Good News: Top Student Loan Company Expecting $10,000 Loan Relief
With President Joe Biden’s long-awaited decision to to forgive As student loan debt approaches, one of the nation’s largest student loan companies reckons borrowers can count on $10,000 in relief.
By Initiatedthe Lincoln Journal Star has reported that Jacque Mosely, director of government relations at student loan company Nelnet, said “the odds are pretty high” that Biden will wipe out $10,000 per borrower.
Additionally, Jeff Noordhoek, the company’s CEO, reportedly called the total student debt of $1.75 trillion in the country “a big number.” In fact, it’s too big.
The Nebraska paper noted that outstanding student debt has increased more than fivefold in less than two decades, from $330 billion in 2003 to $1.75 trillion last year, according at the Ministry of Education.
However, Noordhoek said canceling that debt would not necessarily solve the rapidly rising costs of higher education, largely because people would continue to borrow after Biden’s decision.
“Even if they cancel debt at any level, there will be $160 billion more borrowed next year and the year after and the year after,” he said. declared.
According at the College Board, average tuition and fees for the 2021-2022 academic year rose 1.6% to $10,740 for in-state students at public four-year colleges. Meanwhile, at private four-year institutions, tuition rose 2.1% to $38,070.
Additionally, data from the Institute for College Access & Success indicates that about 70% of college seniors graduate in the red, with each borrower owing nearly $30,000. And the average high school graduate this year could potentially take out up to $39,500 in student loans, according to a NerdWallet analysis of data from the National Center for Education Statistics.
Meanwhile, there appears to be a lot of pushback among some Washington lawmakers. In fact, Sen. Mitt Romney (R-UT) and several of his colleagues have introduced the Student Loan Accountability Act, which seeks to prohibit the Biden administration from largely canceling student loan debt. Since taking office, Biden has already forgiven over $17 billion in student loans for approximately 725,000 borrowers.
“It makes no sense for the Biden administration to write off nearly $2 trillion in student loan debt,” Romney said. declared in one version. “This decision would not only be unfair to those who have already paid off their loans or decided to pursue alternative education paths, but it would be extremely inflationary in an era of already historic inflation.”
Ethen Kim Lieser is a Washington state-based financial and technical editor who has held positions at Google, The Korean Herald, Lincoln Journal Star, Asian Week and Arirang TV. Follow him or contact him on LinkedIn.