Biden’s Student Loan Dilemma

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The New York Times

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Across the United States, 45 million borrowers now owe $1.6 trillion in debt for federal loans taken out for college — more than consumers owe on any other debt except mortgages.

For the past two years, beginning as the pandemic spread, the U.S. government has allowed tens of millions of Americans to stop paying back their students loans.

This experiment in debt deferral has had unintended consequences, and poses a dilemma for President Biden.

Guest: Stacy Cowley, a finance reporter for The New York Times.

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Background reading:

  • The Biden administration has paused student loans once again. The four-month delay means the pause will become an issue again before the midterm elections.
  • While politically popular with Mr. Biden’s party, the extension of the loan moratorium has drawn criticism for adding a small measure of oomph to the inflation the government is trying to tame.

For more information on today’s episode, visit nytimes.com/thedaily. Transcripts of each episode will be made available by the next workday.

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