Financial debt can be good or bad depending on your perspective and which type you have. Robert Kiyosaki, one of the most popular real estate investors claims that most debt is actually good if you know how to use it. However, it is agreed upon out of all classifications of financial debt, the worst is student loans.

The current 2022/2023 student loan forgiveness plan by the Biden Administration would be a monumental achievement if passed. Many types of debt relief have been implemented in the history of America. Over $1.6 trillion is owed by over 43 million Americans.

  • $1.75 trillion in total student loan debt (federal and private)
  • Average of $28,950 owed per borrower
  • About 92% of all student debt are federal student loans; remaining amount is private
  • 55% of students from public four-year institutions had student loans
  • 57% of students from private nonprofit four-year institutions have education debt

With 10 grand for all borrowers making less than $125,000 per year and 20 grand for Pell Grant recipients, this unprecedented forgiveness that has been discussed for decades could finally become reality. The main issue is a disagreement on fairness and ethics.

Insider reports:

A primary thread among the lawsuits is that Biden’s overstepping his authority by enacting one-time debt relief using the HEROES Act of 2003, which gives the Education Secretary the ability to waive or modify student-loan balances in connection with a national emergency, like the COVID-19 pandemic.

Insider continues:

Biden’s administration, along with some legal experts and advocates, have maintained that the authority clearly exists under that law. But given it’s the root of many of the challenges to the loan forgiveness, some have argued Biden can save the relief by turning to a different authority: the Higher Education Act of 1965.

It is clear this possible achievement is life changing for many and would give relief to millions of struggling families who are already bombarded by inflation and an upcoming recession. We all are eagerly awaiting this historic decision by the supreme court, which could take months of review.

Here’s a Valuetainment clip on Student Loan Forgiveness:

https://www.youtube.com/watch?v=ie_WzHmmxf0

 

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