Do you have student loan debt?
Don't worry. That is if you work for a civil servant.
Civil servants do not have student loan debt.
from Reuters, „U.S. President Joe Biden announced Thursday that he will cancel $6 billion in student loans for 78,000 borrowers, bringing his administration's total student loan cancellations to nearly $150 billion.'' .”
„Democrat Biden last year promised to find another path to debt relief after the Supreme Court in June blocked his sweeping plan to cancel $430 billion in student loan debt. '' reported Reuters.
The story continued:
The newest group includes public servants such as teachers, nurses, and firefighters who qualify for the Public Service Loan Forgiveness Program, created in 2007 to forgive the student loans of Americans who work in the public service. have.
“These public servants have dedicated their careers to serving their communities, but because of past administrative failures, they have been denied the relief they are entitled to under the law,” Biden said in a statement.
As of June 2023, approximately 43.4 million student loan recipients in the United States had a loan balance of $1.63 trillion, according to the Federal Student Aid website. Higher education debt has tripled since the 2008 financial crisis.
Rising interest rates and high payments on these loans have made it difficult for young Americans to buy homes and make other investments, and Democrats have long sought a waiver from the U.S. government. Republicans largely oppose such action.
Is it a political ploy?
Don't think for a second that Biden's outlook for the November election won't affect this.
First, he needs the votes of young people.
„We will not back down from using every tool at our disposal to provide student debt relief to more Americans and build a middle-to-lower economy,“ Biden said.
Polls continue to show Republican presidential candidate Donald Trump leading Biden. This is especially concerning for the Biden campaign in battleground states that the president is currently losing.
Don't be surprised if Joe Biden forgives even more student loan debt between now and November.