Biden Administration forgives another $1.2 billion in student debt

The Street

TheStreet’s J.D. Durkin brings you the biggest news of the day, including how the market fared and the Biden Administration’s continued effort to abolish student debt.

Transcript

00:00 I'm JD Durkin reporting from the floor of the New York Stock Exchange.

00:03 Stocks were in mixed territory to close out today's session.

00:06 The Dow closed up 48 points.

00:07 The tech-heavy Nasdaq closed down 0.3% while the S&P 500 closed fractionally higher.

00:14 Investors are reacting to minutes from the Federal Reserve's January meeting which indicated

00:18 that the Fed will hold off on cutting interest rates until it is confident inflation is slowing.

00:23 Currently, markets are pricing in a 6.5% chance of a rate cut in March.

00:29 In other news, the Biden administration is now forgiving another $1.2 billion in student

00:34 loan debt.

00:35 More than 150,000 Americans enrolled in the Saving on a Valuable Education, or SAVE, plan

00:41 will receive student debt relief.

00:43 To be eligible, borrowers have to have taken out a loan of $12,000 or less and have been

00:48 repaying that loan for at least a decade.

00:51 Under normal terms for repayment plans, borrowers don't receive debt forgiveness until 20 to

00:55 25 years of payments.

00:57 But the new SAVE plan allows borrowers to see their debt canceled in about 10 years.

01:02 Of the news, Education Secretary Medel Cardona said, "With today's announcement, we are once

01:07 again sending a clear message to borrowers who had low balances.

01:11 If you've been paying for a decade, you've done your part and you deserve relief."

01:16 According to the White House, the Biden administration has now canceled more than $138 billion in

01:22 student debt for nearly 4 million Americans.

01:25 That will do it for your daily briefing.

01:28 I'm J.D. Durkin with The Street.

01:30 Thanks.

01:31 Thanks.

01:31 [BLANK_AUDIO]

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