Leaders.com
  • Login
  • Subscribe
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
  • Login
  • Subscribe
Public Policy Biden

Student loan forgiveness is facing setbacks (Photo by Chip Somodevilla/Getty Images)

By Tyler Hummel Leaders Staff

Tyler Hummel

Tyler Hummel

Tyler Hummel is a news writer for Leaders Media. He was the Fall 2021 College Fix Fellow and Health Care...

Full bio


Learn about our editorial policy

Sep 30, 2022

Pulling Back Student-Debt Relief 

Student loan forgiveness has been scaled back and will no longer relieve private loans. 

Key Details

  • President Joe Biden’s student-loan forgiveness executive order is being scaled back so that private loans will now be excluded.
  • “As of Thursday, borrowers with federal student loans not held by the Education Department are no longer eligible to obtain one-time debt relief by consolidating those loans into Direct Loans,” says The Hill. 
  • “The department said only borrowers in the Federal Family Education Loan (FFEL) Program whose loans are held by the federal government are eligible,” The Hill reports.
  • The decision comes in response to multiple legal challenges from six states.

Why it’s important

The executive order is facing numerous legal challenges at the moment—both from partisan opponents with constitutional concerns about the executive order and from individuals who are being negatively impacted by the order. 

The legal challenges could further delay, reduce the scope of, or strike down the executive order. 

“Six Republican-led states filed a lawsuit on Thursday against the administration in the U.S. District Court for the Eastern District of Missouri, arguing the proposal is unlawful because there is no statute from Congress authorizing the cancellation of student loan debt,” says The Hill. 

“Public interest firm Pacific Legal Foundation filed a lawsuit against the administration, challenging it through a plaintiff who is currently paying off loans and would be subject to an expensive tax in the event of debt relief because he lives in Indiana, one of several states that considers debt cancellation taxable income.”

President Biden and his administration are continuing to defend the legality of the order, emphasizing how important it is to relieve the outstanding $1.5 trillion in debt harming the lower and middle classes. 

Backing up a bit

Biden’s August 24 executive order is facing alot of criticism. While the order boosted his poll numbers by as much as 10%, it has drawn constitutional, budgeting, and partisan concerns—with analysts citing the dangers of permitting an expensive executive order without congressional approval. 

The Congressional Budget Office says that the order will cost $400 billion and inflate the deficit. 22 Republican governors even appealed the order in a September 12 letter.

“No statute permits President Biden to unilaterally relieve millions of individuals from their obligation to pay loans they voluntarily assumed,” says Nebraska Attorney General Doug Peterson. 

Home / News / Pulling Back Student-Debt Relief 
Share
FacebookTweetEmailLinkedIn

Related Stories

Shell Wavers On Oil Output Reduction

by Hannah Bryan Leaders Staff
Business

8 minutes ago

shell production

Shell CEO Wael Sawan is considering whether or not to continue building on the company’s record earnings from last year by increasing oil production. 

Key Details

  • While the London-based energy company’s investors would applaud increased revenue, increased production would likely result in complaints from environmentalists. 
  • Many critics want Shell to prioritize investment in climate-related activities. Those same critics would see increased oil production as a step back from that goal. 
  • Though Sawan says the company is still committed to lowering its overall emissions, he recognizes that the greatest profit potential lies with oil and gas, The Wall Street Journal reports. 
  • Additionally, Sawan believes Shell’s fossil fuel profits should not support renewable and low-carbon energy options. The alternative energy options should be able to support themselves. 
  • As Sawan looks at the energy company’s portfolio, he is considering revising Shell’s previous commitment to reduce crude output by 1% to 2% each year until 2030.

Go deeper

FacebookTweetEmailLinkedIn

One Year Out: War’s Effect On Russia’s Economy

by Hannah Bryan Leaders Staff
Business

59 minutes ago

Russia economy

Initially, Russia’s invasion of Ukraine brought a spike in revenue for the invading country as demand for oil and gas rose, but that is coming to an end as the Russian economy struggles to produce. 

Key Details

  • A series of Western sanctions on Russian gas and oil have cut into one of the country’s most significant sources of revenue. 
  • Its largest exports—gas and oil—have lost major European customers. The ruble has declined 20% since November, and the country’s labor force is shrinking as more young people flee the country or are drafted. 
  • The economy struggles to grow as uncertainty surrounding the economy and the country’s fate have dissuaded any significant business investment, The Wall Street Journal reports. 
  • While the country’s current economic struggles may not be enough to halt the ongoing war, the Russian government could face a choice between military expenses and social spending that has largely protected civilians from feeling the shortages. 

Go deeper

FacebookTweetEmailLinkedIn

Disney Uninstalls the Metaverse 

by Tyler Hummel Leaders Staff
Tech

About an hour ago

VR

The Disney corporation has begun backing away from the metaverse—firing its entire development division, in its efforts at cost savings. 

Key Details

  • CEO Bob Iger is in the process of restructuring the Disney corporation and eliminating 7,000 jobs over three rounds of layoffs. 
  • The company’s internal metaverse team, with 50 employees dedicated to using the company’s brands to tell interactive stories within new technologies, is among the layoffs, with nearly every employee being let go. 
  • The division was started in February 2022 and led by former SVP of consumer experiences and platforms Mike White.

Go deeper

FacebookTweetEmailLinkedIn
Ukraine
Business

About an hour ago

U.S. Struggles To Keep Ukraine Accountable

by Tyler Hummel Leaders Staff
Target RedCard
Business

3 hours ago

Target Competes With Visa And Mastercard

by Hannah Bryan Leaders Staff
Casamigos Tequila founders Rande Gerber (left) and George Clooney (right)
Business

5 hours ago

A Celebrity’s Value To an Alcohol Brand

by Savannah Young Leaders Staff

Recent Articles

Leadership

5 hours ago

The Most Productive People Follow Daily Routines, Here’s Why

By following a structured daily routine, you give your mind a break from making constant decisions, saving mental energy and willpower

Productivity

Mar 27, 2023

84% of Workers Are Easily Distracted—Here Are 10 Tricks to Stay Focused

Learn to improve mental performance when you can’t stay focused.

Leadership

Mar 22, 2023

Creating Loyal Employees Is About More Than Just the Paycheck

If you think simply paying your employees more will gain their loyalty, think again.

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2023 Leaders.com - All rights reserved.

Search Leaders.com