A comprehensive look at student loan forgiveness
The Consumer Financial Protection Bureau provided an overview of which student loan borrowers benefited from debt forgiveness plans.
In an analysis, investigators examined the outcomes of borrowers whose student loans were partially or fully forgiven between October 2023 and January 2024, according to a report from Money.
The investigators found that 63% of the borrowers faced challenges making payments. Those with student debt also reported delays in buying a home, starting a family, becoming employed and receiving medical care. Further, some of them had difficulties affording food and medicine.
The Biden administration’s student debt relief efforts — through the Public Service Loan Forgiveness and income-driven repayment programs — have led to the forgiveness of about $175 billion among 5 million borrowers. About 10% of federal student loan borrowers received debt relief. Many of the borrowers had a median household income below the overall median income level and about 25% of them were unable to complete their degrees — leaving them with debt and no college degree to help boost their income. Borrowers who receive debt relief were more likely to be female, Black or over the age of 30 years.
Current efforts by the Biden administration to enact widespread student loan forgiveness have been met with legal challenges, and experts have suggested that the future of these plans is uncertain.
The American Dental Association continues to advocate for student debt relief, including legislation that would lower interest rates overall and pause the accrual of interest and payments on federal student loans for dental students in residency.
Read more: Money
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