Biden’s $5.8 Trillion Budget Excludes Student Loan Relief — But Help May Still Be Coming – Forbes

The Biden administration unveiled the broad $5.8 trillion budget plan. The proposal calls for increased military spending, a rise in taxes on the super wealthy, as well as additional funds for affordable housing and gun violence prevention programs and investments in manufacturing in order to solve supply chain problems that have been recurring.

The only thing missing from the budget plan is significant new student loan relief for students. However, that doesn’t mean further relief won’t come soon. Here’s what loan borrowers need to know.

Biden’s Budget Does Not Provide Direct Assistance for students who are borrowers of student loans.

The budget proposal includes an increase in funding for a number of high-priority areas in higher education, such as the possibility of doubling (by 2029) the amount that is allowed for Pell Grant — a kind of federal aid available to students of low income who do not require repayment. The budget also includes the funding of $752 million for HBCUs, as well as $800 million to simplify and enhance student loan servicing.

President Joe Biden offered some assistance to students who are borrowers of student loans in his budget, however the debt repayment that the majority of people wanted was not included in the budget.

This week, Biden unveiled his $5.8 trillion budget plan that included plans for taxing billionaires to finance the police and make investments in tackling the global climate catastrophe. Education was also given an $88.3 billion budget requestthat’s which is a $15.3 billion increase over 2021. A large portion of the funding targeted towards K-12 education.

In relation to the higher educational system, Biden proposed a “historic” increase of the highest Pell Award, boosting the funding available to historically Black universities and colleges as well as institutions serving minorities by $752 million, as well as providing to the Federal Student Aid office $2.7 billion in funds to “provide better assistance to student loan borrowers.”

“Across the nation We must concentrate our efforts on recovering. This means that all students , especially students from communities with low access to education and those most affected by the disease have the support they require to succeed,” Education Secretary Miguel Cardona stated in an official statement. “Importantly this budget ensures that students have the accessibility of affordable higher education as well as the development of pathways to meet the needs of our current workforce and link students to jobs that pay well and rewarding career paths.”

If you’re looking for an indication of how far the Democrats have transformed themselves from the party of working men to the party of the wealthy Take a look at how hard progressives are urging Biden to extend the freeze on college loans. Biden for extending – six timesthe freeze on college loan repayments.

This is a class warand those who wear modern-day versions of monocles and top caps are winning.

People that have loans from college that they have to repay typically quite prosperous. This isn’t a surprise since only three out of every three working age Americans are college graduates and college graduates make more money than those with only high school degrees. The same goes for those who attend college, but do not earn an academic degree. Forgiveness for college loans is primarily government assistance to people with higher incomes than average.

If you have any knowledge of higher education, then you’ll not be shocked to discover that those with the most debt to college are those who earn the most. The big loans typically don’t originate from financing a liberal arts master’s degree from or at an Ivy League college: The top schools have huge funds of their own. That is the reason why, for instance that the vast majority of Princeton graduates graduate without student debt however, the small portion who do have loans generally end having debt of less than $10,000.