Around 44 million Americans owe about $1.7 trillion of educational debt. A study by Judith Scott-Clayton of Columbia University found that the loan-default rate for borrowers without any degree was 40 percent. For those with a bachelor’s degree, it was less than 8 percent.
The Department of Education may cancel up to $20,000 of student debt for Pell Grant recipients with loans held by the federal government. Pell Grants are targeted at low-income students. Individuals who make less than $125,000 a year or couples who make less than $250,000 a year are eligible. 43 million borrowers will benefit from the plan. 90% of the relief in the measure will go to those earning less than $75,000 a year.
The move will be enough to wipe out some student debt entirely: 15 million of the 43 million people with federal loans owe less than $10,000, and those borrowers are typically the most likely to fail to pay back their loans. The plan will eliminate student debt for about 20 million people. The plan will also decrease monthly payments by an average of $250 for borrowers with a remaining balance.
The Office of Management and Budget forecast this year’s budget deficit will decline by $1.7 trillion. The single largest drop in the deficit in U.S. history. The record deficit was $3.13 trillion in 2020, during the Trump presidency.
Biden is touring the country promoting his accomplishments. In 35 trips to 23 states, he will “make clear that the President and Congressional Democrats beat the special interests and delivered what was best for the American people.”
He passed the historic bipartisan infrastructure bill; the CHIPS and Science Act; the Inflation Reduction Act; the gun safety law, and PACT. Americans should unite under these accomplishments but the Republican leadership only displays radical extremism.