying Democrats have "found yet another way to make inflation even worse, reward far-left activists, and achieve nothing for millions of working American families who can barely tread water."
"President Biden’s student loan socialism is a slap in the face to every family who sacrificed to save for college, every graduate who paid their debt, and every American who chose a certain career path or volunteered to serve in our Armed Forces in order to avoid taking on debt," McConnell said. "This policy is astonishingly unfair." McConnell noted that the "median American with student loans already has a significantly higher income than the median American overall." "Experts who studied similar past proposals found that the overwhelming benefit of student loan socialism flows to higher-earning Americans," he said. "Democrats specifically wrote this policy to make sure that people earning six figures would benefit." McConnell added: "This is the one consistent thread that connects Democrats’ policies: Taking money and purchasing power away from working families and redistributing it to their favored friends."
More than 43 million Americans have federal studen... (show quote)


I pay my bills they can pay theirs

Reply
Sep 22, 2022 05:48:03   #
One Patriot
 
Milosia2 wrote:
Really ????
Giving indentured slaves a break would cause more inflation ?
It would also give us a stronger economy.
And the big question I have is
Who is this money owed to ????
Who is it that is vacuuming $3 trillion in debt from our economy.
What better could we do with this money, to curb inflation maybe.

And please tell me why you think living in a country that is totally privatized. And pay as you go would be a better place to live, for anyone.
Aside from one capitalist who owns everything.
At what point does the balance of sanity tip ???
Really ???? br Giving indentured slaves a break wo... (show quote)


You say the stupidest things! Did you grow up on welfare and food stamps? You do know that the money doesn’t come from the government? I hope you know that anyway. Let me educate you just in case you don’t. The money comes from us workers!

P.S. Don’t forget to call me a racist or any of the other names people like you call people that don’t think and/or talk the way you think I should think and/or talk.

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Sep 22, 2022 13:35:25   #
MidnightRider
 
thebigp wrote:
More than 43 million Americans have federal student debt, with nearly a third owing less than $10,000 and more than half owing less than $20,000, according to the latest federal data. Pandemic-era payment freezes were set to end on Aug. 31. A recent analysis from the Committee for a Responsible Federal Budget (CRFB) found that the $10,000 forgiveness plan would undermine the Inflation Reduction Act by consuming nearly 10 years of deficit reduction and wipe out disinflationary benefit "[D]ebt cancellation would boost near-term inflation far more than the IRA will lower it," CRFB also wrote in its analysis. The "$10,000 of debt cancellation could add up to 15 basis points up front and create additional inflationary pressure over time."
Fox News Digital's Bradford Betz and Megan Henney — as well as the Associated Press and Elizabeth Economou — contributed to this report.
Maureen Mackey is managing editor of lifestyle for Fox News Digital
The national debt, according to the Treasury Department, currently sits at $30.7 trillion. Biden said his administration will forgive student loan debt up to $20,000 for borrowers who attended college on Pell Grants and $10,000 for borrowers who did not receive Pell Grants. He said the forgiveness "only applies to those earning less than $125,000." Biden also said that borrowers with undergraduate student loans are able to "cap repayment at 5% of your monthly income."
STUDENT LOAN DEAL COULD COST $900B AND FAVOR TOP EARNERS, ANALYSIS SHOWS: August 24, 2022 9:20am EDT
Student loan deal could cost $900B and favor top earners, analysis shows
Penn Wharton: Majority of student loan debt forgiven would boost top earners
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By Megan Henney FOXBusiness
Forgiving student loan debt could cost upward of $900 billion and disproportionately benefit wealthy Americans, according to a new analysis published on Tuesday.
The findings from the Penn Wharton Budget Model, a nonpartisan group at the University of Pennsylvania's Wharton School, come as President Biden announced that he will cancel $10,000 of federal student loan debt for certain borrowers earning less than $125,000, and $20,000 for Pell Grant recipients.
Penn Wharton estimated that a one-time forgiveness of $10,000 per borrower would cost about $300 billion if the policy is limited to individuals with incomes less than $125,000. The cost jumps to $330 billion if the program continues over the next decade and would cost $344 billion if the White House scrapped the income limits. Should Biden opt to wipe out $50,000 per borrower, it would cost the federal government roughly $980 billion, according to the analysis.
Canceling debt would also add to the nation's already ballooning national debt, which surged to a record-high $30 trillion last year. Between 69% and 73% of any debt forgiven would accrue to households that are in the top 60% of income distribution in the U.S.
LARRY SUMMERS WARNS STUDENT LOAN DEBT RELIEF COULD WORSEN INFLATION--
The White House has weighed for months whether to cancel some federal student loan debt. Biden campaigned on erasing at least $10,000 in student loan debt for most borrowers and has since floated income-based parameters that would cut off forgiveness for any household earning more than $125,000.
However, the matter has been complicated further by the soaring prices of everything from food to gasoline to rent, with fears that wiping out billions in loan debt could exacerbate the inflation crisis.
Critics, including former Treasury Secretary Larry Summers, have argued that putting more money back into borrowers' pockets could keep inflation painfully high in the coming months and years "I hope the Administration does not contribute to inflation macro economically by offering unreasonably generous student loan relief or micro economically by encouraging college tuition increases," Summers, a Harvard University professor, wrote in a series of tweets this week.
Biden also announced on Wednesday tha he intends to extend the federal student loan payment pause that was poised to expire at the end of August. The freeze — which also set the interest rate to 0% — began in March 2020 at the onset of the coronavirus pandemic. About 41 million Americans are benefiting from the federal government’s pause on student loan payments, which has been extended six times — twice by former President Trump and four times by Biden. At least $72 billion has been provided in relief on student loan interest alone.
Pandemic-era payment freezes were set to end on Aug. 31, but Biden on Wednesday also extended the payment pause "one final time through Dec. 31, 2022." The Department of Education on Wednesday said the application for loan cancellation will become available "no later than when the pause on federal student loan repayments terminates at the end of the year."
"Earning a college degree or certificate should give every person in America a leg up in securing a bright future. But for too many people, student loan debt has hindered their ability to achieve their dreams — including buying a home, starting a business, or providing for their family," Education Secretary Miguel Cardona said in a statement Wednesday. "Getting an education should set us free; not strap us down! That’s why, since Day One, the Biden-Harris administration has worked to fix broken federal student aid programs and deliver unprecedented relief to borrowers."
Cardona added that the Biden administration is "delivering targeted relief that will help ensure borrowers are not placed in a worse position financially because of the pandemic, and restore trust in a system that should be creating opportunity, not a debt trap." As for the income-driven repayment plan, the Education Department said the update will "substantially reduce future monthly payments for lower- and middle-income borrowers." The proposed rule would cut in half the amount borrowers have to pay each month on undergraduate loans — from 10% to 5%. The rule would also have borrowers with both undergraduate and graduate loans paying a weighted average rate. That proposed rule would also forgive loan balances after 10 years of payments, instead of the current 20 years under many income-driven repayment plans, for borrowers with original loan balances of $12,000 or less.
According to a Penn Wharton Budget Model, a one-time maximum debt forgiveness of $10,000 for borrowers who make less than $125,000 will cost around $300 billion for taxpayers.
The announcement comes as the U.S. is facing record-high inflation. But when asked if the plan would increase inflation, a senior administration official said the steps the Biden administration is taking will offset each other, noting there are "certain conditions and assumptions under which it could well be neutral or deflationary." The official said that the "combination" of an extension in the pause in loan payments and the "targeted debt relief" will "largely offset" inflation. "That's our view," the official said, adding that "if all borrowers claim the relief that they are entitled to, 43 million federal student loan borrowers will benefit, and of those, 20 million will have their debt completely canceled."
STUDENT LOAN HANDOUT: WALL STREET JOURNAL ROASTS BIDEN'S ‘INFLATION EXPANSION ACT’
Republicans are blasting the Biden administration's move, with Republican National Committee Chairwoman Ronna McDaniel calling it "Biden's bailout for the wealthy." "As hardworking Americans struggle with soaring costs and a recession, Biden is giving a handout to the rich," McDaniel said. "Biden's bailout unfairly punishes Americans who saved for college or made a different career choice, and voters see right through this short-sighted, poorly veiled vote-buy." And Senate Minority Leader Mitch McConnell slammed the move, saying Democrats have "found yet another way to make inflation even worse, reward far-left activists, and achieve nothing for millions of working American families who can barely tread water."
"President Biden’s student loan socialism is a slap in the face to every family who sacrificed to save for college, every graduate who paid their debt, and every American who chose a certain career path or volunteered to serve in our Armed Forces in order to avoid taking on debt," McConnell said. "This policy is astonishingly unfair." McConnell noted that the "median American with student loans already has a significantly higher income than the median American overall." "Experts who studied similar past proposals found that the overwhelming benefit of student loan socialism flows to higher-earning Americans," he said. "Democrats specifically wrote this policy to make sure that people earning six figures would benefit." McConnell added: "This is the one consistent thread that connects Democrats’ policies: Taking money and purchasing power away from working families and redistributing it to their favored friends."
More than 43 million Americans have federal studen... (show quote)


Consider this now, if Trump or any Repub or Conservative gets in, first policy to go is asinine student debt forgiveness. Then open the pipeline and reset phony food prices.

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Sep 22, 2022 16:46:24   #
CounterRevolutionary
 
elledee wrote:
I pay my bills they can pay theirs


Because there is nothing more valuable than your good name. Kudos.

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