{"id":64440,"date":"2024-05-03T09:51:06","date_gmt":"2024-05-03T16:51:06","guid":{"rendered":"https:\/\/lapost.us\/?p=64440"},"modified":"2024-05-03T09:51:06","modified_gmt":"2024-05-03T16:51:06","slug":"whats-the-cost-of-u-s-student-debt","status":"publish","type":"post","link":"https:\/\/lapost.us\/?p=64440","title":{"rendered":"What\u2019s the Cost of U.S. Student Debt?"},"content":{"rendered":"<div class=\"td_block_wrap tdb_single_author tdi_59 td-pb-border-top td_block_template_1 tdb-post-meta\" data-td-block-uid=\"tdi_59\">\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-author-name-wrap\"><span class=\"tdb-author-by\">By<\/span><a class=\"tdb-author-name\" href=\"https:\/\/ethnicmediaservices.org\/author\/selen-ozturk\/\">Selen Ozturk<\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"td_block_wrap tdb_single_date tdi_60 td-pb-border-top td_block_template_1 tdb-post-meta\" data-td-block-uid=\"tdi_60\">\n<div class=\"tdb-block-inner td-fix-index\"><i class=\"tdb-date-icon tdc-font-fa tdc-font-fa-calendar\"><\/i><time class=\"entry-date updated td-module-date\" datetime=\"2024-04-24T09:50:00-07:00\">Apr 24, 2024<\/time><\/div>\n<\/div>\n<div class=\"td_block_wrap tdb_single_subtitle tdi_61 td-pb-border-top td_block_template_1\" data-td-block-uid=\"tdi_61\">\n<div class=\"tdb-block-inner td-fix-index\">\n<p>As nearly 45 million Americans and counting owe over $1.7 trillion in student debt, what\u2019s the future of college affordability?<\/p>\n<\/div>\n<\/div>\n<div class=\"td_block_wrap tdb_single_featured_image tdi_62 tdb-content-horiz-left td-pb-border-top td_block_template_1\" data-td-block-uid=\"tdi_62\">\n<div class=\"tdb-block-inner td-fix-index\"><img loading=\"lazy\" decoding=\"async\" class=\"entry-thumb\" title=\"student debt\" src=\"https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2024\/05\/student-debt.png\" sizes=\"auto, (max-width: 2044px) 100vw, 2044px\" srcset=\"https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2024\/05\/student-debt.png 2044w, https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2024\/05\/student-debt-300x162.png 300w, https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2024\/05\/student-debt-1024x552.png 1024w, https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2024\/05\/student-debt-768x414.png 768w, https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2024\/05\/student-debt-1536x828.png 1536w, https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2024\/05\/student-debt-150x81.png 150w, https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2024\/05\/student-debt-696x375.png 696w, https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2024\/05\/student-debt-1068x576.png 1068w, https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2024\/05\/student-debt-1920x1035.png 1920w\" alt=\"\" width=\"2044\" height=\"1102\" \/><\/div>\n<\/div>\n<div class=\"td_block_wrap tdb_single_content tdi_63 td-pb-border-top td_block_template_1 td-post-content tagdiv-type\" data-td-block-uid=\"tdi_63\">\n<div class=\"tdb-block-inner td-fix-index\">\n<p>As nearly 45 million Americans and counting owe over $1.7 trillion in student debt, what\u2019s the future of college affordability?<\/p>\n<p>Though the Biden administration has made historic strides in passing student loan forgiveness initiatives, ongoing lawsuits by Republican-majority states and a possible change of White House leadership this election year threatens their survival.<\/p>\n<p>Meanwhile, the lifting of pandemic-era freezes to federal student loan payment forces borrowers nationwide to choose once again between greater debt or affording basic needs \u2014 underscoring the importance of forgiveness programs.<\/p>\n<p>At an Ethnic Media Services briefing, student loan experts and a borrower who got over $100,000 in student loans forgiven explained what forgiveness programs have been launched and expanded under the Biden administration, which have been cut, and what\u2019s next for student loans.<\/p>\n<h2 class=\"wp-block-heading\">Student debt relief under Biden<\/h2>\n<p>The Biden administration has approached debt relief in two ways: through broad relief, by approving \u201cupwards of $153 billion in student loan forgiveness for around 4.3 million borrowers,\u201d and through targeted relief, by reforming existing programs, said student loan lawyer and author Adam Minsky.<\/p>\n<p>Efforts to provide relief have met with staunch political opposition, however.<\/p>\n<p>The administration\u2019s first attempt would have forgiven up to $20,000 in federal student loan debt for millions of borrowers per the Heroes Act of 2003, which let the Education Department enact waive federal loan program regulations \u201cin response to economic harm caused by a national emergency \u2014 in this case, the pandemic,\u201d Minsky said.<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<div class=\"youtube-embed\" data-video_id=\"21ZF39cg_j0\"><iframe loading=\"lazy\" id=\"widget2\" title=\"Biden Administration Taking \u201cSecond Shot\u201d at Student Loan Debt Relief\" src=\"https:\/\/www.youtube.com\/embed\/21ZF39cg_j0?feature=oembed&amp;enablejsapi=1\" width=\"100%\" height=\"392\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div><figcaption class=\"wp-element-caption\"><em>Adam Minsky, student loan lawyer and author, explains Biden\u2019s latest plan to provide student-loan debt relief, including the five pathways for borrowers to get relief.<\/em><\/figcaption><\/figure>\n<p>This was challenged by a coalition of Republican-majority states led by Nebraska and Missouri, and was struck down by the conservative-majority Supreme Court last June on the grounds that mass debt forgiveness was not expressly mentioned in the act.<\/p>\n<p>The administration\u2019s current, second attempt at broad relief involves a separate legal authority \u2014 the Higher Education Act, \u201cwhich does expressly allow for the waiver or cancellation of student loan debt, although it\u2019s only been used in limited circumstances to date,\u201d explained Minsky. \u201cThe program could go live for borrowers as early as the fall, but most people expect this will be challenged in court as well, though it stands a stronger chance of surviving a legal challenge.\u201d<\/p>\n<p>Other, targeted initiatives include the IDR Account Adjustment giving forgiveness credit to borrowers unable to pay income-driven loan plans in 20 or 25 years; the Public Service Loan Forgiveness (PSLF) program providing forgiveness in as little as 10 years to borrowers who work for nonprofit or government organizations; and the Save Plan, exempting borrowers earning below a certain income for payment and shortening the forgiveness timeline for some earning above it.<\/p>\n<p>Many of these initiatives have also met with opposition. For instance, the Save Plan, in which at least eight million borrowers have enrolled, \u201cis subject to two new, separate lawsuits brought by 18 Republican states, including some of those that blocked Biden\u2019s first mass debt relief plan,\u201d said Minsky.<\/p>\n<p>\u201cA common criticism is that these programs are unfair to people who have already paid their debt,\u201d he added. \u201cBut people saved for retirement on their own all their lives before Social Security came around, and we still implemented it. You could argue it was unfair to them, but we still generally think the measure was positive.\u201d<\/p>\n<h2 class=\"wp-block-heading\">The landscape for borrowers<\/h2>\n<p>\u201cWe\u2019re seeing significant government actions to address the student debt crisis, but the effect of this is that borrowers are confused about whether or not they will be receiving forgiveness, what the parameters are, who is eligible, and what the consequences are for non-payment,\u201d said Michele Shepard Zampini, Senior Director of College Affordability at The Institute for College Access and Success.<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<div class=\"youtube-embed\" data-video_id=\"Eqg8UvgT3ts\"><iframe loading=\"lazy\" id=\"widget4\" title=\"Holding Colleges Accountable for Their Role in the Student Debt Crisis\" src=\"https:\/\/www.youtube.com\/embed\/Eqg8UvgT3ts?feature=oembed&amp;enablejsapi=1\" width=\"100%\" height=\"392\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div><figcaption class=\"wp-element-caption\"><em>Michele Shepard Zampini, TICAS Senior Director of College Affordability, discusses profit motives in the student loan industry, and explains why we need to examine the role of colleges in student debt and the student loan industry.<\/em><\/figcaption><\/figure>\n<p>In a decisive election year, tens of millions of borrowers are also transitioning from the unprecedented pandemic payment clause \u2014 which, through March 2020 through fall 2023, exempted federal student loan payment and interest accrual \u2014 back into payment.<\/p>\n<p>For many of these borrowers, \u201cmonthly payments are too high for them to afford. Basic living expenses like rent, food, child care, health care, or transportation are competing with loan bills,\u201d Zampini explained. While 92% to 93% of outstanding student debt is federal, many of those with non-federal, private or state loans \u201care not eligible for these relief initiatives at all.\u201d<\/p>\n<p>\u201cIf Biden is reelected, I think the administration will continue to try and expand these initiatives,\u201d she continued. \u201cIf it changes, we\u2019ve heard the platform from the other side: not to invest in these student aid programs, or even overturn them. Many of these programs are not ensured by law. They\u2019re dependent on who is in the White House \u2014 so the stakes are very high for future students, and for those who have debt now.\u201d<\/p>\n<h2 class=\"wp-block-heading\">The impact of student debt and relief<\/h2>\n<p>For borrowers with snowballing interest, debt relief can be the difference between retiring at all and working for life.<\/p>\n<p>\u201cIn 1990 I moved to Florida from Venezuela, where I was a physician with a master\u2019s degree in ear, nose and throat surgery,\u201d said Virginia Brown, a 72 year old recently retired mental health social worker. \u201cI spoke English, I was a citizen, and I couldn\u2019t find a good job. Finally, I went to school for professional mental health counseling \u2014 I always loved helping people.\u201d<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<div class=\"youtube-embed\" data-video_id=\"Wkjws_Cfy6g\"><iframe loading=\"lazy\" id=\"widget6\" title=\"The Steps to Student Loan Forgiveness \u2013 A Borrower Shares Her Story\" src=\"https:\/\/www.youtube.com\/embed\/Wkjws_Cfy6g?feature=oembed&amp;enablejsapi=1\" width=\"100%\" height=\"392\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div><figcaption class=\"wp-element-caption\"><em>Virginia Brown, a mental health counselor and social worker, explains how she was eventually able to get her student loan forgiven. Brown recently retired and was able to move closer to her family thanks to debt forgiveness.<\/em><\/figcaption><\/figure>\n<p>\u201cAlready having a master\u2019s, I couldn\u2019t go back to a bachelor\u2019s or find an affordable alternative, so I took out a loan to go to Orlando Rollins, a private college,\u201d she continued. \u201cPeople said \u2018You\u2019re going to get into all this debt,\u2019 but it was the only choice.\u201d<\/p>\n<p>\u201cAfterward I had two, three jobs at a time working in nonprofit social service, but interest grew the debt beyond $100,000 even as I was paying. Day-to-day, I had to choose between paying up to $900 a month on a loan or the power bill, and I couldn\u2019t afford moving closer to my family in Jersey City, where I am now,\u201d she said.<\/p>\n<p>\u201cI found out I was able to get my debt forgiven in 10 years through the PSLF program, by transferring my loan from private to federal and continuing to work in nonprofits,\u201d Brown explained. \u201cIn mid-2021 I got an email saying it was forgiven, and I couldn\u2019t believe it. I sent it to my son wondering if I was dreaming.\u201d<\/p>\n<p>\u201cI had jobs that I liked, providing an important social service to the community, but due to student loans I was stuck geographically and professionally,\u201d she added. \u201cWithout that relief, I wouldn\u2019t have been able to retire or live close to my family. Debt forgiveness is life-changing.\u201d<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>BySelen Ozturk Apr 24, 2024 As&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17,7],"tags":[],"class_list":["post-64440","post","type-post","status-publish","format-standard","hentry","category-education","category-u-s-a"],"_links":{"self":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/64440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=64440"}],"version-history":[{"count":1,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/64440\/revisions"}],"predecessor-version":[{"id":64441,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/64440\/revisions\/64441"}],"wp:attachment":[{"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=64440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=64440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=64440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}