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The Biden administration released new estimates on how much the federal government (U.S. taxpayers) stand to lose to unpaid student loans.
The Wall Street Journal reported that the jump of some $53 billion has been partially blamed on lower repayment rates and COVID War-relief efforts. President Joe Biden has indicated that he is willing to wipe out $10,000 in debt per borrower. There has been a Democrat push to increase that amount to $50,000.
Biden did not include any student loan relief in his $6 trillion budget proposal.
The Journal reported that there are 43 million Americans with some form of student loan debt, which amounts to $1.6 trillion. The paper reported that Biden’s budget estimates that the government’s long-term loss estimate is nearly $70 billion. The Journal said student loan repayments are based on income, and after 20 to 25 years, the amount is forgiven.
CNBC reported that women owe 66% of the country’s outstanding student loan balance. Women borrow– on average– more than $31,000 to finance their education.
The report said that more than 20 percent of the outstanding debt is held by people over the age of 50. The average balance for borrowers aged 50 to 61 was $42,290.32 at the end of 2020, the report said.
TREND FORECAST: We note this to further illustrate the widening gap between the rich and poor in the United States and how millions will live in deep debt for much of their lives. Furthermore, with the Bigs getting bigger and buying up/merging businesses, there will be less employment opportunity for the in-debt college educated to climb the corporate ladder.