The Biden administration has canceled approximately 10% of all outstanding U.S. student debt with its latest forgiveness initiative, as reported by Forbes. This move is part of broader recent policies that have a combined projected cost of $870 billion to $1.4 trillion, according to Budget Hawks. This amount surpasses all federal spending on higher education throughout U.S. history, with most of the debt cancellation executed through executive actions under President Biden. Concurrently, in Australia, the Labor government announced changes to the HECS-HELP student loan program, which includes a $3 billion budget commitment to reduce annual indexation rates and index them to wages, benefiting over three million graduates.
Is student debt forgiveness a good policy?
ALP wiping $3b of student debt and indexing to wages is a good thing. This measure will (slightly) incentivize higher education, fostering a more skilled labour force. To keep it budget neutral, simply redirect 7.1% out of the NDIS handjob budget to cover the cost. https://t.co/oJEdGyw5RZ
A major shake-up of the HECS-HELP student loan program will allow more than three million graduates to cut back on their annual indexation rates under a new $3 billion budget commitment. https://t.co/xt3iaYDS3R
Labor to wipe $3bn from Hecs and Help debts through indexation changes https://t.co/3HkzSjmjrL
.@BudgetHawks: all recent student debt cancellation policies will cost a combined $870B-$1.4T. That’s more than all federal spending on higher ed over the nation’s entire history. Most of debt cancellation was thru executive actions under Biden. https://t.co/bfBCr0L2Lw
The Biden administration has cancelled approximately 10% of all outstanding student debt in the U.S. with its latest round of forgiveness Wednesday, according to Forbes. https://t.co/dui3p7af6C