The US Student Loan Crisis: All You Need To Know

The student loan repayments that will be due for many in the upcoming months are racing through the hearts of many Americans and those studying in American universities in recent student loans USA news. According to recent developments in the student loan forgiveness news, October 1st is when the loan repayments are due, causing distress to many nationwide. 

Millions of students who pursued their studies in the USA since the COVID period in 2020 have received reprieve from the American government. This reprieve from the debt repayment had been extended multiple times, bringing us to today. 

As of October 1st 2023, more than 45 million borrowers are now due their loan repayments in the face of the ever-rising cost of living and inflation. To combat this rise in anxiety caused amongst tens of millions of students, the Biden administration had proposed a scheme that would excuse about $20,000 worth of student loans for all those who had opted for student loans and were eligible for this mandate. The move, however, was shut off by the American Congress. 

As per the latest Federal Reserve figures, more than 45 million Americans owe a total of $1.7 trillion in student loans USA to the American government. Additionally, according to the Congressional Research Service (CRS), approximately 17% of the nation’s population aged 18 or above has some sort of federal student loan. 

Inflation has been a real issue for the youth of the country, making this student loans USA news all the more alarming. Independent research conducted by the College Board found that in the past three decades, college tuition fees have risen by 50%, and between 2006 and 2019, the balance yet to be repaid to the Federal Reserve in student loans has nearly quadrupled. 

An important development in the student loan forgiveness news was Biden’s plan in August 2022 to cancel out $10,000 worth of student loans for those earning less than $125,000. Additionally, those who fell under the government’s Pell Grant were planned to be awarded an additional $10,000 in financial assistance. However, this plan fell through. Stay tuned with us at amber for all developments in this student loans USA news.