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The Inside Scoop on the Biden Federal Student Loan Forgiveness Plan From the Fed

By Jacob Goss, Daniel Mangrum, and Joelle Scally – Federal Reserve Bank of New York On August 24, 2022, the White House released a plan to cancel federal student loans for most borrowers. In April,  we wrote about the costs and who most benefits from a few hypothetical loan forgiveness proposals using our Consumer Credit Panel, based on Equifax credit …

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Department of Education Says It Has Legal Authority to Cancel Student Loan Debt. So There!

Department of Education Says It Has Legal Authority to Cancel Student Loan Debt. So There!

It is far too early to see how the proposed Biden student loan forgiveness proposal is actually going to play out. I expect legal challenges to the proposal so nothing should be counted on until all the hurdles have been crossed and forgiveness is actually granted. Be hopeful but don’t count on it until the …

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Biden Administration Student Loan Solution Not Likely to Save the Patient

Moral hazard is a situation in which one party gets involved in a risky event knowing that it is protected against the risk and the other party will incur the cost.  – The Economic Times Christmas came early this year for student-loan debtors. First, the Biden administration is extending the pause on student-loan payments until the end …

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On August 25, 2022 Here is What You Need to Know About Biden’s Student Loan Forgiveness Plan

On August 25, 2022 Here is What You Need to Know About Biden’s Student Loan Forgiveness Plan

Nothing. I don’t care who the political administration in office is. When big student loan announcements are made, like yesterday’s, it is more of a press release than a plan you can count on. I did not see anything in the release that you should count on or plan on until the details are released, …

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This is Your Final Student Loan Payment Pause and More Student Loan Forgiveness

Today, the U.S. Department of Education (Department) announced a final extension of the pause on student loan repayment, interest, and collections through December 31, 2022. Borrowers should plan to resume payments in January 2023. While the economy continues to improve, COVID cases remain at an elevated level, and the President has made clear that pandemic-related …

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Biden Administration Flirts With Student-Loan Debtors: Throw Me A Moon Pie, Mister!

Biden Administration Flirts With Student-Loan Debtors: Throw Me A Moon Pie, Mister!

Mardis Gras parades are an ancient tradition in New Orleans, going back to the eighteenth century. Social clubs called krewes sponsor these parades, and krewe members throw trinkets called throws at parade-goers. Typically, a throw is a necklace of plastic beads, but krew members also throw toys, small stuffed animals, and plastic souvenir cups. Every year, Louisianians …

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It Will Surprise You Who is Not Happy With Biden’s Student Loan Forgiveness Plan

President Biden promised college borrowers $10,000 in student-loan forgiveness when he was on the campaign trail. He has yet to deliver on that promise. Some progressives urge Biden to forgive more student debt. The NAACP said, “$10,000 is not enough, We’re calling on our elected officials to cancel federal student loan debt with no means-testing.” …

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College Enrollments are Down, Tuition Prices are Up & Student-Loan Forgiveness Is on the Way: The Wounded Grizzly Syndrome

College Enrollments are Down, Tuition Prices are Up & Student-Loan Forgiveness Is on the Way: The Wounded Grizzly Syndrome

Earlier this week, Inside Higher Education, reported that college enrollments have declined for five straight semesters. In the spring 2020 semester–when the COVID epidemic began–the nation’s colleges enrolled 17.1 million students. Today, 15.9 million Americans are in postsecondary classes–a decline of 1.2 million students. Some states saw more significant declines than others, and some saw …

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