Biden administration approves $9 billion in student loan forgiveness

The Street

TheStreet’s Sara Silverstein brings you the biggest news of the day, including a look ahead to tomorrow’s jobs report and the Biden administration forgiving $9 billion worth of student loans.

Transcript

00:00 I'm Sarah Silverstein reporting from the New York Stock Exchange.

00:03 Here's what we're watching on the street today.

00:05 Wall Street is reacting to weekly jobless claims, which showed 207,000 people filed

00:10 for unemployment last week, just above the previous week's 204,000.

00:15 This report continues to prove that the labor market is still tight despite the Federal

00:19 Reserve's efforts to cool it.

00:21 And investors are looking ahead to even more data on the labor market when the September

00:25 jobs report comes out Friday morning.

00:28 Investors are expecting the U.S. economy to have added 170,000 jobs last month, slightly

00:33 below the 187,000 added in August.

00:37 The unemployment rate is expected to drop from 3.8 percent to 3.7 percent.

00:41 Meanwhile, President Joe Biden announced that he has approved $9 billion in student loan

00:46 forgiveness for 125,000 Americans.

00:49 The announcement comes just months after the U.S. Supreme Court struck down the administration's

00:53 plan to cancel up to $20,000 in student debt for millions of Americans.

00:58 $5.2 billion will be going to borrowers who have worked in public service for a decade

01:04 or more.

01:05 $2.8 billion will go to borrowers who have enrolled in income-driven repayment plans.

01:09 And $1.2 billion will go to borrowers with disabilities.

01:13 The president also announced a one-year "on-ramp" to repayment.

01:17 According to the administration, the on-ramp will make sure "financially vulnerable borrowers

01:22 who miss monthly payments during this period are not considered delinquent, reported to

01:27 credit bureaus, placed in default or referred to debt collection agencies."

01:31 Federal student loan payments resumed on October 1st after being paused since March 2020.

01:36 That'll do it for your daily briefing from the New York Stock Exchange.

01:40 I'm Sarah Silverstein with The Street.

01:41 Thanks for watching.

01:42 Have a great day.

01:42 [BLANK_AUDIO]

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