"The approval of $7.7 billion in student-debt cancellation for 160,500 borrowers is the latest move in the Biden administration’s campaign to confront the nation’s nearly $1.6 trillion in student debt. The administration is working piecemeal after the U.S. Supreme Court struck down more expansive efforts last year. These efforts inspire heated debate, but they often overlook a crucial factor: Too many students aren’t achieving their economic potential because they never completed college," Barron's writes.

... "There are now more than 40 million people in the United States who attended college but never earned a degree. A large number of them do, however, have student debt. About 40% of student loan borrowers do not graduate. According to a recent report commissioned by the National Association of Student Financial Aid Administrators, while many graduates ultimately earn enough to pay down their loans, those who stopped out of college are far less likely to do so. Stop-outs in the study collectively owed an additional billion dollars in interest four years after they left college. Unable to secure the kind of well-paying jobs more readily available to degree-earners, borrowers without a degree are three times as likely to default on their loans."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 7/12/2024