Biden's latest round of student loan handouts brings admin total to more than 5 million
Published On Jan 13, 2025, 1:39 PM
President Biden announced that more than 150,000 student loan borrowers will receive benefits through his administration's student loan handout program, bringing the total to over 5 million beneficiaries since he took office. This includes borrowers from schools that defrauded them, those with permanent disabilities, and public service workers. His administration has also significantly increased Pell Grant maximum amounts and reopened two repayment programs: Pay As You Earn (PAYE) and Income-Contingent Repayment (ICR), aiming to provide relief and support to borrowers. The total amount forgiven under this initiative has reached $183.6 billion.
Stock Forecasts
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The ongoing forgiveness of student loans and the reopening of enrollment for repayment programs signal a continuing commitment to addressing student debt, which could positively impact consumer spending and related sectors. As more individuals benefit from these programs, disposable income may increase, potentially leading to greater spending on consumer goods. This could positively affect related sectors, particularly consumer discretionaries. ETFs focused on consumer discretionary stocks may benefit from the increased spending power of formerly indebted individuals.
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