Student loan forgiveness – experts on banking, public spending and education policy look at the impact of Biden’s plan

  President Joe Biden announced a program to provide student debt relief to millions of borrowers of federal loans. The plan would offer up to US$10,000 in forgiveness for people who earn less than $125,000 – $250,000 for couples – and up to $20,000 for Pell Grant recipients. Biden also extended the pause on repaying federal student loan debt through Dec. 31, 2022, and has proposed a cap on income that can be used to calculate how much borrowers repay through income-driven repayment.

  We asked three experts to explain the decision and its impact.

Six things Betsy DeVos has done on higher ed

  July 1 marked the beginning of a new year for federal financial aid for higher education, bringing changes that will affect the millions of Americans who use these programs. On the positive side, low-income students will be able to access additional Pell Grant aid thanks to Congress bringing back year-round Pell, a program that provides additional funds for students who attempt more coursework—often during a summer session. In less fortunate news, the annual reset of student loan interest rates resulted in a 69-basis point increase to 4.45 percent for undergraduates.