Will Biden's Forgiveness Program Help the Poor?

40% of all borrowers who will be receiving relief came from households that were living at or below the federal poverty line. The wealthiest households with the highest net worths are the 22% who have college degrees but no student loan debt. A popular headline suggests that this policy is going to increase taxes for the average American by $2,000 per year.

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Given the huge decision that came out of the White House last week about student loan forgiveness, we decided to create this special bonus episode all about the announcement and what it means for not just borrowers, but all of the US.

We'll explore the current numbers of federal student loan borrowers, dive into the issues of taxes and inflations (while dispelling some myths!), and hear about the program and changes to expect from FINRA Certified Student Loan Professional® Meagan Landress of Student Loan Planner (https://www.studentloanplanner.com/).

CORRECTION: We published this episode a few days after the news first broke, and things are quickly evolving in the White House! Here's a quick update on who's eligible for relief: "Current students and borrowers who have federally held undergraduate, graduate and Parent PLUS loans that were distributed on or before June 30, 2022 are eligible for the relief, says Megan Walter, a policy analyst for the National Association of Student Financial Aid Administrators."

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Mentioned in the Episode

Fact Sheet: Student loans: https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/
Student loan debt vs. mortgage debt: https://podcasts.apple.com/us/podcast/a-new-plan-for-student-loans/id1200361736?i=1000577422717
Of Dollars and Data: https://ofdollarsanddata.com/who-holds-the-student-loan-debt/
Newsweek fact-check on taxes and student loan forgiveness: https://www.newsweek.com/fact-check-ted-cruz-says-student-debt-relief-costs-2100-per-taxpayer-1737293
Federal budget deficit: https://datalab.usaspending.gov/americas-finance-guide/deficit/trends/
Federal budget spending: https://datalab.usaspending.gov/americas-finance-guide/spending/
Expense of stimulus checks: https://www.pandemicoversight.gov/data-interactive-tools/data-stories/three-rounds-stimulus-checks-see-how-many-went-out-and-how-much
New tax proposal for households above $400K+: https://www.nytimes.com/2022/07/07/us/politics/medicare-solvency-taxes.html
Tax Foundation memo on unrealized capital gains on households with $100M+: https://taxfoundation.org/biden-tax-increases-2023-budget-proposal/
10 richest members of Congress: https://en.wikipedia.org/wiki/List_of_current_members_of_the_United_States_Congress_by_wealth
Net worth of $100M+ represents 0.01% of Americans: https://realtimeinequality.org/
Wall Street Journal's on student loan forgiveness and inflation: https://www.wsj.com/articles/biden-student-loan-forgiveness-raises-inflation-budget-risks-11661457157
Mike Solana on the student debt crisis: https://www.piratewires.com/p/debt-babies
See if you have federal loans: studentaid.gov