This one chart puts Biden’s student loan cancellation into perspective

Related articles

The U.S. Department of Education announced last week it would wipe out $5.8 billion of student loan debt held by 323,000 borrowers who have a total and permanent disability (TPD). Eligible debt holders won’t even need to apply for the forgiveness: The Biden administration will automatically discharge the loans in September by using Social Security Administration records to identify those people who are listed as disabled.

This marks the third round of student debt cancellation issued by the Biden camp since moving into 1600 Pennsylvania Avenue. The previous rounds were for borrowers who attended schools like ITT Technical Institute and Corinthian Colleges that the Department of Education determined used deceptive or illegal practices.

In total, the Department of Education has approved cancelling $8.7 billion in student loan debt held by more than 450,000 borrowers.

But in the grand scheme of things, that’s only a tiny percentage of all U.S. student loan debt. Indeed, the $8.7 billion amounts to less than 1% of all student loan debt. As of the second quarter of 2021, U.S. borrowers hold more than $1.73 trillion in student loan debt.

Read more…

Related Posts

The Future of Insurance USA Returns in June 2023

Headwinds of change are ripping through insurance –inflation is causing a profitability crunch, customers are demanding digital perfection, and a scarcity of talent leaves the industry...

Next Post

Subscribe Us

By clicking subscribe, I authorize: (1) Our Finance Guide to use and share my information in accordance with its Terms of Service and Privacy Policy, and (2) Our Finance Guide or third-party companies, including Our Finance Guide’s business partners, to contact me by email with offers for goods and services at the email address provided. Please note that the information you have provided to us may be supplemented with additional information obtained from other sources.