Biden Admin to Cancel $415 Million in Student Loan Debt for Roughly 16,000 People

A see of college graduates at the commencement ceremony.

The Biden administration announced Wednesday it will cancel $415 million in student debt for nearly 16,000 borrowers who claim they were misled by for-profit colleges.

The loans for almost 16,000 former students will be canceled under a legal provision called the borrower defense to repayment, which allows students to have their debts erased if they prove a for-profit school defrauded them, the Department of Education (DOE) said in a press release.

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Attorney General Miyares Announces Rule to Cut His Office’s Student Debt Collection Fees to 15 Percent

Attorney General Jason Miyares announced a new policy to cut attorneys’ fees for debt collection on student loan debt at Virginia’s public colleges. Under Virginia law, the Office of the Attorney General (OAG) is responsible to provide debt collection services on behalf of state agencies, and can retain as revenue up to 30 percent. Miyares’ internal policy limits that to 15 percent on new claims referred to the OAG, where possible.

“As someone who worked to put themself through college and still has their own student loans, I understand the strain student loans can put on working families. By working to reduce the attorney collection fee from 30 percent to 15 percent on accounts deemed delinquent by the respective universities, we are making immediate, internal procedural improvements that will help Virginians,” Miyares said in a Wednesday press release.

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Commentary: A Market-Driven Solution to the Student-Loan Debt Spiral

Graduation caps being thrown in the air.

It’s calculated that somewhere north of 45 million Americans have run up $1.73 trillion worth of college debt. The numbers may surprise a lot or a little, which is really not the point.

The main thing is that debt now measured in the trillions is in a sense a logical midpoint to the federal government’s unfortunate involvement in the financing of college education. “No one spends the money of others very carefully” is a truth as old as humanity (or money) is, and the trillions worth of federal student loan debt vivify this truth. We know this because the hangovers (literal and figurative) from time spent on campus continue to grow.

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Biden Administration Plans to Cancel $5.8 Billion More in Student Loan Debt

Man on macbook working

The Department of Education announced Thursday that it will cancel student loan debt for over 300,000 borrowers with severe disabilities.

The program, set to erase over $5.8 billion in total debt, will begin in September and apply to over 323,000 borrowers classified as having a “total and permanent disability” by the Social Security Administration (SSA), the Education Department announced. Borrowers will now receive automatic discharges of their debt, whereas previously needed to fill out applications.

“Today’s action removes a major barrier that prevented far too many borrowers with disabilities from receiving the total and permanent disability discharges they are entitled to under the law,” Education Secretary Miguel Cardona said in the announcement.

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‘Students Right to Know Act’ Proposes Transparency on Costs, Loans, Post-Graduate Salary Data for Tennessee Colleges, Universities

The Tennessee General Assembly is considering requiring more transparency when it comes to higher education. If passed, the “Students Right to Know Act” would require the Tennessee Higher Education Commission (THEC) to publish a database concerning different state universities or vocational schools’ attendance costs, monthly student loan payments, graduation or completion rates, and post-graduate salaries.

The bill was introduced by State Representative Kent Calfee (R-Kingston) and State Senator Kerry Roberts (R-Springfield). The latest amendments to the act rewrote the bill to clarify and expand its scope – as well as expand the data to be included within the database on military options for students.

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Ilhan Omar Goes on Student Debt Rant After Biden Says He Won’t Cancel Loans

After a Tuesday evening town hall, president Joe Biden said he will not cancel up to $50,000 of student loans, prompting backlash from the progressive wing of his own party. 

“I will not make that happen,” Biden said when asked what he will do to cancel up to $50,000 in student loans. 

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Rep. Ilhan Omar Urges Biden to Cancel $50,000 of Student Debt Per Person

Rep. Ilhan Omar (D-MN-05) has introduced a “bold resolution” asking President-elect Joe Biden to federally remove $50,000 of student loan debt per person.

The congress member introduced the resolution alongside Reps. Ayanna Pressley, Maxine Waters, and Alma Adams. The resolution outlines a path for Biden to use “excessive authority” to remove student loan debt while simultaneously ensuring there are no tax liabilities for federal student loan borrowers.

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Rashida Tlaib Speaks at Democratic Socialists Event, Says Student Debt Tied to ‘Racial Discrimination’

Rep. Rashida Tlaib (D-MI-13) spoke this week at an event hosted by the Young Democratic Socialists of America at Wayne State University.

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Commentary: Forgiving Student Debt Isn’t the Solution to Anything

by Preston Cooper   The time-honored American tradition of outlandish political promises continues apace. Now, the spotlight is on student debt. Democratic presidential candidate Elizabeth Warren added to the debate recently when she put forward a proposal to cancel $640 billion worth of federal and private student loans. Warren touts…

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Federal Report Says Millennials Are Poorer Than Other Generations

by Ryan McMaken   One of the challenges in looking at income and wealth data is getting a sense of how different demographic groups are affected. It’s relatively easy to find median income and wealth data over time for the entire population, for example. But then problems of interpretation immediately…

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