The morality of canceling student debt

  President-elect Joe Biden promised to forgive at least some student debt during his campaign, and he now supports immediately canceling US$10,000 per borrower as part of COVID-19 relief measures.

  Such proposals are likely to be quite popular. A poll from 2019 found that 58% of voters support canceling all federal student debt.

  But there are those who question the idea of debt forgiveness and call it unfair to those who never took out student debt or already paid it off.

The most horrifying provisions hidden in the House Republican tax plan

  Last week, House Republicans released their tax plan, finally providing long-awaited details on what they really mean when they promise “tax reform.” While they billed it as a middle-class tax cut, the new legislation is filled with gifts for wealthy corporations and the richest Americans. Meanwhile, middle-class and working families would at best get scraps—and in many cases, see their taxes increase.

  Many of the most extreme tax increases come in the form of eliminated tax credits or deductions buried deep in the text of the bill—and ignored by lawmakers and the media. With tax increases affecting groups ranging from seniors and people with disabilities, to families facing costly medical bills, to immigrant children, to people with student loans—to name just a few—the bill is a virtual laundry list of tax increases on populations who are often struggling to make ends meet.

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.

Borrower voices explain the need for affordable student-loan repayment

  Student-loan debt continues to be an issue of grave concern for American student borrowers. In 2014, there were approximately 41 million Americans with federal student-loan debt, up from 28 million in 2007. Outstanding debt has reached $1.1 trillion in federal student loans and $200 billion in private student loans. Last year, in an effort to make repaying student-loan debt more affordable, President Barack Obama announced his intention to expand Pay As You Earn, or PAYE, a repayment plan that allows certain student-loan borrowers to repay their debt based on their income. President Obama said that PAYE gives “graduates the opportunity to pursue the dreams that inspired them to go to school in the first place.”

Elizabeth Robinson: Government-subsidized education inflation

  Only a few weeks ago, college graduations took place all over the country. Families traveled to see their loved ones receive diplomas and move on to another chapter in their lives. And after four or more years of college, those graduates are hoping for a bright future.

  While some of them may have jobs lined up, many recent graduates are encountering a sobering reality: Around half of all college graduates under 25 are either unemployed or underemployed. To make matters worse, they are suffocating under a huge mountain of accrued debt, averaging nearly $25,000 per graduate, according to a recent Associated Press study.