The following report is by Bloomberg:
President Joe Biden detailed $9 billion in new student-loan relief, saying it would provide a boost to the US economy as he sought to reassure Americans resuming payments that the administration is working to ease their debt burdens.
This kind of relief is life-changing for individuals and their families. But it’s good for our economy as a whole as well.
By freeing millions of Americans from the crushing burden of student debt, it means they can go and get their lives in order. They can think about buying a house, they can start a business or starting a family. This matters. This matters in their daily lives.
Biden said Wednesday at the White House.
Biden campaigned on the issue of tackling the nation’s $1.7 trillion student-debt problem and has tried to chip away at the issue using other avenues after the Supreme Court struck down his $400 billion program to provide relief to more than 40 million borrowers. That plan was popular with progressives, young people and Black voters who helped Biden win in 2020 and are critical to his reelection bid.
The latest relief comes as millions of Americans resume student loan payments.
Moratoriums on payments, first put in place by then-President Donald Trump in 2020 as Covid-19 lockdowns began, were extended multiple times. Biden and House Republicans this summer agreed to allow those payments to resume as part of a deal over the nation’s debt limit. Interest accruals resumed on Sept. 1, and bills will start coming due in October.
Earlier: Why Student Loan Payments Are Back, And What It Means: QuickTake
The moratorium on student-loan repayments provided financial relief during the pandemic. The resumption, though, threatens to further strain household budgets at a time when Americans say they are feeling the sting of high inflation and polls show them anxious about the overall state of the economy.
The economy remains a political liability for Biden even as data shows a strong jobs market and resilient growth. A majority of Americans say Republicans will do a better job bolstering the economy, a Gallup poll Tuesday found, giving the party its widest lead over Democrats on that metric in three decades.
The administration’s latest steps will bring relief for 125,000 borrowers through changes to programs intended to aid public servants, Americans with disabilities and low-income borrowers, according to the White House.
That total includes $5.2 billion in debt relief for 53,000 borrowers in public service loan forgiveness programs.
The administration also identified 51,000 additional borrowers who paid for at least 20 years but never got relief and will provide them nearly $2.8 billion in debt relief through fixes to income-driven repayment.
Another $1.2 billion in relief will go to about 22,000 borrowers deemed to have a total or permanent disability, the White House said.
The moves bring the total debt cancellation approved by the administration to $127 billion, aiding about 3.6 million Americans.
AUTHOR COMMENTARY
The wicked borroweth, and payeth not again: but the righteous sheweth mercy, and giveth.
Psalm 37:21
Most Americans get into debt never planning to pay it off, frivolously spending money they don’t have, and then demanding the government payoff their insurmountable debt. It’s thievery; but Sleepy Joe is here to buy more votes by paying off some of this debt; and by him I mean you and I, as this will just get tacked onto the already unfathomable amount of debt this country has, as we get to pay for people’s theft and selfish decisions.
Now that student loan payments have recommenced, it comes at a time when not only are economic conditions at their worst, interest rates remain high and are likely set to rise again before we starting some cuts next year. The student loan payments is yet another nail in the coffin for Americans, that are tapped-out and finished already.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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My wife and I have a student loan for her son, the problem is that when we couldn’t afford it they won’t work with ya, then blovid hit and ya weren’t allowed to pay anything; while the interest just kept going along, which to me is another scam. We now can pay it and are. I think the right way to go is to stop the interest and people could pay down faster; another words not debt forgiveness but don’t charge the usury ( interest forgiveness)
It’s all been precisely calculated to allow all of this to happen at once, knowing full well that what ‘they’ did would to these types of economic conditions, and now they are slapping people with these payments when people cannot pay bills in general, but with even higher rates attached.
With the way they calculate the rates; I would say that a lot of people have payed off the loan already and they are just greedy.
Thanks Jacob