SOFI - 30 Million Could Benefit From Biden's New Student Debt Relief Plan — But 5 Public Companies Might Suffer | Benzinga
The White House announced this week a new attempt to forgive student debt to almost 30 million Americans.
For 30 years, college tuition prices have increased faster than median incomes. As a result, college graduates are saddled with heavy student debt, impacting their ability to buy homes, start a family, travel, invest or build savings.
This has become an increasingly complex problem for lower- and middle-income Americans.
The Biden administration is now revising a post-pandemic measure that attempted to wipe out $400 billion of student debt, but was blocked last year by the Supreme Court.
In the context of the 2024 election, the new proposal can be read as a final effort to win the hearts of a significant portion of the population who currently struggles with student debt.
Student debt is not only kept by fresh graduates. The average debt for those aged 35 to 49 is over $42,000 and over $44,000 for those 50 to 61, who add up to about 21 million people between both groups.
With this new, more moderate plan, the administration is hoping to avoid an unconstitutionality ruling by targeting more specific groups of borrowers instead of the entire cohort.
According to the New York Times, the new plan will be published in the Federal Register and go through a ...