President Biden's economic stimulus bill, the Build Back Better Act, does not range from the cancellation of student loans and it has removed any provision for free college. Instead, the law focuses on creating employment opportunities for middle-class families by making higher education more accessible. Here's what you need to learn about this week's trends and their potential impact on your student loans.
1 current trend in student education loans for the week of November 1, 2022
1. The Build Back Better framework does not include education loan cancellation reely community college
Late a week ago, President Biden announced part of his latest stimulus bill, the Build Back Better Act. This new framework cuts the bill from $ 3.5 trillion to One dollar.75 trillion, removing previous provisions that would make two years of community college free for each student. Also absent is any kind of student loan forgiveness.
That said, students will still see benefits in the current framework. The administration is focused on training the workforce with an equitable advanced schooling system rather than forgiving education loan debt. “The Build Back Better framework will make education beyond senior high school – including practicing high-paying jobs currently available – more affordable,” the White House press release said.
Here are Biden's advanced schooling plans if the bill passes:
- Increase the maximum Pell grant to $ 550 and expand use of Deferred Action for Childhood Arrivals (DACA) beneficiaries.
- Invest in Historically Black Universites and colleges (HBCUs), Tribal Colleges and Universities (TCUs), and Minority Serving Institutions (MSI) to provide financial assistance to low-income students and improve research facilities in schools.
- Invest in affordable job training at universities and vocational schools.
- Invest in degree programs and practices.
How it affects student loans
In terms of college proposals, the current iteration from the Build Back Better law would benefit students in financial need the most; increasing all the the Pell scholarship could lessen the requirement for student education loans for college students entitled to assistance. Students attending institutions serving minorities might also see indirect benefits when it comes to better research programs and more opportunities for educational funding.
For the bill to be enacted, the framework must first be passed by Congress. If adopted, the framework assists like a guide when drafting legislation. While obama calls on Congress to pass through the bill as soon as possible, there isn't any official timeline.
Key to take away
President Biden's most recent stimulus bill no longer includes free vocational schools, but promises more Pell Grant funds along with other investments in education.
Here's how to prepare
Whether you're new to the region of student education loans or already in advanced repayment, it makes sense to remain along with how your education loan rates might change. As 2022 continues, more opportunities for cheaper loans or loan cancellations may open up; Keep an eye on the Bankrate education loan news center for the latest trends.