Debt | Spark of Genius

Australia to slash $10 billion off student debt amid cost of living pressures

By Peter Schulte / November 2, 2024

Australian Prime Minister Anthony Albanese has said that his government plans to cut student loans for around three million Australians by 20%, wiping off around $10 billion USD in debts. The move builds on May’s budget, which attacked cost of living pressures in Australia and gave debt relief for students, as well as more investment to make medicines cheaper, and a boost to a rent assistance program. The changes would mean the average graduate with a loan of A$27,600 would have A$5,520 wiped, the government said, adding that they would take effect from June 1, 2025.

Biden forgives more student loans: 60,000 borrowers will get notices canceling $4.5 billion in debt

By Peter Schulte / October 17, 2024

The Biden administration has forgiven another $4.5 billion in student debt for more than 60,000 borrowers. The latest round of relief is a result of the U.S. Department of Education’s fixes to the popular, but once-troubled, Public Service Loan Forgiveness program. President Biden, who has forgiven more education debt than any other president in U.S history, said that the number of borrowers to benefit from the program under his administration now exceeded 1 million.

U.S. President Biden announces additional $1.2 billion in student debt relief for 35,000 public-sector workers

By Peter Schulte / July 18, 2024

President Joe Biden announced another round of student loan debt forgiveness, totaling $1.2 billion for 35,000 public-sector workers including teachers, nurses, and firefighters. The administration has now canceled more federal student loan debt than any prior administration – now totaling more than $168 billion for nearly 4.8 million Americans.

United States to ban medical debt from credit reports

By Peter Schulte / June 11, 2024

In a sweeping change that could improve millions of Americans’ ability to own a home or buy a car, the Biden administration proposed a rule to ban medical debt from credit reports. The rule, announced by Vice President Kamala Harris and Consumer Financial Protection Bureau Director Rohit Chopra, comes as President Joe Biden beefs up his efforts to persuade Americans his administration is lowering costs, a chief concern for voters in the upcoming election.

Biden administration cancels $7.7 billion in student debt for 160,500 Americans

By Peter Schulte / May 23, 2024

The White House has approved $7.7 billion of student debt cancellation for 160,500 borrowers, part of its ongoing effort to provide relief after the Supreme Court last year blocked President Joe Biden’s plan for broad-based college loan forgiveness. With the latest round of forgiveness, the administration has erased a total of $167 billion in student loans for 4.75 million people, or about 1 in 10 student loan borrowers.

Biden administration to forgive $1.2 billion in student debt for over 150,000 borrowers

By Peter Schulte / February 21, 2024

The Biden administration will forgive another $1.2 billion in student debt for nearly 153,000 borrowers enrolled its new repayment program, called the Saving on a Valuable Education, or SAVE, plan. The relief will go to borrowers who have been in repayment for a decade or longer, and originally took out $12,000 or less. Biden has now canceled debt for almost 3.9 million borrowers, totaling $138 billion in relief.

Somalia secures $4.5 billion debt relief deal with international creditors

By Peter Schulte / December 13, 2023

The deal comes as part of a debt forgiveness program —called the Heavily Indebted Poor Countries initiative— overseen by the IMF and the World Bank. As a result of its participation in the program, Somalia’s external debt will fall from 64% of GDP in 2018 to less than 6% of GDP by the end of 2023.